Company directors must wake up to HR, study reveals

Most
company directors and chief executives are not aware of evidence linking
effective people management strategies with improved bottom line performance,
according to a new CIPD study.

The
report also finds that the majority of board-level managers do not know that
good HR practices have a bigger impact on an organisation’s performance than
investment in research and development.

Voices
from the Boardroom is based on interviews with 48 board-level managers,
including CEOs and HR directors from 16 organisations within the public and
private sectors.

Many
of those interviewed said it is clear that good people management boosts
organisational performance but there is a lack of understanding about what
works in practice. 

The
respondents were very confident about the impact of careful selection and
performance management, but much more unsure about the benefits of training and
sharing information.

CIPD
director general, Geoff Armstrong, said the study reveals more needs to be done
to raise awareness of the importance of effective HR policies on an
organisation’s performance.

“This
work shows that senior managers are still unaware of the compelling evidence
that links people management with the bottom line,” he said.

“The
lack of awareness and understanding means boards are not getting the maximum
benefit from linking their business and people strategies. People management
professionals are ideally placed to guide board colleagues and line managers on
this critical area of business.

"The
CIPD is committed to building the evidence and defining what works in creating
a world-class enterprise.”

Only
13 of the 48 board members questioned indicated they were aware of the research
which links people management practices to the bottom line. 

www.cipd.co.uk

By Ben Willmott

Comments are closed.