The 300 firms in a study by Rubin Worldwide that are leaders in the use of information technology added jobs twice as fast as the average Fortune 500 firm between 2006-2011.
The premise that technology is great for productivity but not so great for employment has been debated for years. But a study by Rubin Worldwide found impressive job growth among companies that lead in the adoption of technology. The 300 firms studied from 2006-2011 (discussed in a recent IPB post by Howard Rubin) that demonstrated technology leadership across several indicators also generated a compound annual growth rate (CAGR) of total employees of 14%, versus only 6% for the average Fortune 500 firm. According to the study, part of the reason technology-leading firms employ more workers is that they are able to reduce the cost per employee. For example, among the 300 firms studied, the average cost per employee declined by three percent compared to one percent for other firms. Often in Washington productivity is equated to mean slimming down and cutting employment, but Rubin's study is an important demonstration that technology lets firms become more competitive which means they grow and add more jobs.