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Personnel Today

IIP good for employees, but not profits

by Personnel Today 6 Nov 2001
by Personnel Today 6 Nov 2001

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.

"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.

Personnel Today
Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

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