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Businesses in the Midlands need to copy their counterparts in the US when it comes to getting the best return on investment in people, according to PricewaterhouseCoopers.

Human resources experts at the professional services firm say companies need to start looking across the pond for alternative ways to maximise human capital.

A report released by PwC shows between 2002 and 2006, HC ROI (human capital return on investment) rose by 4.6 per cent in the UK but leapt by 19.8 per cent in the US over the same period.

In 2007, when the first signs of slowdown emerged in some economies and with markets suffering in 2008, the index fell in the UK by 2.8 per cent but held steady in the US.

Robbie Wigley-Jones, human resource services partner at PricewaterhouseCoopers LLP in the Midlands, said: “US firms have proved better at flexing employment costs to market conditions. Less prescriptive rules have allowed them to adjust staff numbers and salaries where necessary. The impressive return on investment levels is starting to feed through to the dollar.

“For Midlands companies, the more regulated environment prevents such agility. Firms here will need to find other ways to improve staff returns to compete globally with their more aggressive competitors.”

The company has also announced that three directors from the Birmingham office of PwC have been promoted to partners within the firm.

Effective from this month, Yvonne Cypher, Matthew Ryan and Jonathan Cooper will join a further ten PwC employees who have been promoted to directorial roles in the Midlands.

Mark Smith, regional chairman for PwC in the Midlands, said that the promotions will “further strengthen our team across a range of disciplines in the region”.