Great People Management Brings Bottom Line Results

A report released by the Boston Consulting Group (BCG) and
the World Federation of People Management Association has
found that companies with stronger people management
programs and skills consistently record remarkably
stronger financial performance.

The report examined over 100 companies and surveyed 4,300
managers who were asked to rate their company on 22 HR
practices. BCG then conducted an independent review of
the companies’ financial performance.

As part of that review, BCG reviewed Fortune’s list of the
“100 Best Companies to Work For.” Those that consistently
landed on the list outperformed the S&P 500 eight out of
ten years.

The study found that revenue growth was 3.5 times higher
and profit margins were 2.1 times higher for companies
with better people management programs than for those with
poor people management skills.

HR POINTER: Numbers drive the business, but people drive
the numbers.

An emphasis on leadership development, talent management,
recruiting, onboarding, retention, employment branding,
rewards, and performance management were particularly
important people management programs.

As noted by Roselinde Torres, a managing director at BCG,
“What we’re seeing in companies that are higher performers
is that they take their people investment much more
seriously. Companies that are more complacent are going
to find themselves without the best top-tier talent.
They’ll be good, but they won’t be great.”

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