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Small and medium-sized enterprises stand to benefit the most from Investors in People accreditation, which helps formalise SME business practices and boosts internal training.

That is the conclusion of a report on the benefits of the Investors in People service by the Confederation of British Industry. In its first education and skills survey, the CBI endorsed Investors in People for adding real value to firms through increasing the skills and engagement of employees.

Given this, the report recommends that SMEs should be the focus of government support for engaging employers in the standard. Seventy-one per cent of those surveyed by the CBI as part of the report felt that participation in the Investors in People scheme had had a positive impact on their business.

Over half of respondents saw the main benefit of the Investors in People standard as improved staff morale, 52 per cent, while under a third, 30 per cent, recognised improved performance and nearly a quarter, 24 per cent, saw efficiency improvements.

Richard Wainer, head of education and skills at the CBI, said: "The CBI/Edexcel education and skills survey highlights that businesses often find that working with Investors in People delivers bottom line benefits, particularly for small and medium-sized firms that need extra support in formalising their people management in line with their business goals. Nearly three quarters of respondents felt the Standard had a positive impact on their business. Investors in People also offers larger firms a valuable framework, as well as stretch and challenge."

The report also concluded that employees benefit from the Investors in People framework particularly during times when the business is undergoing significant and rapid changes, helping all employees contribute more effectively to a shared goal.

Simon Jones, chief executive of Investors in People UK, said: "With businesses operating in an increasingly challenging climate, it is vital that they are able to adapt quickly and effectively to shifting priorities. Having the right structures in place which allow this flexibility while also ensuring employees remain focused and motivated is crucial and can make the difference between business success and failure."