Capital Quality, which supports and assesses companies working towards Investors in People accreditation, has hit back at criticisms of the effectiveness of Investors in People as a business improvement framework.
A recent report from consultancy Valuentis said there was little tangible evidence that Investors in People accreditation leads to any commercial benefit.
It pointed out that, although it is a private company, Investors in People has received £32m of public funds since 1997.
In 2004-05 it received £5m in direct grants and aid from the Department for Education and Skills, of which £1.8m was spent on marketing, £1.6m on staff and £900,000 on administration.
“This would suggest that Investors in People is primarily a marketing agency, rather than a standard-setter,” the report said.
“Questions need to be raised regarding its remit and positioning, particularly in light of what amounts to a state-funded monopoly.”
But Capital Quality, a private limited company licenced as London’s Investors in People quality centre, said the framework makes sure that the right people in any company have the right skills at the right time.
John Telfer, group managing director at Capital Quality, said: “Those seeking to criticise the standard and its impact would be well advised to look at the overall strategic impact of all the investment in organisational training and development over the past 15 years and how it has made the UK into a more knowledge-based, vibrant and successful economy.”
Bob Macnaughton, chief executive of National Car Parks, which employs more than 5,000 staff, also backed Investors in People.
“Our learning and development team has been working with Capital Quality and Investors in People since 2003 and we have seen countless benefits: improved people support practices, staff learning and development has become a key business strategy, employee turnover is down 18% which has created a cost saving of £700,000.
“We are fully committed and now hope to achieve Investors in People Champion status in the near future. It has provided tremendous added value to the company.”