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Is the Human Resources function really just a necessary evil?

Guest post by: G.J. Miller

Article Overview: What is the single largest expense in most businesses? People; payroll costs represent anywhere between 60 to 85% of controllable expenses.

Is the Human Resources function really just a necessary evil?

Why do many businesses leave people things to evolve as opposed to strategically managing them? Time; those at the helm are focused on sales revenue and product development or they hire managers to take care of some of this “soft stuff” so they can remain the entrepreneur or work on strategic customer relationships. The reality is that managers are sometimes ill prepared to deal with the day to day issues let alone taking the time to focus on being great leaders and it’s great leadership that will set your organization apart from all others.

If you could increase your profit margins would you do it? If you could increase your customer satisfaction, productivity, efficiency and revenue – would you do it? Of course you would – and you would likely be willing to spend some time or money doing it. What if I told you that the right Human Resources Professional could actually help you move all of these things in a positive direction? Well they can.

By understanding the business direction and its long term goals, HR can develop plans and programs that will help you and your leadership team deliver. Programs such as strategic recruiting and workforce planning or leadership development and succession planning, when aligned with the business strategy, prepare the organization for the future. Studies have shown that organizations committed to strategic HR programs become high performing organizations over time with returns that positively impact the bottom line.

Yet, some businesses owners still view HR as a necessary evil – a function they have to have, to keep the regulators from the door. Of course, there are regulatory requirements that must be met and this is still part of the function. However, HR can be a proactive function rather than a policing function. Other business owners see HR program costs as pure expense. Sadly, if programs are not part of the business human resources strategy – this could be true.

Until HR is viewed as an integral part of the strategic and annual business planning cycle and businesses expect HR Professionals to be visionary and proactive these views and practices will continue. Even the most positive proactive HR Professional will give up in an environment that does not understand or value how the function can contribute to the bottom line. They either leave or ‘quit and stay’.

Simply put, if you want to save time and make money take another look at the Human Resources function and learn how you can make it one of your competitive advantages!

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Article Tags: busin, business direction, businesses owners, customer relationships, customer satisfaction, future studies, great leaders, hr program, hr programs, human resources strategy, leadership development, leadership team, necessary evil, policing function, positive direction, productivity efficiency, profit margins, strategic recruiting, succession planning, workforce planning



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