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How HR can add value to the business bottom line?

As what John Schwarz, CEO & Co-Founder of Visier, once said, “When done optimally, workforce planning is a collaborative, bottom-up effort between HR, Operations, and Finance.” The goal of every HR department is to ultimately hire the best candidates. Candidates whom are willing to invest into the organization, going beyond and above to get the job done. Candidates that can ensure customer satisfaction and more importantly, increase the organisation’s profitability.

Align your HR strategy and business strategy

The biggest mistake that the HR department can ever make is failure to work together with the respective department heads. Before the HR department can even take the first step towards workforce planning. they need to understand what are the business strategies for each department. Does the finance department really need that additional headcount, or is it more cost effective to train in-house talents? Understanding the business strategies that each department can allow the HR department to better align and strategize their HR plans for the organisation.

Target the right talent

Are your recruitment drives attracting the right talents who are willing to invest the time and effort into the organisation? Or it is simply a waste of time and effort that does not contribute to the organisation’s revenue? It is important to find out how the new hires are affecting the organisation’s profitability. Understand from the hiring managers what type of skill sets or qualities that they are looking for in a particular candidate. This can help narrow do the recruitment process and ensure that you are hiring from the right pool of talents for your organisation.

Encourage competitive learning

Employees are the heart of every organisation. Therefore, it is the HR department’s responsibility to come up with efficient training roadmaps to ensure the every employee is well-equipped with the appropriate skills that translates to the organisation’s profitability.

Invest in good leaders

Great leaders are the key drivers of revenue growth in any organisation. These leaders are also one of the main factors in employees’ performance. A good leader should serve as a role model to inspire his peers, co-workers and subordinates as well. However, all leaders need to be provided with the opportunities to be groomed. Talent-management programmes and leadership workshops should be organised to retain these potential top performers. After all, it is easy to draw a connection between great leaders and their attributes with increase profits within the organisation.

Focus on employee performance

The singular goal of the HR department is to ultimately ensure that employees perform better with the business growth in mind. Connect with your employees through their managers, and feedback sessions. Constantly work to improve the organisational processes and culture. Employee performance will affect productivity which has a direct impact on the organisation’s business.

There are many different ways that the HR can improve the business bottom line. More importantly, can your HR department build an actionable and beneficial strategy to achieve this goal?

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