How Human Resources Can Improve Your Bottom Line

06.30.16_Most profitable companies point to the proper management of their human resourcesMost profitable companies point to the proper management of their human resources (HR) when discussing the secret to their success. Strategic HR objectives and goals that tightly align with company goals are those that support organizational objectives such as profitability, business reputation, and principle values. Human Resources isn’t just a place to go when troubles arise, it is a vital department within companies that is often underutilized.

Human Resources can, and should, be aligned with the strategic plan of a company. A company’s goals of profit, brand recognition, and market share are helped when HR can get employees to make things happen in a productive way.
Here are five areas HR can help fulfill company goals.

Staffing objectives

HR managers’ first concern should be to ensure the company is properly staffed. This requires a complete understanding of the company’s objectives in order to properly fill each position and design organizational structures that identify the type of contact different employee groups will work under. Only then can the right people be recruited and developed that allow the company goals and objectives such as profitability to be met.

Employee engagement

HR objectives should always include activities designed to improve employee engagement. As research indicates, engaged employees are more productive employees who have “bought-in” to the objectives, goals, and vision of the company. Measuring employee engagement can be difficult; however, it is clearly visible when there is an absence of employee engagement. Human resources managers should have a pulse on the employee engagement and design programs that will influence employees in a positive manner.

Cross-function training

Long-range planning is an essential element of an HR manager’s job. As such, cross-function training has become a popular trend in HR circles because it allows companies to take employees and train them resulting in a broadening of skills and expertise. By increasing the number of different jobs employees can perform, HR managers are strengthening the organizations’ continuity plan in case employees are unable to fulfill their responsibilities for one reason or another. Another benefit is increased profitability because a company can shuffle qualified employees around which minimizes hiring costs.

Data management

HR managers are responsible for facilitating the smooth operation of the company. They must maintain accurate and inclusive data on all employees. This includes employee performance reviews; contract and conditions of employment; training and attendance records and their personal information. Precise record keeping is necessary to ensure there is compliance with legal regulations.

Succession planning

A common HR strategic objective is to ensure the company’s staffing capabilities are able to meet future needs. In order to develop a quality succession plan for future employee movement, HR managers need to regularly assess the workforce skills and qualifications of current employees. Succession planning identifies employees who show the skills and qualities necessary for upward movement in the company. Once identified, HR managers can provide these employees with the training necessary to transition into higher-level positions.

A diverse, structured, and well thought out HR strategy that is well managed is essential to a company’s success. If you’d like to discuss more areas HR can boost your bottom line, contact us for a free, no-obligation consultation.

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