Independent study reveals Acas adds 800m to UK economy

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 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 Acasí 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.

ìEmployment disputes are stressful for employees and costly for business. It is in everyoneís interest to resolve problems quickly and without involving Employment Tribunals wherever possible. Acasí services help to promote solutions which benefit everyone involved.î

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: ìIn business terms, this level of return is impressive and testament to the expertise and diverse services being delivered by Acas.

ìAs well as generating direct advantages to balance sheets and the economy, this research underlines that ëa business is only as good as its peopleí. Our experience tells us that businesses will reap significant short and long term benefits by creating a healthy, happy and positive work environment.î

Pamela Meadows, author of the report said of the research: ìMy 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.î