Can HR Really Save A Business Money? | Human resource services

With many businesses under pressure from the financial downturn, financial analysts and business experts are recommending HR ? also known as human resources ? in their droves. But what can HR do for your business and can it really save you money?

The first step in understanding whether HR could benefit your business is working out what Human Resources actually means. Many consultancies and advocates will have different interpretations, often based on their own experiences or the expertise that they offer. In a nutshell however, HR encapsulates getting the most from your work force as well as ensuring that employment law is met at all times and staff feel comfortable, happy and rewarded when working for your business.

Indicators certainly show that, if conducted correctly, HR can save businesses money as well as improving staff retention and productivity. Absenteeism in particular is one area of HR that can help businesses save. Absenteeism is costly, with businesses forced to fork out for temporary staff as well take the hit when employees who do turn up for work find that they can?t complete tasks fully or as quickly without the help of absent colleagues. A solid HR strategy allows businesses to fairly dismiss regularly absent staff within the regulations of employment law as well as preventing many of the known reasons for absenteeism before they begin.

So how else can HR save businesses money? Well there?s also the tricky topic of employee retention. While factoring in rewards, commission and other financial incentives into the monthly budget can seem like another overhead rather than a saving, employee reward and retention methods are actually more of a money saving exercise than they might initially seem. For example, if staff feel rewarded and acknowledged they are more likely to perform to the best of their abilities. Furthermore, if business owners are able to offer talented or highly skilled workers incentives on top of their monthly wage, this is a measure that could prevent them from leaving or being head hunted by a competitor company. The recruitment process is, of course, another costly measure which is best avoided by the help of an HR strategy that features a staff retention plan.

Finally, as well as rewarding your staff, you also want to ensure they are constantly improving. Staff training and development are another big draw for employees who want to ensure they are still able to develop and retain key skills whilst working for your business. What?s more, by using HR to identify areas where your business and team could benefit from training, you are proactively improving your business, productivity and brand.

While HR may not be applicable to every business, it is certainly a positive means to improve and enhance your business which could also save you money.

About the Author

Mary McGee is an expert in HR.

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