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In the Bulletin
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BUSINESS
February 2003 Issue

The cost of poor English
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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