HR covers a lot of territory—much of it cluttered with paperwork—but it really does have a precise business purpose. The point of HR is to make employment more profitable. HR does this in three fundamental ways:
- HR protects the organization against employment-related lawsuits and fines;
- HR reduces the costs of employment; and
- HR maximizes employee productivity.
In short, HR helps the employer save money and make money in all things related to employment.
Protection from Lawsuits and Fines
Good HR practices can substantially reduce the risk of lawsuits and other costly consequences of non-compliance by ensuring that the organization follows federal, state, and municipal legal requirements.
The government has multiple agencies tasked with investigating violations and administering fines. The Equal Employment Opportunity Commission investigates discrimination claims. The Occupational Safety and Health Administration looks into workplace hazards and safety violations. The IRS and Department of Labor may ask to see your books, and the U.S. Citizenship and Immigration Services might audit your I-9s.
The penalties for violations can range from amounts that are mildly inconvenient to those that are financially devastating, so you do not want to leave these areas to chance. Employing people comes with risk, and it is an HR job to manage and reduce that risk.
Reduction of Employment Costs
Competitive wages and benefits, office perks, and first-rate technology can help you find and keep great workers, and they can help you improve your products, boost your sales, and grow the business. There are also employment costs HR can help cut. Hiring and recruitment processes can be streamlined and assessed for inefficiencies. Turnover costs can be reduced by improving your onboarding process, communications and engagement efforts. Inefficiencies can be resolved through performance management and discipline. In addition, offering some form of paid time off can enable sick employees to stay home so they do not come to work, spread germs and reduce the productivity of the office even more than if they had stayed home.
Increased Employee ProductivityÂ
In addition to preventing and reducing costs related to employment, HR can also help the organization increase productivity by encouraging and helping employees to be more collaborative, innovative, creative, knowledgeable, skilled and better at their jobs. Coaching, training, skill development, career advancement, outside education, and culture advancements are tried-and-true productivity-building methods. They also have the added perk of directly benefiting your employees.
When HR works on maximizing productivity, it is able to serve the interests of both the employer and employees in ways that are visible and appreciated by all parties. Employers bring in more revenue, employees develop professionally, and customers get better service. Everybody is happy.
Good for Business
Ignoring HR or neglecting its responsibilities puts the organization at greater risk, wastes money on subpar and inefficient operations, and hinders employers and employees from reaching their full potential. Investing in HR reduces risk, eliminates inefficiencies, and improves productivity. Whether you are a business owner, office manager, HR department of one, or on a team of HR practitioners, spending time on HR bolsters everyone’s success.
This post is provided by the HR Pros at the HR Support Center. When you need essential information on human resources issues, from benefits, hiring, and management, to culture, technology and regulations, HR Support Center is a resource on which you can rely. To learn more, visit www.corpay.com/hrsupport or contact us at 770-446-7289 x2102.
