Leadership development, talent management and performance management/rewards have been cited as pivotal areas when it comes to separating the corporate wheat from the chaff.
That's according to The Boston Consulting Group (BCG) and the World Federation of People Management Associations (WFPMA), cited by peoplemanagement.co.uk, which undertook a survey of 4,200 HR and non-HR managers worldwide in order to compare company proficiency in different areas.
The aforementioned three areas were the most decisive when it comes to separating high-performing and low-performing firms. In addition, the 'best' firms combine these practices in an integrated way rather than carrying out processes in a linear and separate fashion, adds the report.
Rainer Strack, senior partner at BCG and co-author of the report, commented on the findings: "Overall, what these findings reveal is that 'people' companies are far more proactive and more strategic about ensuring they have the talent they need - today and in the future."
Doing more across every aspect of a firm, from employer branding to employee retention, is also key, especially when a firm is aligning itself to be a people company, adds hrmagazine.co.uk.
Horacio Quiros, president of the WFPMA and another co-author, added: "We've always believed that companies that have good people-management practices perform better. But we now have uncontestable evidence of this correlation."