Human Resource departments are critical to the growth and profitability of every business. This is in stark contrast to the reality that many see HR as a cost-center, rather than a profit-center. Let's explore what we mean by breaking down 5 aspects of HR departments within growing organizations and startup companies.
HR as a Business Partner The Strategic Role of HR
A company’s most important asset is its people. Human Resources plays a strategic role in attracting, developing, and retaining talent. The goal of HR is to create a competitive advantage for the company by attracting, developing, and retaining the best employees.
The role of HR has evolved from being a transactional function to a strategic partner in the business. HR is no longer just responsible for hiring and firing, but also for developing and retaining talent. HR must align its strategies with the business goals of the company in order to be effective. One of the most important roles of HR is to attract top talent, and a company must have a strong employer brand that is attractive to top talent.
HR as an Employee Advocate The Operational Role of HR
The operational role of HR considers how departments can supports businesses in achieving their goals. HR provides the operational framework for businesses to hiring, managing and developing employee talent. This operational role ensures that employees have the critical tools they need to support and sustain business growth. When businesses are seeking to grow, they must have the support of an operational HR function. Without the operational framework provided, businesses would be at a disadvantage in achieving their goals.
HR as a Business Enabler The Tactical Role of HR
HR play a vital role in business growth. They are the ones who identify, attract, and retain top talent. Not only that, but they also help businesses navigate through complex challenges and ensure compliance with regulations. In other words, HR is critical to business growth. There are a few key ways that HR contributes to business growth:
- Attracting and retaining top talent
- Helping employees navigate through complex challenges (e.g., via Employee Resource Groups)
- Ensuring compliance with regulations
- Providing data and insights to help businesses make strategic decisions
- Developing and implementing programs and policies that support employee well-being and growth
- Managing organizational change and DE&I initiatives
- Promoting a positive, thriving workplace
HR as a cost center: how to cut costs in your department
If your human resources (HR) department is costing your company too much money, there are ways to cut costs without compromising the quality of your HR services. Here are some tips:
- Outsource HR functions that are not core to your business. There are many HR functions that can be outsourced, such as benefits administration, payroll, and recruitment. This can save your company money on salary and benefits costs, as well as free up your HR staff to focus on more important tasks. One such example is working with an employee leasing or Professional Employer Organizations (PEO), which can have an ROI of about 27.2%.
- Use technology to automate HR tasks. There are many software programs available that can automate HR tasks, such as performance reviews, time off requests, and employee onboarding. This can save your HR staff time and money. One such tool is the CO.CAREERS Job Board and Applicant Tracking System. Another is a people analytics software solution that is the key infrastructure of your employee experience.
HR as a profit center: how to make your department more profitable
If you want your business to grow, then you need to make sure that your HR department is as profitable as possible. Here are a few tips on how to do just that:
- Make sure that your HR department is well organized, competent, and efficient. This will help to save time and money, and is easier said than done. You can do this by getting and refreshing your HR certifications, for example.
- Use the latest human-centered technology that works for you and your employees. This will help to improve efficiency and productivity, improve internal communications, and more.
- Make sure that your HR department is focused on the future. This means investing in training and development programs that will help your employees to be more successful in the future. Consider a mentorship program, for instance, and utilizing a membership software like Lattitude, and be sure to set OKRs, highlight important HR metrics, and regularly review your people analytics for insights.
- Make sure that your HR department is committed to recruiting the best talent. This means prioritizing DE&I, investing in creative sourcing strategies, and investing in a strong talent acquisition strategy.