Profits are what drives the company forward and in a simplified explanation, profits are derived when income is more than expenditures.
HR is usually not the first function that comes into mind when talking about company profits, but that would be greatly undermining the impact it has on a company’s performance because it is the people that creates top & bottom line therefore it is the management of these ‘human’ resources that will determined the top & bottom line.
For business owners or C level executives who are thinking about how to not only maintain the company’s performance, but also to grow during this period, please spend some attention on your HR practices & policies because these are the impact
Here are the top HR impacts on your profits
Making wise hiring decisions is an expected responsibility for HR or various departments’ hiring managers. However, choosing the right candidate doesn’t just mean selecting someone to fill an immediate vacancy — it means selecting candidates who demonstrate a propensity in being able to fit into the company’s culture, situation & available resources.
Hiring someone from a competitor’s company may seem like a good idea, but if the operating environment between you and your competitor are vastly different, even the best hire from there may not perform as well in your company.
Turnover is a costly affair, especially for SME businesses. If you take into consideration all the expenses associated with terminations, the amount of time needed to explain, handover for departing employees and retraining, rescoping for the next hire or personnel undertaking the role, all the silo insignificant costs starts to add up to become a significant wasted operating costs.
When HR reduces turnover, the savings help the bottom line enormously, which adds to the company’s revenue.
Having a culture of high employee engagement is like driving a car with well-functioning parts, as the reverse is true if you have a culture of low employee engagement.
According to a study from Aon, companies with high engagement rates have an increased revenue growth, increased shareholder value and outperform their counterparts by 6% in revenues, 4% in operating margin and 6% in shareholder return.
The decision to outsource HR functions can sometimes make sense to the bottom line, especially in countries where the authorities have grant support for local businesses to engage specialist on HR matters before eventually setting up their in-house department, outsourcing becomes an easy decision for business owners.
As a matter of fact, complete outsourcing of your HR saves money because the fees typically are lesser than the cost to employ a full-time HR person. What more if you find a provider whose services is supported by the authority & statutory boards.
Over the years of successful track record & portfolio, Enable Group was recognized as one of the HR services companies in Singapore whose service can be reimbursed for local SMEs.
Under the EDG & PSG pillars, Enable’s services are applicable for government grant reimbursement on matters such as;
- HR Policies
- Employee Handbook
- Compensation Management
- Performance Management
Click here to find out more.
ABOUT ENABLE CONSULTING
Established in 2013, enable Consulting is a specialised HR solutions provider for small and medium-sized enterprises.
We believe that having a strong and robust HR function is a key driver for continuous growth in any successful business. It is on this belief that we have built many successful partnerships with clients across different industries.
We are a people business and it is our talent pool that defines us. Each and every one of our consultants is highly professional with many years of experience in HR management and services.
Our Consultants are PMC certified to further be able to help local SMEs improve and optimise their HR operational efficiency through Singapore Grants. enable is about offering affordable, high value adding solutions to improve business performance; while at the same time nurturing and inspiring a fair and respectful working environment. But above all, enable is about enabling you.
Contact us for a non-obligatory Q&A consultation today
News Aggregation (18 Jan 2021)
- 2021 set to bring fresh set of challenges for HR
- How HR can make a successful shift into 2021
- Effective HR leadership may be key to promoting mental health in the workplace