Increase people investment by 10% and reap dividends

<p>If firms increased their people investment by just 10%, they would receive a payback of increased gross profit per employee of 1,0831,568, new research reveals. </p> <p>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. </p> <p> 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. </p> <p>According to the research, the 10% increase in investment will also create increases in operating profit per employee of 1,1391,284 and an increase in profit margins per employee of 1.19%3.66%.</p> <p>Of the sample firms, 25% were IiP accredited, and these typically performed better than non-accredited firms. </p>