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Latest NewsHR strategy

Investors in People status falls short of employer expectations

by Nadia Williams 22 May 2008
by Nadia Williams 22 May 2008

The benefits of gaining the Investors in People (IIP) standard have been called into question by employers.

A poll of 81 employers by Personnel Today’s sister publication Employment Review found that gaining the accreditation did not always yield the results organisations hoped to achieve.

One in five expected it to increase profits, but none felt this was sufficiently achieved. And while 65% hoped it would boost their reputation, this was identified as the area where the standard had the least impact.

Instead, the greatest benefit of achieving IIP status was found to be the recognition of existing best practice within the organisation.

The IIP standard demonstrates that an organisation has been successful in adopting and maintaining certain core principles to improve its performance. It celebrated its 15th anniversary last year, at which point, 34,891 organisations had achieved accreditation.

An Investors in People spokesman said the survey’s findings were surprising.

“A CBI survey of more than 700 businesses in the UK found that those questioned saw IIP as adding real value to firms, with nearly three-quarters feeling that it had a positive impact on their business,” he said.

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“The CBI’s positive findings are also reflected by the Institute for Employment Studies which concluded that, all else being equal, IIP-recognised organisations will generate higher gross profits per person of £173.65 per employee.”

For more information, see the Yardstick section in the 27 May issue of Personnel Today.

Nadia Williams

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