HR strategy is a major factor in building profits

first_img Previous Article Next Article According to a major new study by research organisation PIMS, HR accountsfor 15 per cent of profit performance. The figure is based on responses from 5,000 managers in profit-makingbusinesses, and looks at the impact of HR on the bottom line. The study breaks HR’s contribution down into several areas. It finds that a well-run, professional appraisal system can improve theperformance of individuals and subsequently the profitability of the business.However, there are as many badly-run formal appraisal systems – which have nobenefit to the business – as there are well-run appraisal systems. PIMS managing director Keith Roberts said the study shows the importance ofmanagement training. “The research demonstrates conclusively thatsignificant time spent on management training programmes improves profitabilityconsiderably and is an important catalyst for change,” he said. Duncan Brown, assistant director general at Chartered Institute of Personneland Development, said the findings back up previous studies. “There is a ton of data now that shows that HR affectsprofitability,” he said. “HR directors need to stick this informationin their chief executives faces.” Comments are closed. HR strategy is a major factor in building profitsOn 29 Apr 2003 in Personnel Today Related posts:No related photos.last_img

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