HR can be a broad topic, but it really does have a precise business purpose. The point of HR is to make employment more profitable. HR does this in three fundamental ways. First, HR protects the organization from employment-related lawsuits and fines. Second, it reduces the costs of employment. And third, it maximizes employee productivity.
In short, Human Resources helps employers save money and make money in all things related to employment. With that said, the next time you need to pitch a new HR purchase–whether it’s harassment prevention training, paperless onboarding, labor law posters, or even a company 401(k) plan!–to the head-honcho, take advantage of these compelling reasons your boss should give you the green light.
1. Protection from Lawsuits and Fines
Nothing can eliminate the risk of legal action altogether. However, a good HR department can substantially reduce your risk of lawsuits and other costly consequences of non-compliance.
The government has multiple agencies tasked with investigating violations and administering fines. For example, the Equal Employment Opportunity Commission (EEOC) investigates discrimination claims. Conversely, the Occupational Safety and Health Administration (OSHA) looks into workplace hazards and safety violations. Alternately, the IRS and Department of Labor (DOL) may ask to see your books. And the U.S. Citizenship and Immigration Services might audit your I-9s.
The penalties for violations can range from mildly inconvenient fines to sums that are financially devastating. With that said, you really don’t want to leave these areas to chance or a hope that you’ll stay “under the radar.” Employing people comes with risk, and it’s Human Resource’s job to manage and reduce that risk.
2. Reduction of Employment Costs
Competitive wages and benefits, office perks, and first-rate technology can help you find and keep great workers. Additionally, they can also help you improve your products, boost sales, and grow your business. But there are also employment costs Human Resources can help cut.
For example, hiring and recruitment processes can be streamlined and assessed for inefficiencies. HR can help reduce turnover costs by improving your company’s onboarding process, communications, and engagement efforts. Further, they can help identify and resolve inefficiencies through performance management and discipline.
3. Increased Employee Productivity
In addition to preventing and reducing costs related to employment, HR can also help increase revenue by encouraging and helping employees to be more collaborative, innovative, creative, and just plain better at their jobs. To illustrate, coaching, training, skill development, career advancement, outside education, and culture advancements are all tried-and-true productivity-building methods. Not only that, but they also have the added perk of directly benefiting your employees.
When HR works on maximizing productivity, it’s able to serve the interests of both the employer and employees in ways that are visible and appreciated by all parties. Employers bring in more revenue, employees develop professionally, and customers get better service. Everybody’s happy!
What do you think?
The business case is the case for HR. Ignoring Human Resources or neglecting its responsibilities puts an organization at greater risk, wastes money on subpar and inefficient operations, and hinders employers and employees from reaching their full potential. On the other hand, investing in HR reduces risk, eliminates inefficiencies, and improves productivity.
Whether you’re a business owner, office manager, Human Resources department of one, or on a team of HR practitioners, spending time on Human Resources bolsters everyone’s success. In light of this, it may be time to give your own HR department a facelift.
Ask about our suite of HR Solutions to learn how SDP can help your business with free online access to our HR Support Center, 24/7 live assistance to licensed HR pros, and even an on-site HR audit to ensure your business is on-track and compliant. And don’t forget to follow us on Facebook, Twitter, and LinkedIn for even more HR tips and tricks to make sure you never miss a beat!