Page 18 - Network Magazine Fall 2018
P. 18

           THE ROI OF HR: HR Has Shifted from Overhead to Investment
TINA HAMILTON MY HR PARTNER
Over the past ten years, there has been a monumental shift in workforce management away from the traditional idea of staffing a “personnel department” to push papers in tucked-away cubicles, far removed from the hub of the workplace. Today’s modern human resources operations play a big role in optimizing the workforce, and they must have a legitimate voice in the executive suite and board- room.
Increasingly, HR is rightly viewed as an investment, not an expense or overhead. Modern employers realize that cul- tivating their people is as important as maintaining their technology, brand, quality systems, and other business functions. Without a strong, productive workforce, there is no guarantee anywhere in the company.
Organizations of all sizes have been enhancing their HR programs and processes for good reasons. If you listen to politicians, it would seem that the movement centers on the need to meet ever-changing (and sometimes onerous) regulations and rules. This is a valid concern for any work- place. However, while avoiding the pain and expense of non-compliance is important, it is not the most compelling reason for improving HR operations. The biggest reason most organizations have been modernizing and expand- ing their HR services is really quite simple: It improves their bottom line.
Four vital ways HR improves your workforce ROI
There are several major ways in which HR operations can contribute significantly to increasing the value of your workforce investments.
are a must, and they must be executed without sacri- ficing the quality of candidates. Even one bad hire can take a tremendous toll on your workplace climate and overall employee satisfaction.
2. HR helps enhance workforce productivity. Good HR practices can find inefficiencies within a work- force and remedy them in a way that both employers and employees can appreciate and value. HR can also teach, encourage and reward productive behaviors.
3. HR helps reduce turnover. When employees feel that their company nurtures them, supports them and respects them, they are far more likely to stay. What’s more, they are going to work harder, be more loyal and be more likely to tell others about how much they enjoy where they work. This all helps to boost an organization's employer brand authentically.
4. HR helps you keep up with the competition.
Whether you realize it or not, you compete every day to attract and retain talent. If great people don’t enjoy working for you, they’ll find a paycheck elsewhere. What’s more, if you aren’t employing the top talent in your field, you will also find it harder to compete for clients, because they will gravitate towards other organizations that have a more robust workforce. Clients today demand a high-quality customer ex- perience that comes naturally from businesses that employ great people and retain them long-term. This is thanks in no small part to quality HR practices and support.
Tracking ROI of HR programs
It can be difficult for organizations to measure how some of their HR functions contribute to revenue or decrease expenses in hard numbers. This may help to explain why
1.
HR helps limit the amount of time, energy and money invested in recruiting. Organizations cannot afford to waste resources on poor hiring and applicant attraction practices. Focused and faster processes
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