High wages, stable contracts, full time . There is a link between human resource policies beneficial for employees and improved business productivity, according to a recent study by the INSEE.

Pamper your employees, they’ll revaudront. According to an INSEE study published in late February, the performance of a company are directly related to its pay policy. Thus, more employment conditions are good (high-wage, high proportion of CDI ), most business productivity increases, and vice versa. “It was noted that the model is not only going in one direction. There are interdependencies, “says one of the co-authors of the study, Vincent Cottet, attached to the Department of Economic Studies INSEE.

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“Take the example of wages. To ensure high wages, a company must be more productive, and to be more productive, it must hire competent employees, which necessarily entails a cost. Everything is a matter of priority. “Focus on profitability, that is to say its margins, or productivity (performance) will not in the same consequences on personnel management. Based on data collected in 2007 from 9,000 French companies over 50 employees, representing nearly 5 million employees, the survey thus establishes a classification of enterprises according to different criteria (salary levels, types of employment contracts, sectors, occupational categories, structure size, profitability, wage gap ).

It shows that the most productive firms are those which have a policy of high wages. Comprising 16% of companies studied, they are overrepresented among the major groups, particularly in sectors of industry and construction. “The bigger the company, the higher the salary level is important,” says Vincent Cottet. Furthermore, over two thirds of businesses, mostly SMEs, tend to favor stability of contracts and lower wages. Consequently, a performance slightly lower than average.

Conversely, the structures using mainly short-term contracts and a flexible workforce (9% of cases) have the highest profitability for productivity still below average. Sectors of the hospitality and retail are well represented and show above-average margins. “These figures should be analyzed carefully. There are in fact other individual factors that can interfere such as employee motivation, professional experience or its core competencies, “says Vincent Cottet.