The Investors in People standard has helped employers develop staff skills,
but it has had little impact on productivity or business performance, claims
research released last week.
The research paper, Investors in People: Its Impact on Business Performance,
shows that 90 per cent of respondents believe their involvement with IIP has
improved their employees’ ability to do their jobs.
Furthermore, two-thirds of the 275 members surveyed believe that IIP has
helped them to improve the quality of training and development in their firm.
But only 15 per cent of directors believe that it has increased company
profitability and 27 per cent found that it enabled them to improve
productivity.
Richard Wilson, business policy executive of the Institute of Directors,
said, "Firms that use Investors in People are likely to derive benefits
from the scheme, especially in respect of workforce development.
Sign up to our weekly round-up of HR news and guidance
Receive the Personnel Today Direct e-newsletter every Wednesday
"However, its contribution to the bottom line, in particular its impact
on profits, is limited. IIP will not give directors the Midas touch."
More than 24,000 organisations have achieved IIP status and it is thought to
provide a framework for improving business performance through HR development.
