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@cipdscotland | #cipdscotconf20 Submit your questions slido.com #cipdscotland B2 | Driving productivity through people Chaired by Edward Houghton Head of Research and Thought Leadership CIPD Productive Work sponsor

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Page 1: B2 | Driving productivity through people · Enterprise Partnership provide access ... • Responding to 4th Industrial Revolution & job design Productivity & People: some evidence

@cipdscotland | #cipdscotconf20

Submit your questionsslido.com

#cipdscotland

B2 | Driving productivity through people

Chaired by Edward HoughtonHead of Research and Thought LeadershipCIPD

Productive Work sponsor

Page 2: B2 | Driving productivity through people · Enterprise Partnership provide access ... • Responding to 4th Industrial Revolution & job design Productivity & People: some evidence

B2 - Productive work:

Unlocking innovation

and productivity

Page 3: B2 | Driving productivity through people · Enterprise Partnership provide access ... • Responding to 4th Industrial Revolution & job design Productivity & People: some evidence

CIPD Profession Map

Page 4: B2 | Driving productivity through people · Enterprise Partnership provide access ... • Responding to 4th Industrial Revolution & job design Productivity & People: some evidence

The challenge…

What role can people

professionals play?

Can people

professionals help to

improve productivity in

SMEs?

Page 5: B2 | Driving productivity through people · Enterprise Partnership provide access ... • Responding to 4th Industrial Revolution & job design Productivity & People: some evidence

People SkillsBoosting productivity by developing SME people management capability

Page 6: B2 | Driving productivity through people · Enterprise Partnership provide access ... • Responding to 4th Industrial Revolution & job design Productivity & People: some evidence

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Independent people professionals are a key part of the

HR, L&D and OD community:

- Diverse community spanning consultants who work

with blue chip firms, to local learning and

development experts who support growing

businesses.

- Most substantial group is small local/regional

business either one-person business or small

boutique people-services agency.

Independent people professionals

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• CIPD ran People Skills Pilots funded by

the JP Morgan Foundation 2016-2017

• 449 SMEs enquired and 416 participated

across Glasgow, Stoke and

Hackney(London).

• 90% satisfaction with service

• Transactional assistance: over 40% of

enquires related to contract and policy

review

People Skills: building capability through

digital and face to face intervention

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What are the common issues that

SMEs faced?

• In Glasgow:

• Just under 35% needed help with contracts and policies

• Around 9% needed help with workforce planning

• Rest of issues were fairly evenly spread

Page 9: B2 | Driving productivity through people · Enterprise Partnership provide access ... • Responding to 4th Industrial Revolution & job design Productivity & People: some evidence

9

How did SMEs find out

about People Skills?

Page 10: B2 | Driving productivity through people · Enterprise Partnership provide access ... • Responding to 4th Industrial Revolution & job design Productivity & People: some evidence

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What impact did People Skills have?

• In Glasgow:

• Just under two-thirds felt they had more awareness of business

support available to them.

• Around 78% felt it was more likely that they would further develop

their people management practices

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This project is designed to build on the evaluation of the People Skills

pilots to explore how hard to reach SMEs can be engaged with an

intervention designed to improve people management capability.

The key outcomes People Skills will aim to achieve are:

1. Evaluating communications methods for enrolling SMEs:

testing 4 types of message to “nudge” SMEs to participate in the

free-to-access intervention

2. Evaluating the impact of the free-to-access people management

support on key measures of performance and productivity: by

conducting difference-in-difference evaluation of the effect of the

intervention on SME people management practices

People Skills 2019-2020

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Supporting the network

CIPD has worked closely with the Greater

Birmingham Chambers of Commerce on

its Growth through people campaign to

boost leadership and management

capability.

Greater Birmingham and Solihull Local

Enterprise Partnership provide access

and support to a thriving network of SMEs

via the Growth Hub.

People Skills in Birmingham

Page 13: B2 | Driving productivity through people · Enterprise Partnership provide access ... • Responding to 4th Industrial Revolution & job design Productivity & People: some evidence

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People Skills: 2020

Page 14: B2 | Driving productivity through people · Enterprise Partnership provide access ... • Responding to 4th Industrial Revolution & job design Productivity & People: some evidence

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Online Diagnostic: simple online diagnostic

to provide traffic light guidance on areas of

development

People Skills consultants:

6 consultants delivering up to 2 days of free-to-

user advice and support

People Skills hub: online web resource of CIPD

guidance for SME owner managers

People Skills: 2019-2020

Page 15: B2 | Driving productivity through people · Enterprise Partnership provide access ... • Responding to 4th Industrial Revolution & job design Productivity & People: some evidence

Delivery until April 2020

Final evaluation May – July

2020

Publication of findings August

2020

People Skills 2019-2020

Page 16: B2 | Driving productivity through people · Enterprise Partnership provide access ... • Responding to 4th Industrial Revolution & job design Productivity & People: some evidence

People Skills Hub

Page 17: B2 | Driving productivity through people · Enterprise Partnership provide access ... • Responding to 4th Industrial Revolution & job design Productivity & People: some evidence

People Skills Hub

https://peopleskillshub.cipd.co.uk/

Page 18: B2 | Driving productivity through people · Enterprise Partnership provide access ... • Responding to 4th Industrial Revolution & job design Productivity & People: some evidence

Thank you for listeningEmail: [email protected]

@edhoughton1

Page 19: B2 | Driving productivity through people · Enterprise Partnership provide access ... • Responding to 4th Industrial Revolution & job design Productivity & People: some evidence

