Invest in your people - is it worth it?
In these times of economic difficulty, is it still worth investing in your people?
Well two independent studies this year certainly say "Yes it is!"
First up, a research report - People and the Bottom Line - has been produced by the Work Foundation and the Institute for Employment Studies (IES) and supported by the Department for Innovation, Universities and Skills (DIUS), the Department for Business Enterprise & Regulatory Reform (BERR), Investors in People UK, the Sector Skills Development Agency (SSDA) and the University for Industry (UFI).
The report delivers strong evidence of the link between effective people management and business success. The two-year study suggests that organisations with a comprehensive approach to people management perform better than those without.
The analysis suggests that organisations which adopt a range of people management practices - from resourcing to employee engagement, skills development to job design - can achieve substantially stronger performance than employers that invest in just one area. Indeed, the results suggest that if a business increases its investment across a number of people management practices by around ten per cent, it could secure an increase in gross profits per employee of over £1,500 per annum.
In terms of practical application, the report also identifies the 12 core measures that are most effective in helping employers track the impact of their people management practices on business performance. These cover areas as diverse as recruitment, development plans and employee appraisals.
Secondly, a survey, conducted by the CBI (Taking Stock : Education and Skills Survey 2008) amongst board-level executives found that those questioned saw Investors in People as adding real value to firms, with nearly three quarters feeling the scheme had a positive impact on their business.
Just over half saw the main benefit of the Investors in People Standard as improved staff morale, whilst a third recognised improved performance and nearly a quarter saw efficiency improvements.
Also of interest, given the current economic climate, the CBI report highlighted that IIP provides a valuable framework for businesses undergoing significant and rapid changes. It recognised that employers value IIP as an effective way of driving cultural changes through organisations, helping all employees contribute more effectively to a shared goal.
The report also highlighted that many employers, whatever their size, found Investors in People Standard a valuable tool for business improvement, as it effectively links training and development with business strategy. It also identified that small and medium-sized firms are often most in need of support to formalise their HR practices and understand the business benefits of training for their firm - areas where Investors in People delivers most value.
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