Access the essential membership for Modern Managers
Investors in People (IiP) is the UK’s leading people management business improvement standard, designed to help organizations develop performance through their people. Achieving the IiP Standard can bring about a number of benefits to both organizations and employees. This article provides an overview of IiP and the Standard, as well as outlining some of the research that has shown the benefits of becoming an IiP accredited organization.
Background of IiP
The Investors in People Standard was launched in 1991 with a vision to:
“…increase the productivity of the UK economy by improving the way in which organizations manage and develop their people, leading to business improvement and better public services.” [1]
In 2010 the UK Commission for Employment and Skills assumed responsibility for the strategic ownership of IiP.
The Standard
The Standard has helped over 35,000 UK organizations to transform their approach to training and development by linking it explicitly to the needs of the organization. [2] With the continued growth and uptake of the Standard in the UK, international interest has been stimulated and continues to grow.
Three key principles The Standard is based on three key principles for people development: [3]
- plan (developing strategies to improve the performance of the organization)
- do (taking action to improve the performance of the organization)
- review (evaluating the impact on the performance of the organization)
To achieve the Standard, organizations are required to meet 39 evidence requirements (37 evidence requirements for non-unionized organizations) across the following assessment categories:
- Business Strategy
- Learning and Development Strategy
- People Management Strategy
- Leadership and Management Strategy
- Management Effectiveness
- Recognition and Reward
- Involvement and Empowerment
- Learning and Development
- Performance Measurement
- Continuous Improvement [4]
Further information on the IiP assessment process and a full list of the Standard’s evidence requirements can be found on the Investors in People website.
Beyond the Standard
Beyond the Standard was introduced in 2009 in order to recognize those organizations that perform above and beyond the requirements of the original Standard. Organizations that achieve: [5]
- the Standard plus 26 additional evidence requirements or more will be recognized as Investors in People Bronze
- the Standard plus 76 additional evidence requirements or more will be recognized as Investors in People Silver
- the Standard plus 126 additional evidence requirements or more will be recognized as Investors in People Gold
In addition to this, a long service award has been established in order to recognize organizations that have been IiP accredited for 10 years or more. Over 3,000 organizations have achieved the long service award so far. [6]
Benefits
A number of studies have been conducted to establish the benefits of achieving the Investors in People Standard. The findings include the following: [7]
- 76% of accredited organizations agree that IiP has helped to tackle skills gaps in their organizations
- 82% of accredited organizations agree that the Standard helps all types of organizations adapt to change and growth
- 97% of accredited organizations agree that achieving the Standard is recognition of a company's commitment to its employees
There is also evidence to suggest that IiP recognized organizations: [8]
- have more capable managers
- exhibit a stronger organizational learning culture
- deliver more effective managerial development practices
- develop a managerial context that encourages high performance working practices
- have managers that benefit from more autonomy and freedom to decide how to do their jobs
- generate higher management performance
- achieve high financial and non-financial performance
The Institute of Employment Studies conducted a study to examine the bottom-line benefits of becoming an IiP accredited organization. [9] It concluded that IiP accredited organizations generate higher gross profits per employee than non-IiP accredited organizations. Furthermore a typical non-IiP accredited organization has the capability of generating an additional £176.35 per employee in gross profits per annum, should they achieve the IiP Standard.
Summary
Investors in People provides organizations with a framework for improving organizational performance through a strategic approach to people development. Achieving the Standard can bring about a number of benefits, including increased profitability and performance. If you are interested in finding out how Investors in People can help your organization, please consult their website for further information.
References[1] As stated on the Investors in People website:
here (accessed 29 July 2023).
[2] Ibid.
[3] Ibid
[4]
here (accessed 29 July 2023).
[5] As stated on the Investors in People website:
here (accessed 29 July 2023).
[6] As stated on the Investors in People website:
here (accessed 29 July 2023).
[7] These are some of the conclusions of the Ipsos MORI IiP performance tracking surveys. These findings are available
here (accessed 29 July 2023).
[8] These are the conclusions of the Cranfield School of Management report ‘The Impact of Investors in People on People Management Practices and Firm Performance’, available
here (accessed 29 July 2023).
[9] These are the conclusions of ‘Does IiP Add Value to Business?’ by Marc Cowling of the Institute of Employment Studies, available
here (accessed 29 July 2023).
