Enhancing performance with Investors in People recognition: exploring the alleged link

Abstract

PurposeTo explore the alleged causal link between Investors in People (IIP) recognition and improved business performance and profitability.Design/methodology/approachFour in‐depth case studies using semi‐structured interviews are used to gather the appropriate data.FindingsThe data collected 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. Thus, the findings point to a complex amalgam of factors at play in the micro and macro environments of the organizations studied rather than just an IIP‐profit/performance cause and effect nexus. In consequence, the reasons for these IIP recognized organizations performing better than non‐IIP organizations were due to their efforts prior to recognition and not because of it.Research limitations/implicationsFurther research is needed to explore and generalize the rhetoric and realities behind the alleged causal link between IIP recognition and increased business performance and profitability.Practical implicationsHR practitioners and managers need to exhibit caution before considering IIP recognition. The potential benefits suggested by advocates of the standard are not guaranteed, regardless of any alleged casual link.Originality/valueThis gives HR practitioners and managers a valuable and timely alternative discourse and perspective when considering employee development towards IIP recognition and the possibility of improved business performance and profitability.