Why HR is Intrinsic to Company Growth

Image of the city of london company growth

Author: Dean Hunter

Published: 17th August 2017

There are a number of elements which work together to achieve business growth, and many people don’t realise HR is one of them. The HR department can be a big name corporate player in business strategy, helping employees to relate to business aims and objectives. Effective HR procedures are inherent for business growth, because the main areas HR focuses on – recruitment, talent management, engagement – can all drive profitability.

Many business managers are unaware of how HR can identify cost savings and help get the best out of employees. For example, are you mindful of the cost of disengagement? Do you realise there’s an extra £26bn available for UK businesses to tap into, if they could successfully engage their workforces?

Organisations thrive on their talent, and nurturing it is as important for the bottom line as securing big clients. Here’s how a great HR team can drive profit and push company growth.

Introduce simple cost saving processes

You might not think much of the suggestions from HR – but look again and you’ll see they actually make financial sense. Reducing staff turnover, asking employees to suggest new recruits and building a strong company culture are simple policies to introduce that could make a big difference. Cutting costs where you can opens up a wealth of financial opportunities, allowing companies to hold onto more profits. Get the right building blocks in place and you’ll soon notice the difference.

Invest in leadership

Having the right leadership team in place is absolutely crucial, which is why HR can assist in identifying the employees with the most potential. Invest in management training to create inspirational leaders which will motivate and inspire their departments.

Boost engagement

HR practices can be used to directly boost profits, and none are more effective than turbocharging engagement. When you create a happy and engaged workforce, staff are more motivated and productive, which has a direct impact on profitability. There are various ways to tackle engagement, but the majority of practices don’t take a lot of investment. That means an ongoing focus on engagement can rack up a very impressive ROI – there’s a reason we talk about engagement a lot!

Tackling disengagement or introducing plans to boost engagement is a simple way of increasing turnover and can be an effective part of a long term HR strategy for growth.

Are you ready to embrace HR as a successful tool for growth? Speak to our HR experts to see how we can implement the fundamental building blocks for business growth. Email [email protected]