A Human Resources department is an integral part of a business’ overall success. Why? Because the HR team looks after the most important asset: your employees.
The human element of your business all works together to contribute towards achieving goals - however, people are not machines. They require support, encouragement, guidance and a strong culture to keep their productivity consistently high.
This is where the HR department makes the most impact.
Despite this, HR often gets overlooked and their valuable contribution to the business is underestimated completely. If you read our previous blog, It’s time to prove HR’s impact on business success, you will know how important it is for the HR team to step up and demonstrate how they help achieve ROI and revenue growth. (We highly recommend you read that blog). To build upon this, here is how HR departments can contribute to organisational and financial growth.
The modern role of the HR Department
Where is your business currently? Consider your recent successes and position in the market.
Ask yourself: how did we get here? The answer is your employees!
Now ask yourself: what’s going to have the most influence on taking your business to the next level of growth? The answer is still your employees!
The human side of business and the associated role of HR is frequently overshadowed by the more top-of-mind departments which bring in the money- namely Sales, Marketing and Customer Relations. But it’s essential now more than ever for organisations of all sizes to recognise the importance and relevance of HR departments in business growth too.
Your employees’ levels of productivity and innovation essentially determine where you’ll be in a year, five years, ten years, and well into the future. For more, listen to our Podcast here about The connection between Employee Productivity and Profitability. So, if your plan is to grow, it’s time to get behind HR.
The 7 ways HR departments contribute to organisational and financial growth.
1. Hiring the right people
First and foremost, the HR team is responsible for identifying the core needs of jobs within your business and then recruiting the ideal talent to fulfil each role.
Recruiting the wrong applicant can be very expensive, whereas the right person can help augment your current staff and generate effective output now and in the longer term.
2. Investing in your team
The HR Department are usually in charge of upskilling employee knowledge through training and educational modules which are designed to improve their productivity and overall satisfaction. These talent programs contribute to business growth by developing people into stronger performers.
3. Forward People Planning
When you invite your HR team to the boardroom to discuss future plans to expand, they can put together a corresponding strategy to prepare and facilitate this growth with the right teams within an ideal budget.
Employee turnover and absenteeism can be very costly for a business, as it disrupts productivity and requires resources to fix these gaps. However, a strong HR Department can put processes in place to keep team members happy and supported to minimize turnover.
5. Employee Diversification
HR aims to hire people from a wide range of experience and backgrounds which all come together to contribute to greater business success.
To learn more, read Why workplace diversity is important to business success.
6. Build your internal culture
Successful businesses always have a strong employee culture which encourages collaboration and cultivates passion to drive productivity. However, culture must be nurtured to be developed, and that begins with listening to employees.
7. Listen to employee feedback
To get the best out of your team and encourage strong output, it requires communication. Two-way communication where people can provide their constructive criticism which can help the business improve systems and grow.
For more, read why improving your corporate culture starts with employee feedback.
The HR department is important if you want your business to grow
As you can see, there are a lot of financial costs and benefits to an effective HR department – all of which can contribute to business success. So, let them!
Never forget that people are your greatest asset and that you need to take care of them if you want to grow your business.
So – how do you listen to your team and encourage greater levels of productivity? How can you learn from their feedback?
The answer: support your HR team. To gain the full benefits HR has to offer your business, it’s important to equip them with the right tools to manage and listen to your team.
How VibeCatch can help your HR team
VibeCatch is a Human Resources platform based on 15 years of proven research, offering you the opportunity to make a positive difference not just for everyone around you, but your business and customers too.
It’s simple and automated, which makes checking on your culture easy to ensure that your business is optimised.
How can your business benefit from a science-based approach?
We’d love to show you, so you can see it in action for yourself.
Book an obligation-free consultation and we’ll discuss your options to demonstrate how VibeCatch can help you help everyone.