IIP failing to impact on the bottom line

Almost half of employers think the Investors in People scheme will help them
become more productive, but IIP accreditation makes little difference to the
bottom line, research claims.

The Institute of Directors report finds that 44 per cent of directors
seeking IIP accreditation anticipate it will improve productivity, while a
further 34 per cent think it will increase profits.

But the study shows that, in practice, the benefits are not so clear cut
with only 27 per cent of IIP employers reporting improved productivity and only
15 per cent increased profitability.

Richard Wilson, business policy executive at the IOD said that although IIP
was a useful tool in identifying training needs it would not automatically
improve output.

"It’s one thing to improve the skills of the workforce but that won’t
directly improve bottom line which is dependent on so many other factors
including economic cycles," he said.

However the poll of 275 directors reveals that almost all those using IIP
will continue to do so in the future and 90 per cent claim it has improved the
abilities of their workforce.

The study shows that most employers believe IIP improves training, with 73
per cent claiming it links training to business needs and 66 per cent
suggesting it raises the overall quality.

"IIP is a useful way of starting a framework for structured training in
larger firms. Despite government encouragement it’s not as useful to small
companies who know what skills staff need, and so don’t need this
framework," said Wilson.

The research Investors in People: Its Impact on Business Performance shows
the average cost of attaining the IIP standard is £13,800 rising to £39,424 in
firms with over 250 employees.


By Ross Wigham

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