Click to edit Master title style

Driving Productivity Through People

Professor Graeme RoyCIPD Scotland Annual Conference

5th March 2020

Page 20: B2 | Driving productivity through people · Enterprise Partnership provide access ... • Responding to 4th Industrial Revolution & job design Productivity & People: some evidence

Scotland is a prosperous economy

Consistently the strongest part of UK outside London & SE

We benefit from substantial natural resources, a highly educated workforce and strengths in food &

drink, energy, precision manufacturing, financial services

Our employment rate – at 75% - is close to historic highs (average since ’92 is 71.6%); whilst

unemployment rate at just 3.5% is lower than UK figure of 3.8%

The Scottish economy

Page 21: B2 | Driving productivity through people · Enterprise Partnership provide access ... • Responding to 4th Industrial Revolution & job design Productivity & People: some evidence

But in recent years, growth in

Scotland has tracked at less

than 1%

Turning this around is crucial –

not just for earnings and

employment opportunities-

but wider inclusive growth

objectives

Productivity is key

Scotland’s long-term economic performance

Source: FAI calculations

Page 22: B2 | Driving productivity through people · Enterprise Partnership provide access ... • Responding to 4th Industrial Revolution & job design Productivity & People: some evidence

What is productivity?

Scotland in 2nd quartile of OECD countries –

with target to be in top 25%

Scotland’s productivity performance

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Top quartile 2nd quartile 3rd quartile Bottom quartile

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US

A=

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94

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100

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108

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2010 2011 2012 2013 2014 2015 2016 2017 2018

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Scotland UK EU OECD

Source: FAI calculations (OECD & SG)If anything, gap with best performing countries is

widening…

Page 23: B2 | Driving productivity through people · Enterprise Partnership provide access ... • Responding to 4th Industrial Revolution & job design Productivity & People: some evidence

Why this matters? Scottish Budget process

Barnett-

determined

block grant

Cut to Block

Grant to reflect

UK revenues

foregone

Revenues

raised from

devolved tax in

Scotland

Scottish

budget

Scotland’s Block Grant is now cut by a counterfactual estimate of tax revenues foregone by UK

Government

What is this counterfactual? Growth in devolved taxes per head in rUK

What matters therefore is how Scottish devolved taxes per head perform relative to rUK taxes

If Scottish revenues grow faster than rUK, Scottish budget is better off than without tax

devolution……..and vice versa

Page 24: B2 | Driving productivity through people · Enterprise Partnership provide access ... • Responding to 4th Industrial Revolution & job design Productivity & People: some evidence

Our economy is going through major structural – ‘grand challenges’ – that will shape our economic

future

Why this matters? Our changing economy

Page 25: B2 | Driving productivity through people · Enterprise Partnership provide access ... • Responding to 4th Industrial Revolution & job design Productivity & People: some evidence

Traditionally we economists have focussed upon understanding how productivity performance through

‘economic’ factors….such as levels of investment, innovation, quality of infrastructure

“Good work at a good wage”: Andy Haldane

The role of people in driving productivity

But growing recognition that crucial to our

performance is the importance of

i. agile and high performing businesses

ii. highly quality, inclusive and engaging work

Page 26: B2 | Driving productivity through people · Enterprise Partnership provide access ... • Responding to 4th Industrial Revolution & job design Productivity & People: some evidence

Economists have explored link between pay and productivity

• ‘Efficiency wages’

But what about the link between productivity and work quality?

Two-way street

• More productive firms can invest in enhanced security, training and engagement etc

• Higher quality work can spur greater satisfaction, motivation, innovation

• ‘Efficiency work’

Productivity & People

Page 27: B2 | Driving productivity through people · Enterprise Partnership provide access ... • Responding to 4th Industrial Revolution & job design Productivity & People: some evidence

Correlation between metrics of job quality and productivity

• Link appears stronger at lower end of the work quality distribution – see Carnegie/RSA (2020)

Link between poor performing firms and poor management quality

Diffusion of technology linked – not to development of technology – but in the people using it

• Scotland has outstanding R but less of D and/or use of R&D

• Employee engagement and innovation

• Responding to 4th Industrial Revolution & job design

Productivity & People: some evidence

Page 28: B2 | Driving productivity through people · Enterprise Partnership provide access ... • Responding to 4th Industrial Revolution & job design Productivity & People: some evidence

The Fair Work Agenda

Linking economy, labour market and

workplace

Holistic perspective - individuals, businesses

and society

Fair Work as driver of value and productivity

One part of a solution?

Good for individuals, families & communities

• In-work poverty

• Wellbeing

Good for business

• Better use of human capital

• Facilitates effective change & innovation

Good for society

• Reduce negative externalities

• Improves cohesion

• National economic performance

Page 29: B2 | Driving productivity through people · Enterprise Partnership provide access ... • Responding to 4th Industrial Revolution & job design Productivity & People: some evidence

Working with CIPD, we have just launched a new Hub – involving 7 universities across the UK – to

i. better understand the role of management practice and employee engagement in boosting

productivity in the UK

ii. work with companies, HR practitioners and employee organisations to develop best-practice and

learning from the research to inform day-to-day activities

Our new ProPEL Hub

Page 30: B2 | Driving productivity through people · Enterprise Partnership provide access ... • Responding to 4th Industrial Revolution & job design Productivity & People: some evidence

Click to edit Master title style

Driving Productivity Through People

Professor Graeme RoyCIPD Scotland Annual Conference

5th March 2020