Cameron's call for bosses to give staff a pay rise ignores the need for a government focus to increase UK productivity levels – CIPD

Ben Willmott, Head of Public Policy at the CIPD, the professional body for HR and people development:

 “Yes, costs are falling and it’s cheaper to do business but productivity growth is still stalling. Simply asking businesses to improve pay without examining more closely the factors which have contributed to our poor productivity performance fails to address the underlying cause of low wage growth.

 “The 2013 National Employer Skills Survey showed employers are spending less on training than before the recession. Unless we invest in our human capital as well as in things like infrastructure and technology, UK employers will struggle to get the most out of their workforces.

 “Evidence suggests that UK employers are not good at utilising the skills they do have – 30% of employees in the UK report they are over-qualified for their job, the second highest proportion in the OECD. We need to invest more in improving leadership and management capability, training and development and enhanced HR capability to improve job design and create more routes for pay progression and more high performance workplaces.

 “What we need is politicians, business and employer representatives and trade unions to come together to properly engage with these complex, long-term structural problems undermining employer productivity and their ability to pay more.”

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