8 min read

How HR does save your money.

HR — your ally in profit growth.

How will HR increase your income?

If anyone tells you, that HR doesn’t help you to save your money, do not believe him. Probably, this person is not a friend of yours. HR not only saves but increases your revenue, on one condition: you will treat it progressively.

This blogpost will be useful for HR, CEO, company owners, directors of people, for those who want to be them, and for everyone who wants to be good at handling money. HRForecast answers two vital questions:

/1 How to make HR a major ally in increasing a company influence and revenue?

/2 How can HR directly affect profit growth and resource saving?

HR doesn’t help you to save. On the contrary, it makes you invest money in order to reap the benefits from the upgrading, improvement, and enhancement of both things — human and material resources.

In fact, the initial aim of HR is to form the employer’s brand. You will never build an attractive employer brand without forming the right culture. These are the employees who should become the brand’s advocates. The ultimate goal of HR Tech* is to increase the profitability and value of the company. Meanwhile, HR should understand how and what to spend money on.

The fulfilling of the main HR functions requires, consequently, the most money.

Here are 5 TOP functions of HR which aim to move the organization forward.

/1 Human resource planning

What kind of people does the organization need, and how many?

Your employees are an asset that affects every decision — recruitment, selection, performance management, learning, and development, etc. It is all about knowing and predicting the answers: where the organization is today and what it needs to be successful in the future.

/2 Hire and maintain the TOP employees

20% of the most efficient employees provide about 50% of the total result

We all want to hire only those top 20%. But HR Tech today can not only select the best candidates easily and quickly; it keeps your employees motivated, incorporated, and upskilled (Fusion skills of the future), so it can turn much more of the employees into TOP 20%.

$300.000.000 costs the lack of motivation and involvement for business per one year

Once candidates apply, the selection is an HR instrument to pick the best qualified and highest-potential candidates. Technological developments in recruitment supply different types of recruitment tools for each part of your recruitment funnel. Now you can even be shown which skills in what field you lack, or which concrete job posting out of their uncountable number is the right for you!

/3 Rewarding your enterprise’s “cornerstone”

Rewarding the employees for their work is impossible to miss. It carries the inherent relational and psychological outcomes. For example, fantastic colleagues and meaningful work are also a meaningful reward.

Rewards:

Base salary

Job security

Performance-based-pay

Bonuses

Status

Growth opportunities

Work approval

Autonomy

Alternating work

Social environment

/4 Developing the ecosystem within your company and beyond

Let HR analyze Big Data in order to align them with your company strategy! But beyond that, one should maintain good relations with the like-minded unions as well, that will keep you up-to-date and resolve the potential conflicts quickly. Be agile.

30% higher profitability is among workforce with high inclusion

/5 Carrying out the administrative responsibilities

The nature of the personnel procedures will change from costly and time-consuming one in favor of mobile and digital administration. HR #smartTools can minimize the expenditures on the relocations, discipline, performance improvement, illness, regulations, personnel production, distribution, replacement, evaluation, reserve, as well as personnel records management and accounting.

Here we are – we developed a direct actions strategy on how to make your HR profitable for your company.

Invest in HR asset first  –> reap the full benefits afterward

Manual processes in HR –> AI-based #smartTools

HRForecast can help you with the right strategies and competent interactions for the benefit of your team and business. It will be a pleasure for us to share our experiences with you.

*HR Tech – HR with a focus on digital interaction and collaboration, supported by technology-oriented IT. Other hallmarks of modern HR software are invisible separation across processes and tasks, single-point-of-entry for all available services, AI for facilitation, workflow automation.