• Home
• About Us
• Our Work
• Publications
• Events
• Media Centre

• Media Releases
• "Boost Your Company's Productivity : Simple Steps Guide" - Publication by Forfas
• NCPP recognises DCU students
• Experts Call for New Approach to Workplace Learning
• EVENT ALERT: 'How To Make Learning Work' 18th February 2009
• Workplace Innovation Can Help Firms Beat Recession - NCPP
• Participatory Leadership Identified as Key to Public Service Reform
• Minister Launches New Dispute-Resolution Book
• Masterclass 2008: Brochure now available
• NCPP and NCI Call for Greater Focus on Learning at Work
• New Study Reveals Compelling Business Case for Workplace Partnership, Diversity and Equality
• EVENT ALERT: NCPP/NCI "Learning At Work" Seminar - 15 May 2008
• Annual Partnership Conference: Brochure Now Available
• Taoiseach Calls for Modernisation of Irish Workplaces
• New Research Finds 4 in 10 Irish Workers Want Greater Involvement in Their Workplace
• More NCPP Media Releases...
• UPDATE 9 Now Available
• Transforming Public Services Conference, Dublin Castle, 20th July 2009
• Media Mailing List
• Logo Downloads

New Study Reveals Compelling Business Case for Workplace Partnership, Diversity and Equality

Use of ‘High Performance Work Systems’ linked to:

• 14.8% growth in productivity
• Sales revenue of EUR 44,399 per employee per annum
• EUR 12 million in annual sales revenue
• 12.2% improvement in workforce innovation
• 7.7% reduction in employee turnover

Dublin, 22 January 2008 -- A new study of Ireland's top companies has confirmed a strong link between bottom-line business performance and the use of High Performance Work Systems (HPWS) in the workplace. High Performance Work Systems include strategic human resource management (staffing, training and development, performance management and remuneration, and communication and participation practices), partnership, diversity and equality strategies, and flexible working arrangements.

The findings offer fresh insights into how the effective management of people in companies can drive competitiveness in tangible ways such as improved productivity, innovation and employee retention.

The study, which was commissioned jointly by the National Centre for Partnership and Performance (NCPP) and the Equality Authority, was launched in Dublin today (22 January, 2008) by the Minister for Labour Affairs, Mr. Billy Kelleher, TD.

The report is based on a detailed survey of more than 130 of Ireland’s leading companies. The research team conducting the survey was charged with measuring the per-capita labour productivity of the companies in question, as well as their workforce innovation and employee retention rates, and of quantifying the proportion of these that could be attributed to the use of HPWS.

Their main findings were as follows:

• Labour productivity: The use of HPWS accounted, on average, for 14.8% of labour productivity among the survey sample. In terms of total economic value, annual productivity-per-employee was found to be EUR 299,992, of which EUR 44,399 per employee per annum was directly attributable to the use of HPWS. For the median-sized company in the survey (270 employees), this equates to an additional EUR 12 million in annual sales revenue.
• Workforce innovation: The use of HPWS accounted, on average, for 12.2% of workforce innovation, equivalent to sales revenue of EUR 2,061 per employee per annum, or EUR 556,200 in the median-sized company.
• Employee turnover: The use of HPWS accounted, on average, for 7.7% of variance in annual employee turnover.

The research team also established that productivity and other gains were at their highest when all four components of HPWS (strategic HR management, partnership, diversity and equality strategies, and flexible working arrangements) were employed together in a cohesive and synergistic manner, as opposed to the selective use of one or other of the components separately.

Speaking at today’s launch, Lucy Fallon-Byrne, Director,National Centre for
Partnership and Performance, said:

“Today’s report makes a particularly compelling business case for greater use of partnership and strategic HR practices across Ireland’s workplaces. It shows quite clearly the significant competitive advantage that companies can accrue by adopting more effective approaches to managing partnership and innovation in the workplace. Not only does the report give sustenance to our efforts to build Workplaces of the Future here in Ireland, it also breaks new ground in academic research by redefining our understanding of what constitutes high-performance work systems. The research team have done a great service to Irish business and to our general understanding of workplace-management systems.”

