Understanding the Value of HR Beyond Costs: A Radical Repositioning

Irrespective of the type of business and the market you operate, the number of the workforce and its efficiency are always supreme. Today, people see human capital as the profitable force of a business. A business cannot reach or achieve its desired results without its passionate and skilled employees. Earlier, the field of HR failed to receive much prominence and remained all about selecting and recruiting people on defined criteria.

However, the scenario has changed today, and organizations consider HR as a necessary expense that keeps the organization running through its processes, services and efficiencies. It indicates that human resources fails to receive the attention, budget and resources it deserves, which is a costly mistake. By repositioning HR as their profit center, organizations become future-ready by avoiding costly mistakes.

How An HR Influence Your Organization?

Start-up businesses begin as sole proprietorships or partnerships where owners are company workers. In contrast, successful companies hire employees to complete their basic tasks and management responsibilities. As the company grows, it creates a human resource department responsible for managing employees and their well-being. Enlisted are some ways in which an HR department influences an organization.


One of the ways that an HR department influences an organization is by managing recruiting. The recruitment process involves specific tasks, such as screening resumes, attending job fairs and conducting interviews. The recruiting team ensures that the organization hires workers with the skills and knowledge required to succeed.


Today, the organizations are operating in the era of technological advancements. If the HR departments are not leveraging technology, the organization will fall behind the competition. For instance, the department of an organization has to choose between hiring new paperwork and onboarding software. The difference can mean the department’s ability to respond to amazing candidates before the competition. Instead, the department must carve out time to do things differently and understand that risk is a part of the journey.

Training the Employees

In today’s modern economy, businesses must exploit new opportunities and technologies. A part of this involves ensuring that the workers possess knowledge and skills in their field of expertise. Besides, the department must encourage the employees to undergo training and education to become successful.

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Strategies to Transform Your HR as A Profit Center

Here are five ways Human Resources can adopt the strategies to find the best place at the C-suite table and drive profitability.

Look at the bigger picture.

Most Human Resource managers love running their cozy empire without understanding an organization’s condition and priorities. They are not interested in sales numbers, market dynamics and other essential business information. Besides, they aren’t aware of the new trends emerging in HR leadership. The modern day managers hire business managers that drive HR. Besides understanding business, they link the HR deliverables against the cash flows and predictive analytics, thereby saving the organization from over-hiring and future turnover.

Professionals interested in enhancing their decision-making skills must see the bigger picture. When professionals learn to see the bigger picture, they help set better goals, improve leadership skills and prioritize tasks. By developing a complete perspective of an organization’s situation, the professionals can make decisions driving long-term results, helping understand the employees’ roles in advance.

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Opt for digital means.

Nowadays, HR digital transformation is a hot topic for most HR professionals. It is for a good reason, as digital technology has the potential and ability to transform HR processes. However, talking and adopting the transformation is a different thing. The professionals must dig deeper into the phenomenon of HR digital transformation and determine its necessity and the strategies to adopt it.

One can start prioritizing digital transformation through internal communication. It includes the number of channels, cadence, centralization and connection of various applications through APIs. The remote working system accelerated the process for several industries, keeping HR at the forefront of implementation and communication. It resulted in faster, more efficient business processes, productive and engaged employees and a boost in revenue.

Engage with other units.

Transparency as a movement is more significant and comes with various responsibilities and opportunities. Sharing has become the new normal, whether it’s about exchanging information about a hotel for a few days’ stay or visiting a restaurant. It influenced everything, including major e-commerce sites, automobile purchases, travel decisions and beyond.

CHROs play a vital role in ensuring the organization lives its purpose and values. It happens when HR remains transparent with its stakeholders across the organization. Managers and leaders can reach out to the key business unit heads and engage them in HR’s key projects assigned by the top management. What’s the outcome? It strengthens the leadership bond and the capacity for change, helping HR to have its advocates around the organization.

Opt for Internal Mobility Programs

Attracting talent is challenging, and once a manager hires an ideal candidate, the last thing an organization wants is they must leave. An organization’s existing workforce is its lifeblood and one of the best sources of talent to tap when it has new openings. With masses of baby boomers beginning to retire, driving large gaps in leadership, retaining and growing the organization’s talent is crucial.

The best organizations worldwide believe their employees play a significant role in their growth and success. An excellent HR leader arranges rotational programs and cross-functional roles that straddle departments. These programs offer an agile exchange of ideas, better talent alignment with projects, higher engagement and longer average tenure.

Understand that it’s all about people.

An organization requires people, irrespective of the business. Human capital stands as the driving profitability force behind any business. Without passionate employees recruited to their respective positions, an organization never exists. HR plays an important role in encouraging and engaging employees.

Certain practices, including helping new employees adapt to the new environment and culture, celebrating higher achievers, and training low performers, help HR professionals improve the organization’s effectiveness. Through these practices, HR creates an opportunity for the firm to seek new business opportunities and boost its revenue.

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HR departments of organizations are changing rapidly. With more talents joining HR from other disciplines, the department across industries experiences analytical decision-making, human-centered design thinking and best practices from different functions and departments. Turning an organization’s HR into a profit center is difficult. Despite a disruptive HR strategy, the company enjoys excellent returns. It boosts an organization’s HR function, internal standing and reputation.

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