HR Software News

Investing in personnel 'is the key to a successful business'

Posted by Editorial Team

Engaging with personnel has been described as something all companies need to ensure they are doing if they wish to boost their business.

Managing director at Peoplessentials.co.uk Michelle Bailey explained how it is important firms see their employees as more than just a resource.

By treating them as individuals, organisations were advised they will be far more likely to get a positive response from their teams.

"When both the organisation and the individual are getting something out of the business and when everybody aligns in that way, you end up getting a better performance," Ms Bailey remarked.

It was claimed that personnel are more likely to "give that bit extra" and go out of their way to ensure targets are met and a high level of service is delivered.

The expert added: "It's proven to deliver higher profits, higher sales, less accidents, lower absenteeism and so on."

While all companies should aim to have good engagement with their staff, it was suggested that small and medium-sized enterprises (SMEs) are the best suited to take advantage of this.

Unlike larger firms, SMEs may find it easier to establish proper relationships with employees, as they have a small workforce and so more time can be devoted to each member of staff.

Ms Bailey explained how such businesses are often the "leaders for engagement", as they have different strengths to large corporations.

"Things like being able to communicate more easily, taking more risks, taking more initiative - things that naturally, SMEs can do," the specialist remarked.

The comments follow recent research commissioned by the Chartered Quality Institute (CQI) and the Chartered Management Institute (CMI) that showed in 2011 quality management practices contributed £90 million to Gross Domestic Product.

According to the report, organisations that implement quality management could expect an average return on investment of 6:1.

CMI chief executive officer Ann Francke claims the research shows the value to UK employers of raising the standard and adoption of quality management.

"At a time when controlling costs and maximising return on investment is at a premium, quality management programmes have a critical role to play," she stated.

However, it was noted that in order to achieve this level of progress, companies must invest in their people.

Ms Francke explained that introducing leadership development and engaging with employees is vital to ensure quality employees.

This way quality systems and quality people can work "hand in hand to deliver the business results".

Chief executive officer of CQI Simon Feary claimed that as well as demonstrating the "enormous contribution" quality management delivers, the research shows it has great potential for the economy.

"These findings should send powerful messages to organisational leaders, that quality management needs to be fully implemented in, and across, all organisations and to policy makers that they need to create an environment in which quality management is encouraged and can thrive."

The research also revealed that 93 per cent of UK business leaders believe that quality management is a key driver of business success and said to help with cost savings of 4.8 per cent.

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