Billions of pounds could be added to the economy if people management practices are improved, a new study suggests.
The Confederation of British Industry (CBI) said companies know the importance of engaging with and developing their staff.
Director general Carolyn Fairbairn said: “It’s no secret that UK productivity has been stubbornly flat since the financial crisis.
“If we want to breathe new life into the economy, then investing time, effort and resource in people is a great opportunity for business.
“Many are already doing this successfully, but it’s clear that firms should continue to up the game.
“The size of the prize from improving the management practices could be a massive £110bn injected into our economy.”
The report, written with the help of McKinsey, highlights the scale of the opportunity for firms’ performance if they adopt the habits of the most effective businesses.
It recommends setting people management targets and placing them on a par with company commercial targets, and linking a firm’s reward strategy for line managers with their performance on people management.
Over the last decade, labour productivity growth is lower than at any time in the 20th century.
PA
