How HR Strategy can Make Your Company More Efficient and Profitable

Image of people setting HR Strategy

Author: Dean Hunter

Published: 4th July 2017

When you think of the role and function of HR, you probably wouldn’t expect profitability to be the first word that comes to mind.

Real leaders understand the impact that sound values can have on the company, and can also correlate great cultures with increases to bottom line profitability.

Most of us will have had a bad HR experience – FACT. No doubt you have had a bad IT one too!

However, when done right, HR strategy drives profits – and the figures from Hunter Adams clients speak for themselves. It can be difficult for managers and business owners to understand just how the HR department relates to the company’s bottom line. After all, it’s not HR associates who are actively selling products or tapping into new markets. Essentially, a good HR team can make the entire company more efficient at what they do – which leads to profitability.

We claim that we are redefining HR by making your company more profitable, here’s the evidence.

Recruitment Spend

Our market mapping, social media presence building and direct sourcing have saved our clients hundreds of thousands of pounds. Traditionally all vacancies would be sent to third party agents and they would be filled as a placement fee or mark up cost. By having a search recruiter map your market sector and fill the roles directly, not only do you build up a pipeline of people who want to join your company but you massively reduce your external third party agency spend and increase the bottom line.

Draining Margin and Profits

We have demonstrated to PLC firms and SMEs that they are draining money every month due to poor productivity. As only 36% of staff are engaged in the UK workplace (CIPD 2017), the costs associated with disengagement can be as much as £650,000 per annum for a company with 100 employees. You won’t see much of this cost on the P&L. But increased sickness cost and the fact that disengaged employees make 100 more errors means your profits dwindle.

Client Relationships

Many managers often state emotionally that they are not too concerned with staff turnover. Some even claim that they don’t have enough turnover. Is that how your clients see it? There’s nothing worse than a buyer of a service losing your point of contact. Which is why many clients go with the employee and do not stay with the company. If you need help with HR consulting, get in touch today.