Human Resources as a Strategic Growth Engine? Absolutely!

By Julie Kniseley, SHRM-SCP | James Moore & Co. HR Solutions

Most business owners see human resources as essential but costly, often questioning the return on investment.

Executives have been accustomed to viewing HR as a pure cost center. These departments are responsible for managing salary structures, benefits, comp plans and other important operations—which owners tend to see only as expenditures. Necessary, of course, but expenses, nonetheless.

And since HR teams are responsible for recruitment campaigns, their successes translate into additional costs in terms of payroll and benefit increases. Business owners recognize HR plays a vital role. However, they have been conditioned to view human resources activities strictly through a financial lens, seeing them only as a cost center.

The Most Important Business Asset

But is this assessment accurate—or even fair? In essence, no. HR departments are responsible for negotiating and managing personnel-related expenses like salaries and benefits packages. Yet it’s far more holistic to recognize HR for what it really is: a vital component for strategic growth and long-term profitability.

Human resources is where a company’s most important asset—its talent—is recruited, nurtured, compensated and appreciated. It’s a strategic asset for any company, and to dismiss its impact on overall growth and profitability can be detrimental to the organization’s overall health.

Companies that fail to leverage a positive company culture and supportive environment risk falling behind. Without these advantages, they struggle to attract top talent needed to drive success.

Even businesses that build complex technologies still rely on skilled, knowledgeable people. Automation may replace some tasks, but human expertise remains essential to creating, selling and supporting products and services.

And even in this highly technical world, smart businesses recognize that the quality and talent of their employees are really what set them apart?and have a direct correlation to topline revenue and profitability.

Creative and seasoned HR professionals intuitively understand the relationship between talent and business outcomes. It’s what they plan for every day by building talent pipelines, recruiting the best available team members, and instilling and managing a positive, inclusionary culture that is attractive to new recruits, and retains good employees.

Building Tomorrow’s Workforce

These dynamics are critical in today’s economy. As a significant number of workers begin to age out and enter retirement, businesses find themselves struggling to identify the next generation of workers that will not only solve today’s problems but will also provide the foundation for growth. It’s not easy.

Acquiring the right talent is highly competitive, and the next generation of employees is often seeking qualities that extend past monetary compensation and benefits.

Concepts like work-life balance and altruism are not simply buzzwords for the modern workforce. Younger candidates are more interested in preserving their personal time compared to their parents. And they can be as attracted to the sense of purpose as much as money. They want to know their efforts will achieve a greater good—for customers and even for society.

They also want to know that their employers are committed to the greater good. If employers are not cognizant of these dynamics, it will be increasingly difficult to successfully recruit qualified employees who will invest their futures in the company—and ultimately bring strategic growth and profitability to that organization.

A Foundation for Strategic Growth

A knowledgeable and empowered HR team drives this strategy. These professionals are the bridge between stagnancy and growth. By attracting the right people, and providing attractive packages, they create an environment that keeps good employees motivated and fulfilled. And even in this age of emerging AI, companies without fulfilled, productive, committed people at the helm are at great risk of failure.

A sound HR approach is not about managing expenses and squeezing pennies. A strong HR strategy strengthens competitiveness, drives growth, and boosts profitability. Ready to transform HR into a strategic asset? Contact us today to develop an HR strategy that fuels growth, attracts top talent and strengthens your bottom line.

All content provided in this article is for informational purposes only. Matters discussed in this article are subject to change. For up-to-date information on this subject please?contact a James Moore professional.?James Moore?will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.

Originally published: https://www.jmco.com/articles/human-resources/human-resources-strategic-growth-engine/