Helping small business stay ahead of the competition

Simon Jones, chief executive of Investors in People UK, explains how good people management can maximise business performance.

People management pays. That’s according to research published earlier this year which provides the strongest evidence to date of the link between effective people management and business success. As such, people management is an area no business owner or manager can afford to ignore, whatever their organisation size.

Start-ups and smaller firms often face particular challenges in prioritising people management, even if managers are convinced of its value. Lack of time and resource can be an issue, particularly when managers are faced with day to day pressures such as rising costs, increased competition as well changing employment legislation. The company may be without a dedicated HR function to oversee people management. However, the CBI’s recent education and skills survey highlights that small firms are often most in need of support to formalise their HR practices and realise the business benefits of developing their people - areas where the Investors in People Standard is proven to deliver most value.

So how can Investors in People help today’s start-ups and smaller firms make sure they put in place a people management strategy that will deliver for their business? The Investors in People Standard is a business tool designed to drive the performance of any organisation, whatever its size or sector, through its people. Some of the key areas on which the Standard focuses include effective leadership, employee understanding of business objectives and opportunities for learning and development. Together, a total of ten indicators build up a complete picture of how effectively a company is managing its people to best business advantage and highlight areas for development.

There is evidence that the Investors in People approach really works. The CBI education and skills report found that nearly three quarters of respondents felt the scheme had a positive effect on their business. Over half of respondents saw the main benefit of the Investors in People Standard as improved staff morale (52%) whilst a third (30%) recognised improved performance and nearly a quarter (24%) saw efficiency improvements. Furthermore, being publicly recognised as having good people management is key as it can help a business attract and retain the best talent as well as win new business. As well as helping start ups and smaller firms establish effective HR strategies and align their people with their business goals, the Standard can also help smaller companies evolve their people management practices in line with business growth. Indeed, the CBI report found that the Standard is particularly valuable for businesses undergoing significant and rapid changes.

Any organisation wishing to become an Investor in People is required to meet the same criteria but the assessment process recognises that each organisation will meet them in its own way. One quick and easy way to see how your company currently fares in the people management stakes is to check out IIP Interactive, the free online tool with diagnostic test, at www.investorsinpeople.co.uk/interactive. It’s a great way to get started, and find out how to get the best from your people to deliver business growth now and in the future.

For more information on Investors in People please visit www.investorsinpeople.co.uk