The most valuable asset of any company is the people who work there. The employees that do the work are the cogs in the machine that keep your company running on a day to day basis. Keep these employees happy and your company can go far. Let these employees get bored and quit and you’ll be heading for a financial nightmare.
Academic research and real world show how HR Practices affect the bottom line.It is not about obsessive cost cutting but effective investment in human capital
The best business leaders know that their people are the driving force behind their business. Now, there is a growing appreciation of how human resource practices are directly linked to revenue and profit they may be composed of outlay and opportunity costs; and they may have both direct and indirect cost elements.HR needs to concentrate on employees cost reductions.
Use technology. Technology, when used efficiently, can help you cut labour costs to a certain extent. Computers can automate several tasks and greatly reduce production time and costs. Even simple computer software has the ability to enhance and improve project management so that more gets done with less labour.
Cost cutting strategy refers to initiatives implemented by a company to reduce its expenses and improve profitability. They can also be enacted if a company's management expects profitability issues in the future, where cost cutting can then become part of the business strategy.
HR strategies that can increase profitability for the company: Review frequently the compensation Packages. Money, perks, and benefits are important to every employee. Offer competitive wages that allows them to live the life they want to live.
Skill enhancement to be encouraged through Training & Development. Employees want to improve their skill sets over time. Offer them the opportunities to become better at their jobs.This brings in confidence in the employees and motivates them to perform better.
Stringent rules leads to failure. Telecommuting, flexible schedules, and work life balance are important to workers. Be flexible and your employees will ultimately work harder for freedom to work and at the same time fulfilling the targets are well taken care by the people.
Guidence properly administered and executed leads to showing clear path and vision of the organisation. Develope mentorship program where new employees can embrace the culture and the knowledge of your veteran employees and vice versa.
Good job done should always be appreciated and rewarded suitability. Execute Rewards and recognition Programs – Give employees an incentive to do a better job. Reward them for their hard work. Recognize their accomplishments. Let them know they are valuable to the Organisation.There are many more initiatives to increase profit for the company.
Even though HR may not make money directly for the company, they are most certainly directly responsible for increasing your company’s bottom line. Invest in your people and the money will follow.
