HR has come a long way. From its roots as personnel administration in the early 1900s to protect workers and to perform administrative duties, HR has evolved along the way. In this century-long transition, HR professionals have become savvier and are playing a much more crucial role.
Today, HR professionals have become a vital strategic partner in almost every organisation.
Companies have started to realise that to stay ahead of the competition; they need a strong HR strategy. Sure, there have been diverse HR challenges along the way like attracting and retaining employees, finding people who can fit in culturally, helping employees cope with change, etc. However, HR professionals have always managed to endure.
HR and the Bottom Line
Human resource functions are rarely perceived as having a major impact on the bottom line of an organisation. Importance has always been given to marketing, sales, and finance. However, what organisations don’t realise is that “people” run the marketing, sakes, and finance department and those people are in line because of the HR department. The HR team is the reason behind attracting, retaining and ensuring peak performance.
So yes, a company’s HR team has more power to drive success and growth than any other department.
Here’s how the HR department can have a positive impact on an organisation’s bottom line:-
1. Know the Business
They know the business, they know who’s role is more critical and who is underperforming. They know how the company truly operates and how to hire the best candidates who fit the profile. HR professionals are ones who know an organisation in and out – who is getting paid what, who is doing their job well and who isn’t, who is responsible for what, and most importantly, who is not fitting in the work culture.
2. Hire and Engage the Right Talent
HR professionals are the key to maintaining the quality workforce in an organisation. They are responsible for hiring the right talent, ensuring they fit into the company’s work culture and keeping them engaged.
If you aspire to build a thriving career in this domain, consider enrolling for credible online courses in HRM. These courses boast of an extensive curriculum and well-rounded knowledge, which can help you gain exposure to every single facet of HR. One such online course that is gaining immense popularity among aspiring HR professionals is the HRM course from XLRI. Offered on the Talentedge platform, the HRM course from XLRI provides in-depth theoretical knowledge and practical application of HR tools.
3. Good HR Leaders and Profitability Go Hand-in-hand
By providing a clear vision and following a result-focused strategy, HR professionals help employees stay focused on achieving organisational goals. Not just that, but the HR team is also responsible for inspiring high performance, communicating effectively, build employee-employer relationships, and help workers develop strong professional expertise.
Some may even confuse the role of HR with that of a general manager considering the similarities in the responsibilities like managing and overseeing employees performance and helping them cope with change. However, there is a significant difference between HR and general management. So before you sign up for credible courses in HRM, you need to understand the difference between these two domains.
We live in a technology-powered world, and if the HR professionals don’t leverage the technology and use it in innovative ways, the organisation will fall behind the competition. For instance, while poaching a potential hire, do you refer to paperwork or do you seek assistance from a recruitment software? The difference can impact your ability to respond to candidates before the competition does. By leveraging innovative technologies and tools at the disposal, HR professionals help organisations stay ahead of the competition and attract the best talent.
5. Construct a Positive Experience
Another way HR impacts the organisation’s bottom line is by providing a positive experience to the employees. And this positive experience motivates the employees to perform to the best of their potential, ultimately yielding higher profitability. And isn’t that directly affecting the bottom line of the company?
Online courses like the HRM course from XLRI emphasise the importance of HR and how HR professionals can impact their overall growth. As an HR professional, to learn in-depth how you can construct a positive experience, sign up for the HRM course from XLRI offered on the Talentedge platform.
5. Align HR strategy with Overall Business Strategy
HR professionals are constantly required to keep an eye out for the achievement of organisational goals. They need to keep a check on how departmental goals align with those of the organisation. For instance, if supporting compliance initiatives are the priority for the year, HR professionals need to figure out ways to support compliance all throughout the organisation.
6. Developing Strong Leaders
Lastly, the HR professionals are required to create a talent pipeline, wherein they include replacements of senior management level positions. So, if someday, say a vice president position is left empty, someone is there to take over. And not just that, but the HR is also responsible for training and developing aspiring leaders to prepare for such roles.
HR and Business Strategy Alignment
There is no “one-size-fits-all” solution; this means there is no specific HR activity that can improve the company’s bottom line. Rather, the success of any HR strategy is based on the understanding of the business strategy. This is why HR professionals are provided special training to get a clear picture of aligning their HR strategy with the business’s long term goals.
Train to Become a Thriving HR Professional
Online courses in HRM can provide the pathway to building a great organisational culture. One such online course you can rely on is the HRM course from XLRI. Offered in collaboration with Talentedge, the HRM course from XLRI helps you build your people management skills and provides an understanding of the behavioural aspects of individuals at an organisational level. This can help you get a sense of the strategic role of the HR and global standards.