The Business Case for Excellence Through People
A new study of Ireland's top companies has confirmed a strong link between bottom-line business performance and the use of High Performance Work Systems (HPWS) in the workplace. High Performance Work Systems include strategic human resource management (staffing, training and development, performance management and renumeration, communication and participation practices), partnership, diversity and equality strategies and flexible working arrangements.
Use of 'High Performance Work Systems' linked to:
- 14.8% growth in productivity
- Sales revenue of Eur 44,399 per employee per annum
- 12.2% improvement in worlforce innovation
- 7.7% reduction in employee turnover
Source 'New Models of High Performance Work Systems' (NCPP Jan 2008)
Innovative management and human-resource practices in the workplace can make a significant contribution to profitability, productivity and staff retention, according to research conducted for the National Centre for Partnership Performance (NCPP) by the University of Limerick and the University of Kansas, USA.
The study found that compared to other firms, companies deploying
progressive HR and general management practices saw increases in:
· Turnover of more than EUR 50,000 per employee
· Productivity of more 15.5% and
· Employee retention of almost 16%
Source: ‘High Performance Work Systems in Ireland: The Economic Case’ (NCPP 2005)
www.ncpp.ie
Organisations apply for Excellence Through People in order to:
- access a practice framework for improving business performance and competitiveness
- put proper HRM systems in place for growth
- benchmark the organisation against the best in sector
- get an independent assessment of their systems
- recognise the contribution made by staff to business success
- position the organisation as an employer of choice
- add value to the bottom line
- align HR activities with business strategy
Excellence Through People a win-win for Employers, Employees and Ireland:
Benefits for Employers Benefits for Employees
§ A framework for planning your future strategy * Increased Job Satisfaction
and actions;
§ Benchmarking against best practice in your * Better Communication and
industry sector; involvement
§ A structured way to improve the effectiveness * Increased Morale
of communications, learning and development;
§ A framework to identify statutory compliance – * Better Skills
health and safety law, employment law, freedom
of information and consultation directive; * Recognition
§ An independent evaluation of systems and * More focussed training and
processes; development
§ Continuous improvement and the opportunity * Pride in being part of a
to stretch business goals; successful organisation
§ Improvements in staff retention and recruitment; * Continuous self improvement
§ Bottom line results -
Excellence Through People is all about innovative programmes of employee participation and involvement. According to the NCPP ‘in companies where partnership is practised, workers, unions and management are not just the instruments for change; they are the ‘thinking core’ of the organisation.
