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BUSINESS                                                             February 2003 Issue


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The cost of poor English

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Companies that do not place much value on high quality English communication, because they are "just as bad as everybody else," could be losing far more than they realise, writes GERRY BALL

The cost of poor English to businesses has long been a subject of debate. The most intangible issue is the effect that poor English has on weakening a company's brand value. More tangible, but nonetheless just as hard to calculate, is the amount of business a company loses due to poorly written proposals.

However, new research shows that aside from the above intangibles, there is a direct cost that can be calculated right down to the last cent, and that is "productivity loss."

In December last year, Mind Your Language (MYL), a specialist in improving English language communication, conducted a study for two of its clients to determine how much time their senior staff spent editing colleagues' work. The findings will make anyone who is interested in the bottom line sit up and listen.

Overpaid Editors

The study found that Client A, a financial services companies, had no less than 58 senior staff, earning an average HK$59,680 per month, spending an average of 30 minutes a day on editing their colleagues' work into presentable English. This equates to lost productivity of HK$3,730 per month, per employee. This may not seem like a lot of money, but when this cost is calculated for the whole company (i.e. 58 people) the costs amount to a staggering HK$216,340 per month or a whopping HK$2,685,600 per year.

Added to this definitive cost is the intangible cost of the senior members of staff being removed from the core role that they have been employed for. For example, if a marketing director spends half an hour a day editing their colleagues' grammar, that's half an hour that he/she is not marketing, and hence potential lost opportunities for the business.

Client B, a property management company, spent even more time than Client A ensuring that their English quality was of a respectable standard. Client B's senior managers spent about one-twelfth of their day editing colleagues' work, or a month out of every year.

According to figures compiled by Watson Wyatt, the average monthly salary for management positions in Hong Kong is HK$125,000 for top managers, HK$75,000 for senior managers, and HK$40,000 for middle managers.

If we take these figures above and then ask how much time staff filling these positions spend editing colleagues' work, we can begin to get a clearer picture of the productivity losses across companies, and therefore across the Hong Kong economy as a whole. Mind Your Language believes that productivity losses in staff time alone could run into the hundreds of millions of Hong Kong dollars annually.

Is English Really A Problem?

Judging from the amount of time and money Clients A and B invest each month ensuring quality English, it is clear that there is a significant problem, not just in Hong Kong, but also in many regional jurisdictions. There are also other facts that point to the rot setting in in Hong Kong. In a 2001 survey carried out by an amalgamation of 12 chambers of commerce in Hong Kong, including the British and American chambers of commerce. The results showed that 34 per cent of companies were either very satisfied or somewhat satisfied by the quality of English language, down from 41 per cent for the previous year.

What Can Be Done?

Mind Your Language has found that many second-tier and local companies do not place much value on high quality English communication, believing that the problem pervades so deeply into day-to-day business that they are "just as bad as everybody else." However, this is where the astute corporation can win business from their more lackadaisical competitors. Companies wanting to dramatically improve the quality of English communication inside their company should take the following simple two-pronged approach:

n Put in place a thorough English spoken and written programme that benchmarks the standards of all staff that are expected to communicate either externally with clients or internally with senior management;

n Simultaneously outsource all written English communication (from staff that do not meet the preset benchmarks) to a qualified third party, whilst English skills in the workplace are thoroughly upgraded to standards expected by senior management and external clients.

It is clear that the winners in any economic environment lead the field in communication, as good communication translates into increased brand value and increased business. Communication starts right at the basic level of communicating effectively in the preferred language choice of the customer. Companies that choose to ignore this fundamental truth do so at their peril.

Gerry Ball is the CEO of Mind Your Language Limited, and chairman of The Hong Kong Entrepreneurs Club. He can be reached at support@myl.com.hk, or on 2526 9250.


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