Is HR a Moneymaker?

WRITTEN August 24, 2017 Author: Rich Atkins

Some people make the mistake of undervaluing the Human Resources Department. It’s an easy error to make. For those that think that the HR function is NOT a money-maker for the organization–they’re partially right! Read on, and you’ll find that Human Resources, while not a profit center, actually protects businesses from significant financial loss.

But the question is still out there – is your HR a Moneymaker?

Human Resources, in any organization, is a vital function that, when engaged strategically, can save companies from losing millions of dollars. If you’re not sure, take a look at some of HR’s growing responsibilities in business:

  • Strategic planning, recruiting, staffing, andretention involving human capital
  • Assessing the internal environment
  • Measuring outcomes of initiatives
  • Upholding the organization’s ethics
  • Ensuring compliance with legislative and regulatory practices
  • Employee relations and engagement
  • Talent and performance management
  • Protecting employer and employee rights
  • Preventing discrimination and harassment
  • Employee discipline and complaints
  • Terminating employees and keeping proper records
  • Training and organizational development
  • Compensation and benefits
  • Preventing unfair labor practices
  • Working with unions
  • Risk management, such as safety, health, and security.

WOW! HR does a lot! And that is NOT a complete list.

Each of those points in the list above has untold dollars attached
. When there’s a fault in one of these aspects of the HR function, the organization is in danger of losing lots and lots of money.

So the Human Resources function, when strategically engaged, is not focused on “how good everyone feels.”HR’s true primary concern is how to best position the organization into the most lean and profitable entity possible, all the time ensuring that laws and proper procedures are followed to prevent lawsuits and other sanctions.

HR upholds laws and policies in your organization that, in most cases, they didn’t “invent.” Outside governing bodies created and imposed them. Having Human Resources know them and make sure they’re followed protects the company from all sorts of financial problems.

Have you thanked your HR person today?

 


This information is from our Human Resources curriculum. If you’re looking for ways to improve your communication skills, register for one of our public classes.

 

Photo courtesy of Tax Credits

 


 

Other Resources:

 

5 Ways Chief HR Officers Can Impact the Bottom Line

Human Resources and the Impact on your Bottom Line

How HR Drives Profits

HR and the Bottom Line — Where Does the Value Lie?

8 Ways HR Can Impact the Bottom Line

 

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