How Can HR Increase Profits?

Business owners are constantly trying to find new ways to stay ahead of the competition and build a valuable business. If you are a non-profit organization, think about it as building value and maintaining a great organization that is worthy of future donations and contributions. No matter which industry you are in, you have to continually find new ways to build value and maintain a competitive edge in your field.

Too often, companies overlook their most valuable assets, their employees. Human resources is really an art of managing your employees, and it directly effects profits. From attracting and retaining the highest talent, to keeping the best employees within your business, these are challenges faced by every employer. Even when you have a qualified employee, how do you plan on retaining them as an asset to your organization? More importantly, how are you going to measure their productivity levels and how are you going to make sure they stay productive?  Productivity levels can drastically change your profits. Turnover can also be a major factor in your profits.  Both productivity and turnover levels should be analyzed and considered as a part of your companies strategic planning processes.

What can you do? Think about following some simple steps. First, hire the right people. Its not always easy knowing whether or not you have hired the “best” person for every job, but you need to do more then a simple interview. Conduct thorough background checks, get quality references and put your potential employees through some real hands on testing. If they show up to the interview looking drab, you may want to avoid any future discussions.

Secondly, productivity can be improved by doing things such as training. If your budget allows, make sure your employees have the opportunity to do some continued education. Send them through a leadership development course or time management seminar. You will be amazed at how much your profits can be affected in the long run by allowing your employees the opportunity to grow personally and professional under your watch.

There are hundreds of different ways to decrease your turnover and increase your productivity levels, so its important to look at your HR department. What kind of training to you offer your employees? How well do you recruit and retain your employees? Have you looked at your historical turnover ratio? Have you implemented any long term cost containment strategies? Do you have any asset protection against employee related law suits?

Being an employer is not easy, but it can be very rewarding. Treat your employees the same way you want to be treated, with respect and dignity. Don’t think of your employees as a “dime a dozen.” If your business is your most valuable asset, then your employees should be as well.

Continue to create HR value, and you will be surprised at the outcomes.

Jacob Hesse