Investors in People: the chicken and the egg: HR specialists should be cautious about claims for the standard

Abstract

Purpose

This paper aims to explore the alleged causal link between Investors in People (IIP) recognition and improved business performance and profitability.

Design/methodology/approach

Draws on information from three case studies using semi‐structured interviews.

Findings

Challenges the direct relationship frequently proposed between IIP recognition and increases in business performance and profitability. Although it could be argued that changes are usually necessary in companies in order to align the organization with IIP standards and requirements, the cases explored instigated such changes independently of the pursuit of IIP. Only after these changes had taken place did the organizations consider a pursuit for IIP recognition.

Practical implications

Demonstrates that HR specialists need to be cautious before considering IIP recognition. The potential benefits suggested by advocates of the standard are not guaranteed, regardless of any casual link.

Originality/value

Gives HR specialists a valuable alternative perspective when considering employee development towards IIP recognition and the possibility of improved business performance and profitability.

Citation

Smith, S.M. (2009), "Investors in People: the chicken and the egg: HR specialists should be cautious about claims for the standard", Human Resource Management International Digest, Vol. 17 No. 1, pp. 38-39. https://doi.org/10.1108/09670730910929459