The two-year study, by Investors in People (IiP) and the Work Foundation, questioned nearly 3,000 organisations to draw out relationships between performance and people practices. It found that single-purpose HR measures do not work, and that the more integrated and greater in number they were, the better.
“We found there were at least 37 measures that have a major input into organisational performance,” said Kirsty Yates, head of research at IiP. “We also found that the more companies invest, the more performance improves – there is no levelling off as is often suggested.”
According to the research, the 10% increase in investment will also create increases in operating profit per employee of £1,139–£1,284 and an increase in profit margins per employee of 1.19%–3.66%.
Of the sample firms, 25% were IiP accredited, and these typically performed better than non-accredited firms.