The report includes a specific examination of the diversity and equality theme. It found that in the samples of companies studied, diversity and equality strategies are associated with 6.5% of the variance in labour productivity across this sample; 7.9% of the variance in workplace innovation and 4.4% of the variance in employee turnover.

Niall Crowley, Chief Executive Officer of the Equality Authority, commented:

"This report establishes workplace equality and diversity strategies as a key component of High Performance Work Systems. This must ensure that the promotion of workplace equality and diversity now emerge as a priority focus in the implementation of the Government’s National Workplace Strategy. This report quantifies, for the first time in an Irish context, a compelling business case for companies to invest in equality and diversity strategies, and to integrate these strategies into their corporate strategy and culture. Equality and diversity strategies are now clearly associated with higher labour productivity, increased workplace innovation and lower employee turnover. A competitive Irish economy needs businesses committed to equality and diversity."

Minister for Labour Affairs, Mr. Billy Kelleher, TD, added that the report’s findings will inform the debate around the issues covered by the National Workplace Strategy:

“The National Workplace Strategy focuses on stimulating workplace change and innovation, and recognises the critical role that social partnership can play in this process. The new Report on High Performance Work Systems highlights the benefits of developing general and HR management capabilities for Irish business and employers, and demonstrates the practical rewards that companies can gain by becoming more open to partnership, innovation and change as we move forward. I believe that this Report, in reinforcing and building on the existing evidence, is essential reading for all Irish companies and all of us who are committed to maintaining and improving productivity and competitiveness.”

The report was compiled by a team of academics from Dublin City University, University of Limerick and Kansas University, led by Professor Patrick Flood of DCU Business School together with Professor Jim Guthrie, Kansas University, and Dr Victor Liu, University of Limerick.

The survey sample of 132 companies was drawn from the Irish Times Top 1,000 Companies database, a representative, multi-sectoral set of Irish-based businesses. The sample included both indigenous and foreign-owned companies with operations in Ireland. 1005 companies were initially invited to participate in the survey, of which 241 companies responded. Data was utilised from the 132 companies that completed both a CEO/GM and HR survey questionnaire, resulting in an overall response rate of 13.2%. This rate is consistent with typical response rates for research of this nature.

The profile of participating companies is commensurate with the general profile of medium-to-large industries in Ireland: approximately 50% are in service industries, 38% in manufacturing, 8% in construction/civil engineering and the remainder in agriculture/forestry/fishing. 50% of the companies are indigenous Irish-owned businesses and 50% are subsidiaries of foreign companies.

Trade unions represent 33.7% of participating companies’ employees. The average company has been established for 37 years and the median number of employees is 270.

NOTE TO EDITORS

National Centre for Partnership and Performance
The National Centre for Partnership and Performance (NCPP) was established by Government in 2001 to promote partnership-led change and innovation in Irish workplaces. It was placed on a statutory footing in 2007 as part of the new National Economic and Social Development Offices (NESDO). For further information, please visit www.ncpp.ie or www.workplacestrategy.ie

 

Equality Authority

The Equality Authority was established by statute in 1999 to promote equality of opportunity and combat discrimination in the areas covered by the Employment Equality Acts and the Equal Status Acts. For further information, please visit www.equality.ie

MEDIA ENQUIRIES

For further information, please contact:

Conor Leeson
Head of Communications
NCPP
Tel: 01-814 6398 / 086-211 9511
email: conor@ncpp.ie              

Patrick O’Leary
Press Office
Equality Authority
Tel: 087-684 8552
email: poleary@equality.ie

SPEECH

Please click here to access the full text of Minister Kelleher's speech.

DOWNLOAD

Please click below to download a copy of the new report (.pdf format).

• New Models of High Performance Work Systems
• Details: pdf | 1303kb | HPWS Final Jan 2008.pdf

Download Instructions
This press release is an Adobe PDF document. It requires the free Adobe Reader plugin to view.