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Progressive people tactics send productivity soaring

first_imgProgressive people tactics send productivity soaringOn 19 Nov 2002 in Personnel Today Organisations employing progressive people management practices benefit fromsignificantly higher business performances, new research finds. The study of 688 UK aerospace companies shows the use of practices such as profitsharing, high levels of training, performance-related pay and effectiveinternal communications, result in more added value per employee. The research by the Society of British Aerospace Companies (SBAC) finds thatfirms with these high performance work practices in 1999 benefited from £68,000value added per employee in 2002, compared with £42,000 for firms that had notadopted progressive people management policies. Marc Thompson, who conducted the five-year study, said the research alsoreveals that the gap between organisations that have reaped the benefits ofinvesting in effective people management and those that have not, is actuallywidening. “Companies making the most intensive use of high performance workpractices are devoting 2.6 times more of their total wage bill to training thanthose not using these practices, and this is clearly paying off in terms ofproductivity,” he said. “The gap in training investment between firms making high or low use ofhigh performance practices widened from 48 per cent in 1997 to 159 per cent in2002.” John Rivers, HR director at Rolls-Royce and chairman of the SBAC managementboard, believes this gap must be closed if the UK is to make significantproductivity gains. “There is a risk that the consolidation and rationalisation we haveseen in the UK industry is leading to a two-tier aerospace structure, wheresome firms are able to invest in human capital and others are unable orunwilling to do so,” he said. “We must tackle these human capital issues by working with trade unionsand the Government to ensure workplace innovations are introduced. Our futuresdepend on building a world-class, high performance aerospace industry.” By Ben Willmottwww.sbac.co.uk Previous Article Next Article Related posts:No related photos. Comments are closed. last_img read more

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Flexible work law to cause mass upheaval

first_img Previous Article Next Article Comments are closed. Flexible work law to cause mass upheavalOn 1 Apr 2003 in Personnel Today More than half of employers have had to change procedures to satisfy the newlegislation on the right to request flexible working, a new survey suggests. Many employers, in the poll by Linklaters, thought the new legal process –which came in on 6 April – will be more unwieldy than current practices onhandling flexible working requests. The key findings were: – 82 per cent of respondents already had a formal flexible working policy – Three-quarters said the new legislation would not make them more likely togrant a flexible working request, as they had their own policies – Seventy-one per cent will introduce a formal appeals procedure for whenrequests to work flexibly are denied. Related posts:No related photos.last_img read more

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