When you think about profit centers in your organization, no doubt the HR function doesn’t cross your mind. But realistically speaking, this function plays a vital role in driving profits in your business, albeit indirectly.
Having an efficient HR can improve your organization’s effectiveness and consequently boost your profits in amazing ways. Being able to source and retain a highly-skilled and productive human capital can see you build a strong organization that rakes in a fortune year in, year out. But as much as this sounds like a plug-and-play solution, without a proper strategy and consistent HR best practices, it may be an elusive dream for many businesses.
So, how can you create a first-rate HR that improves your bottom line? Below are four tips.
Capitalize on HR Software
Technology and efficiency are two terms that go hand in hand. Businesses that have embraced technology are reaping big in terms of efficiency. With innovations that help eliminate the inefficiencies of manual processes, tech-savvy organizations are posting impressive productivity.
The HR industry is one area that has benefited from the blooming business innovations. With several workforce management tools available to cater to different HR needs – administration, learning management, talent management – they can implement better labor practices and boost employee productivity.
One area in which HR software beats the old manual system is in providing real-time metrics. From one central software, HR staff can recruit, monitor, and evaluate employee performance, roll-out and manage learning, manage employee data, and pull crucial reports for performance evaluation and decision making.
In a nutshell, integrating the workforce management tools into your HR function is a smart way of maximizing your human capital while trimming costs, which ultimately reflects on the bottom line.
Improve Employee Engagement
Engaged employees are a treasured business asset. As you seek to create a first-rate HR, focus on improving employee engagement. Studies have linked employee engagement with improved productivity.
This is true, for obvious reasons. Engaged employees are committed to their employers’ success, so they often go beyond what is expected of them when executing their duties. Because they feel like a part of the business, they dedicate themselves fully to its goals.
Your HR function can put mechanisms in place to create a culture that promotes employee engagement. This has to reflect across the entire organization. Otherwise, there’s little your HR can do on its own.
One way of fostering employee engagement is by building trust. To earn the trust of your employees, you need to be transparent and honest. For instance, you can cultivate an open communication environment where you consistently keep the employees informed about your plans and other essential business issues they need to know. On the other hand, you should encourage the employees to freely share their opinions and feedback.
When you have a culture of open communication, where everyone shares important business information and ideas freely, the employees will feel valued and trust you. The good thing about winning your employees’ trust is that it assures you of their support if the business hits a rough patch. You wouldn’t have to fear sharing bad news with them because you know they’re highly likely to rally behind you and work harder to get the business back on its feet.
Other effective ways to improve employee engagement are acknowledging good performance, promoting work-life balance, offering growth opportunities, etc. As simple as these actions may appear, they can make the employees feel valued and want to commit more to their jobs.
Ethics are an integral part of business success. The absence of ethics in a business exposes it to many pitfalls – legal and otherwise. Your leadership should demonstrate high ethical standards, which should then be cultivated down to the employees.
Ensure your leadership is transparent, accountable, and understanding. This way, you will come across as dependable and trustworthy. Consequently, your leadership will be more effective and capable of building strong, engaged, and productive teams.
It’s also crucial to keep taps on the local and state laws so that you always remain compliant. Being compliant not only reflects well on your integrity as an organization, but it ensures you’re providing your employees and clients the best experiences, as set by industry regulators. Compliance also saves your business from legal suits and associated costs, which may affect your reputation, operations, and ultimately your bottom line.
Invest in Training and Development
Having a skilled workforce can significantly boost your bottom line. You can be able to secure a highly-skilled talent from the onset by adopting an automated recruitment process. But with the ever-changing industry trends, your workforce needs to engage in constant learning and development to match the growing career demands.
Continuously carry out a skills mapping to assess your human capital’s strengths and identify gaps that need to be filled. With the use of learning management software, you can easily monitor your employees’ training needs and offer the right resources to meet them. The learning management software provides metrics that can help you measure the impact of the training on your employee’s productivity and the corresponding effect on profitability.
Investing in employees’ training and development has a positive impact on the overall organization’s growth. When you provide your employees with training opportunities, they feel valued. As a result, they become engaged, and this leads to increased productivity.
By adopting a culture of continuous learning, you will have a highly-motivated team with market-relevant skills. This can position your business on a path of perpetual growth as their productivity continue to impact your profitability.
Achieve First-Rate HR With Our Plug-and-Play Solution
Indeed, stepping up your HR function to maximize the human capital can translate into massive profits for your business. By capitalizing on HR software, you will have an efficient way of acquiring, retaining, and equipping your workforce for maximum productivity. Combined with ethical leadership, you can be able to nurture engaged employees, remain compliant, and curb organizational inefficiencies that are synonymous with a weak human resource.
At Platinum Group, we can help you break down this complex business responsibility and maximize your HR with a plug-and-play solution. Our software empowers you to run your HR function from one centralized place, thereby maximizing your entire team’s productivity. Want to learn more? Schedule your free consultation today.