How The Human Resources Function Impacts Business Growth
Instructions: Read the text and summarize individually with the main ideas of each
paragraph.
HR is a key driver of growth and
competitiveness. Here are three key
reasons why HR is essential to
organizational success and how leveraging
its full potential can impact your business
in a positive way.
1. Attracting And Retaining Top Talent
Attracting and retaining top talent is
essential for the growth and success of any
business. An older study found that
organizations with a strong talent
recruiting strategy saw 3.5 times the
revenue growth than those without.
Building a diverse and skilled workforce is
crucial for meeting the challenges of a
rapidly changing business environment. A
team of motivated and highly skilled
employees can lead to increased
productivity, improved customer
satisfaction, and a competitive edge in the
marketplace.
Reducing turnover is another key benefit of
effective recruitment and retention
strategies. The cost of replacing an
employee "can range from one-half to two
times the employee's annual salary,"
according to Gallup. Investing in effective
recruitment and retention strategies can
help businesses attract and retain the best
talent, which is essential for long-term
success. The HR function plays a vital role
in this process, by finding not only
candidates with the right skills and
experience but also those who align with
the company's culture and values.
2. Building A Positive Workplace Culture
This aspect of growing your organization is
truly the sweet spot of effective HR. No
one is thinking about the entire
organization except the HR function.
According to a study by Gallup,
Source: Joey Price, Forbes Councils Member - Forbes Human Resources Council
BUSINESS
organizations with high employee
engagement have 23% higher profitability.
A positive culture not only improves
employee morale, but it also has been
shown to increase productivity, reduce
absenteeism and turnover, and improve
customer satisfaction. By fostering a
culture of trust, respect and inclusivity,
businesses can create an environment
where employees feel valued, respected
and motivated to contribute their best
efforts. This not only benefits the
employees but also makes the company an
attractive destination for top talent, which
is essential for long-term success.
3. Improving Organizational Performance
Improving organizational performance is
not only essential for achieving goals and
increasing efficiency, but it also has a direct
impact on the bottom line. According to
The People IQ study, 13% of managers and
workers expressed the belief that their
organization's PM system is useful. The HR
function plays a critical role in driving this
performance by managing and motivating
employees, creating systems and processes
to measure and improve performance and
providing development opportunities.
By implementing effective performance
management systems and providing
development opportunities, organizations
can improve the performance of individual
employees, teams and the organization as
a whole. This can ultimately lead to
improved productivity, increased revenue
and greater success in achieving
organizational goals. Additionally, effective
performance management can also help
organizations identify areas for
improvement and make necessary
changes, allowing them to stay competitive
in the long term.