CIPD - Investors in People

Learning, training and development

Revised April 2008

This factsheet gives introductory guidance. It:

explains the essential elements of the Investors in People Standard
outlines the changes from the earlier versions and the reasons for these changes
summarises the assessment and recognition process
considers the benefits of recognition for organisations and their employees
includes the CIPD viewpoint.

Background

The Investors in People Standard is a national quality standard which sets a level of good practice for improving an organisation's performance through its people. It provides a framework for improving organisational performance and competitiveness through a planned approach to setting and communicating business objectives and developing people to meet these objectives.

The Standard was developed in 1990 by a group of organisations representing both employees and employers, and was launched nationally in 1991. In October 1993 Investors in People UK (IIP UK) was established as the body that would take responsibility for the Standard. Its purpose is to provide national ownership of the Standard and is responsible for its promotion, quality assurance and development. The Standard is subject to regular review and in November 2004 a revised Standard was launched, replacing the previous version (see below for details).

Other quality standards are covered in the factsheet on quality issues.

Go to our Quality standards and approaches factsheet

The updated Standard

The key principles

The Standard is based on three key principles:

Developing strategies to improve the performance of the organisation – an Investor in People develops effective strategies to improve the performance of the organisation through its people.
Taking action to improve the performance of the organisation – an Investor in People takes effective action to improve the performance of the organisation through its people.
Evaluation of the impact on the performance of the organisation – an Investor in People can demonstrate the impact of its investment in people on the performance of the organisation.

The indicators

The ten indicators are grouped under the key principles as follows:

Plan

A strategy for improving the performance of the organisation is clearly defined and understood.
Learning and development is planned to achieve the organisation’s objectives.
Strategies for managing people are designed to promote equality of opportunity in the development of the organisation’s people.
The capabilities managers need to lead, manage and develop people effectively are clearly defined and understood.

Do

Managers are effective in leading, managing and developing people.
People’s contribution to the organisation is recognised and valued.
People are encouraged to take ownership and responsibility by being involved in decision-making.
People learn and develop effectively.

Review

Investment in people improves the performance of the organisation.
Improvements are continually made to the way people are managed and developed.

What changes were made and why?

The current version of the Standard places new emphasis on employee involvement and on maximising their potential. It is designed to ensure that the it continues to offer relevant support to employers of all sectors and sizes. The structure of the Standard has been simplified and the changes focus on the key competencies managers need to ensure they are effective in the development of employees. It also encourages organisations to involve employees in decision-making. More emphasis has been placed on effective evaluation, encouraging organisations to understand the impact development is having on the organisation's performance and ensuring learning isfed back into the planning cycle. The changes are designed to ensure that the Standard remains a relevant, practical and flexible tool to support employers seeking to plan, implement and evaluate their business strategies.

Profile

The Investors in People Profile is a framework of good practice that provides further 'stretch' for organisations. It does this by going beyond the current scope of the Standard into broader areas of people management and development. Organisations can now opt for a Profile review at their first assessment. Profile is based on the same three principles as the Standard: Plan, Do, Review.

Models

IIP UK has worked with employers and other groups, including the CIPD, to develop a number of practical models that allow organisations to focus on particular areas. There are currently three models available:

Work Life Balance Model
Leadership and Management Model
Recruitment and Selection Model.

Organisations involved in guidance and assessment

Organisations that have a role in supporting the Standard include:

Quality Centres
Business Links
Local Learning and Skills Councils
Sector Skills Councils
Local Enterprise Companies (Scotland)
Education and Learning Wales (ELWa)
Department for Employment and Learning Northern Ireland (DELN).

Quality Centres are licensed by IIP UK on an annual basis to deliver assessment and recognition services throughout the UK. There are currently 10 Quality Centres in England and one each in Scotland, Wales and Northern Ireland. There may be some variation from region to region but typically organisatons can approach one of these to request advice in working towards recognition, or assessment against the Standard. One of the English Quality Centres is Investors in People Corporate Solutions (IIPCS), a national body specifically established to offer services to organisations employing 1000 or more employees.

Assessment and recognition as an Investor in People

Principles behind the assessment

It is based on the Standard.
The focus is on the enhancement of existing good practice and the introduction of structured improvements.
It looks at the evidence from the organisation and requires no specific documents or forms.
Although it is rigorous, it does not use a standard checklist. Organisations are encouraged to use the Standard to support its own infrastructure and in turn, the Assessor is able to apply judgement in all cases.

Key stages to recognition

Contact your local Business Link or Quality Centre for information and guidance on how your organisation can best use the Investors in People framework.
Compare your organisation to the Standard using the 10 indicators.
Ensure that senior management is fully committed to the Standard and understands its strategic implications to the organisation.
Using the Investors in People framework, develop an action plan which documents what you need to do to develop your organisation. Specialist advisers can help in designing and implementing the plan.
When ready to undergo an assessment, contact a Quality Centre who will assign an independent Assessor to visit your organisation. They will interview a representative sample of personnel to review your current practices against the Standard's evidence requirements. The Assessor prepares a feedback report with recommendations.
For those undergoing assessment for the first time, the Assessor's report is verified by a Recognition Panel.
Your organisation is given feedback on the assessment and informed of the decision.

How long will it take to achieve recognition?

The time taken to achieve recognition depends on many factors including:

the size and nature of the organisation
current practices and culture within the organisation
the resources which will be dedicated to the development programme.

IIP UK advise that it typically takes between six and eighteen months to prepare for assessment, but that benefits of adopting the Standard will be seen straight away.

How much will it cost?

The total cost of achieving Investors in People recognition comprises:

External costs: An organisation chooses whether to use specialist advice to diagnose and implement an action plan – the size and complexity of the organisation will determine the number of days required and charges for such services will depend on the provider. Business Links are usually cheaper than an independent consultant.
Internal costs: The cost of resources (people and materials) needed to set up and manage the development programme.

Problems which may delay or prevent Irecognition

As with other quality initiatives, it may be difficult to maintain the initial enthusiasm for the project, particularly when faced with other pressing short-term problems. Previously, organisations were asked to produce large portfolios of evidence. Organisations no longer need to produce such proof as Assessors now look for outcomes not processes.

Post-recognition review

Once an organisation has been recognised as meeting the Standard, recognition can be maintained through re-assessment at intervals not exceeding three years. This interval is flexible and organisations are permitted to request re-assessment after a shorter interval if circumstances make that desirable. Typically early reviews would be useful in the case of significant changes in the structure or activities of the organisation. Discussions with advisers at the local Business Link or Quality Centre will help to decide on the most appropriate timing for subsequent reviews.

Benefits for Investors in People organisations and their employees

As with other quality improvement programmes, the benefits of working towards the Standard are apparent as soon as the process starts. The discipline of examining the organisation and its practices contributes to improvements long before the standard is achieved.

For employees, the benefits are:

recognition and job satisfaction
better communication on training and development issues
a good and supportive working environment
improved skills, increased responsibility and involvement and better career development opportunities
pride in belonging to a successful organisation
good quality training where its needed.

For employers, the benefits are:

better morale and a motivated workforce
greater profits and outputs
training activity is more closely linked to business needs
impetus to other improvement and quality initiatives
customer satisfaction
positive publicity for the organisation.

CIPD viewpoint

CIPD believes that Investors in People has encouraged many organisations to look at their training and development processes in a more strategic and detailed way and is very supportive of this approach.

Useful contacts

Investors in People
Information on the ‘Profile’ tool
Business Link
Has contact details for local offices
Learning and Skills Council (national office)
Quality Centres
Contact details for the centres can be found on the Investors in People website

Investors in People