What is Investors in People?

Investors in People is the National Standard which sets a level of good practice for improving an organisation’s performance through its people. The Standard was developed during 1990 by the national Training Task Force in partnership with leading national business, personnel, professional and employee organisations such as the CBI, TUC, and CIPD.

The result is a standard which provides a national framework for cohesive action through:

• Specifying the principles which tie training and development activity to business objectives.
• Ensuring resources committed to training and development are put to the most effective use.
• Providing a clear benchmark of good practice against which any organisation, large or small, can measure progress towards improved business performance.

Typical business benefits may include some or all of the following:

• Improvements in quality and customer service.
• Reduced costs and stock levels.
• An increase in employee’s skills, competence and commitment.
• Better communication throughout the organisation.
• A clear and shared prime aim or vision.
• Ability to identify the core strengths of the business and focus on how to improve the current team.
• Ability to react quickly and effectively to competition, if necessary by restructuring the organisation and re-deploying staff.
• Consistent management practice enabling the full value of business improvement initiatives to be released.
• Widespread commitment to excellence in quality and customer service.
• Regular communication, extensive measurement of performance and effective cost control.
• Willingness to delegate responsibility, empower all of the workforce and secure widespread flexible working practice through multi-skilling.
• Commitment to develop a flexible, skilled workforce able to respond to changes in technology and customer demands.
• Effective involvement of the entire workforce so that they contribute to innovation and the continuous improvement of the organisation.
• Willingness to take on new ideas and apply them to all business areas.

Benefits to the bottom line:

Profitability:

Return on sales (percentage)
All organisations 2.57%
IIP organisations 7.53%

ROCE (percentage)
All organisations 12.44%
IIP organisations 24.45%

Return on assets managed (percentage)
All organisations 4.73%
IIP organisations 6.66%

Productivity:

Average remuneration (£)
All organisations £14,500
IIP organisations £17,261

Turnover per employee (£)
All organisations £86,769
IIP organisations £178, 985

Profit per employee (£)
All organisations £2,229
IIP organisations £18,583

(Source for all of the above ‘Benefits of being an Investor In People’ IIP UK 2001 Product Code: IIP37D.)

If you would like to know more about Investors in People then please give us a call for an informal discussion on 01785 823583.