ADVISORY,
CONCILIATION AND ARBITRATION SERVICE News Release issued by The
Government News Network on 14 November 2007
Every pound of
taxpayers' money invested in employment relations service
creates over £16 return
A new independent study has revealed the positive impact that the
employment relations service Acas is having on the UK economy.
Research published today by the National Institute of Economic
and Social Research, available at http://www.acas.org.uk, shows
that for every pound spent by Acas, over £16 is returned,
generating benefits worth almost £800 million a year across UK
businesses, employees and the economy.
The report, which analysed Acas' six principal service
areas, found that Acas work in resolving individual and collective
disputes at work produced immediate savings to the economy of £313
million, while the advice and guidance provided to employers and
employees contributed a further £475 million.
Savings in management time, and reductions in recruitment,
absence and other employment costs were amongst the benefits for
businesses from working with Acas while employees benefited
particularly from better employment prospects and avoiding a loss
in earnings.
Minister for Employment Relations, Pat McFadden, said Acas played
a valuable role in helping disputes get resolved in the workplace
with positive benefits for the economy.
"Employment disputes are stressful for employees and costly
for business. It is in everyone's interest to resolve
problems quickly and without involving Employment Tribunals
wherever possible. Acas' services help to promote solutions
which benefit everyone involved."
The report focuses on the direct and immediate benefits of Acas
interventions. It does not examine in detail the longer term and
wider economic advantages of a better employment relations
climate. However the latter are likely to show further benefits
worth hundreds of millions of pounds resulting from the work
undertaken by Acas staff.
Ed Sweeney, Acas Chair, commented: "In business terms, this
level of return is impressive and testament to the expertise and
diverse services being delivered by Acas.
"As well as generating direct advantages to balance sheets
and the economy, this research underlines that 'a business is
only as good as its people'. Our experience tells us that
businesses will reap significant short and long term benefits by
creating a healthy, happy and positive work environment."
Pamela Meadows, author of the report said of the research:
"My estimate of the economic impact of the work of Acas
represents a minimum, not least because it does not take into
account the potential for long-term improvements in productivity
and investment as a result of better relationships in the
workplace. It is also clear that the benefits of Acas intervention
are spread well beyond those most immediately involved in
workplace conflicts."
Notes to editors:
1 Acas' aim is to improve organisations and working life
through better employment relations. It provides information,
advice, training and a range of services working with employers
and employees to prevent or resolve problems and improve
performance. It is an independent statutory body governed by a
Council consisting of the Acas Chair and employer, trade union and
independent members.
About the report:
"A Review of the Economic Impact of Employment Relations
Services Delivered by Acas" was carried out by Pamela Meadows
at the National Institute of Economic and Social Research and
published in November 2007.
Acas National
Brandon House, 180 Borough High Street, London
SE1 1LW
http://www.acas.org.uk