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B2 | Driving productivity through people
Chaired by Edward HoughtonHead of Research and Thought LeadershipCIPD
Productive Work sponsor
B2 - Productive work:
Unlocking innovation
and productivity
CIPD Profession Map
The challenge…
What role can people
professionals play?
Can people
professionals help to
improve productivity in
SMEs?
People SkillsBoosting productivity by developing SME people management capability
6
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
7
• 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
8
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
9
How did SMEs find out
about People Skills?
10
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
11
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
12
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
13
People Skills: 2020
14
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
Delivery until April 2020
Final evaluation May – July
2020
Publication of findings August
2020
People Skills 2019-2020
People Skills Hub
Click to edit Master title style
Driving Productivity Through People
Professor Graeme RoyCIPD Scotland Annual Conference
5th March 2020
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
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
What is productivity?
Scotland in 2nd quartile of OECD countries –
with target to be in top 25%
Scotland’s productivity performance
0
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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…
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
Our economy is going through major structural – ‘grand challenges’ – that will shape our economic
future
Why this matters? Our changing economy
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
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
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
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
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
Click to edit Master title style
Driving Productivity Through People
Professor Graeme RoyCIPD Scotland Annual Conference
5th March 2020