Benefits of Investors in People

People go to Investors in People expecting business benefits…

When asking recognised organisations about their original expectations of the differences Investors in People can make, research has found that working with the Standard is exceeding employer’s expectations in terms of staff benefits (e.g. more motivated staff, lower turnover and absenteeism) and in terms of cost benefits (e.g. improved efficiency and productivity, less waste and increased profits).

Recent research shows that:

Organisational changes made by Investors in People recognised employers are twice as profitable as changes made by other companies. Changes made over the last three years by Investors in People recognised organisations increased profit by 7.16% of sales or £505 per employee per year, as opposed to 3.78% of sales or £197 per employee per year for other companies.
Changes made over the last three years by Investors in People recognised organisations increased profit by 7.16% of sales or £505 per employee per year, an average of £353 per employee of this increase to their annual profits is through their commitment to the Investors in People principles."
The profit attributed to working with the Investors in People Standard, by size of organisation, is as follows:
- Small organisations – £303 per employee per year (accounting for 4% of total increase)
- Medium organisations – £602 per employee per year (accounting for 60% of the total)
- Large organisations – £41 per employee per year (accounting for 36% of the total)
If these findings were projected to cover all Investors in People recognised organisations in the UK, it would show an increased profit of around £756 million attributable to working with the Standard.
94% of recognised employers within the study saw value in continuing to work with the Investors in People Standard after accreditation.

(Investors in People Impact Research conducted between 1^st March and 25^th March 2004)

Public sector:

Research looking specifically at the impact of IIP in the Public Sector showed that involvement with the Standard results in:

Positive change in organisation’s culture (89% great or some extent)
More involvement and commitment to business objectives of staff (85%)
An improved image of the organisation (82%)
Improved working relationships (80%)
Improved returns on HR investment (72%)

(The Impact of IIP in the Public Sector, PACEC, 2005 – 635 responses)

EEF research:

Research undertaken by EEF indicated that companies with Investors in People appeared to benefit more from training. Investors in People firms:

are substantially more likely to have a training budget (61%) compared with those without it and not working towards it (19%)
are far more likely to claim that the business plan has a significant impact on training (54%) than those without it and not working towards it (28%)
report a positive impact on productivity from training (90%) compared with non accredited firms (66%) and
are more likely to assess training outcomes (93%) than those without it and not working towards it (79%)

(Skills for Productivity: Can the UK Deliver? EEF, 2006 – 500 manufacturing respondents)