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Human resources contribute to the success of an organisation though their skills. According to the ability, motivation, opportunity (AMO) model, employee contributions to organisational performance depend on their skills, their motivation to draw on their skills, and the opportunities to do so. Organisations can adopt managerial approaches cultivating ability (A) by facilitating learning, creating opportunity (O) by providing employees with autonomy, and encouraging motivation (M) by leveraging monetary and non-monetary motivational drivers.

This report is based on the 2019 European Company Survey (ECS 2019). It shows that managerial approaches cultivating AMO are positively linked to establishment performance, and that these approaches are driven by an organisational culture that values employees as an asset to the organisation. People-centred managerial approaches that harness workplace wellbeing are central to the mechanism linking human capital utilisation to business outcomes.

The economic and labour market contribution of international businesses is well recognised, but policymakers could do more to help such enterprises to develop their activities. This policy brief explores the workplace practices in export-oriented establishments that may contribute to their success. It also identifies aspects of their workplace practices that can result in ‘win–win’ outcomes, ones that are mutually beneficial for employers and employees. The analysis identifies autonomous multicultural teams dealing with the international business administration as a common feature of export-oriented establishments. It discusses the skills needs of these teams, and how establishments recruit and train their members. Employee participation in organisational decision-making is found to be an important mediating factor for work organisation.

The EU has long supported innovation in business and in workplaces. The challenges facing Europe as it emerges from the COVID-19 crisis make the need for innovation more urgent. The NextGenerationEU recovery package requires a reorientation of business activities towards innovation for resilience. Looking to the longer term, policies such as the European Industrial Strategy aim to support the transition to a green and digital economy.
Against this background, this policy brief investigates the workplace practices of innovative companies and examines the evidence linking them with innovation. These practices aim to encourage employees to work and problem-solve independently, to develop their skills, to include them in organisational decision-making, to motivate them to surpass their job description and to reward them for doing so. Analysis of these workplace practices can improve understanding of how they contribute to increasing the innovation potential of companies. It also provides an evidence base to support the work of policymakers and practitioners.