A report published by the Confederation of British Industry (CBI) has suggested that UK businesses could potentially add up to £110 billion to the UK economy by ‘improving their people management practices’.
The report stated that employers understand the importance of effectively leading and engaging with their employees.
However, the report also suggested that firms ‘do not have effective ways to measure and benchmark their people management performance’.
The CBI has outlined a handful of ‘key habits’, which are designed to help businesses improve their people management practices. These include setting people management targets; making the Board accountable for these targets and ‘communicating openly’ with employees about the firm’s performance; and linking the business’s reward strategy for line managers with their people management performance.
‘It’s no secret that UK productivity has been stubbornly flat since the financial crisis,’ said Carolyn Fairbairn, Director General of the CBI.
‘If we want to breathe new life into the economy, then investing time, effort and resource in people is a great opportunity for business. Many are already doing this successfully, but it’s clear that firms should continue to up the game. The size of the prize from improving the management practices could be a massive £110 billion injected into our economy.’