(From Workforce.com) -- Although some organizations have cut corners when it comes to investing in talent, a survey of top-performing companies has found that's not the best way to boost the bottom line.

Companies with stronger people-management capabilities consistently record remarkably stronger financial performance, the report, "From Capability to Profitability: Realizing the Value of People Management," by the Boston Consulting Group and World Federation of People Management Associations, has found.

Revenue growth was 3.5 times higher and profit margins were 2.1 times higher that those of companies with poor people management skills, the report found. An emphasis on leadership development, talent management, recruiting, onboarding and retention, employer branding, and performance management and rewards were particularly important.

"What we're seeing in companies that are higher performers is that they take their people investment much more seriously," says Roselinde Torres, a senior partner and managing director at Boston Consulting Group.


The report, released in August, examined more than 100 countries worldwide and surveyed almost 4,300 managers from human resources and other fields, who were asked to rate their company on 22 HR practices.

While corporate managers rated their organization's people-management capabilities, Boston Consulting Group conducted an independent review of the companies' financial performance.

As part of that review, Boston Consulting reviewed Fortune's list of the "100 Best Companies to Work For." Those that consistently landed on the list outperformed the S&P 500 eight of 10 years. One company that has landed on the Fortune list year in and year out is the software company SAS Institute Inc., based in Cary, North Carolina.