We are slowly witnessing the resurgence of Human Resource Management, with companies actively investigating how HR teams can contribute to business growth. For years, HR teams have largely been delegated to admin tasks and rote hiring activities, but there are innumerable ways by which HR can contribute to business success. HR strategies for business growth focus on the hiring and retention of the right talent, but they can also involve active participation in key business decisions by bringing in a grounded angle to the discussion.
According to Indeed, the average HR staff-to-employee ratio is usually around 2.57 for companies with smaller organizations having a higher 3.40 ratio. The role of HR professionals extends to people management of various forms and these small teams are responsible for the well-being of such larger cohorts. Ensuring they have the resources to do their job well can ensure HR contributes to business growth in multiple, impactful ways.
Image credit – Freepik
How Can HR Contribute to Business Growth?
Prioritizing HR means an automatic prioritization of employees. According to Gartner, 47 percent of HR leaders prioritized employee experience as the top priority for 2023. HR teams that have room to experiment with and reorganize company priorities other than business success are better able to help the company grow. It is up to the HR professionals to understand the pulse of the organization and give workers what they want. FlexJobs’s Career Pulse Survey ascertained that 65 percent of respondents wanted to keep working remotely while 32 percent wanted a hybrid model. In addition, Remote.co reported that 63 percent of global workers would begin looking for a new job if they were not allowed to work remotely. If HR teams fail to understand and respond to such information, it compromises the potential growth of a business.
Employee Hiring and Retention
Undeniably, HR strategies for growing businesses begin with hiring and retention. Companies need employees to run their business and these individuals are hired by HR. Not only do companies need to put out job postings and hire correctly, but they also need to ensure that employee productivity is maintained and any roadblocks to their work are addressed immediately. HR professionals need to simplify onboarding processes and oversee the public image of a company to ensure it remains a place that job applicants aspire to work towards. There are many considerations here for how HR can contribute to business growth:
Analyze the labor market and understand what the competition is doing as well as relevant trends and policies Provide competitive benefits and opportunities for employees Select the right avenues for recruitment and carefully assess the quality of candidates from each platform Leverage social media—Source candidates and build a reputation Explore niche job boards and career fairs for talent recruitment Train the hiring team—address biases and outdated hiring practices Expand the hiring team and build a diverse interview panel Take feedback from new recruits on how to improve the hiring experience Use employee referral programs to bring in candidates of the same calibre as existing workers and reward employees for successful hires Optimize the recruitment process for mobile users to accommodate the increasing use of smartphones Embrace technology—Use HR management technology and services to streamline the hiring process Participate in diversity job fairs and collaborate with organizations that promote inclusivity Embrace agile recruitment methodologies to adapt quickly to changing business needsEmployee Engagement
Harvard Business Review states that 82 percent of employed Americans do not believe their supervisors acknowledge their contributions, however, OCTanner believes that there can be an 83 percent rise in engagement when companies recognize the small wins employees have at work. There is a very obvious problem and a very simple solution but we still often fail to include engagement sufficiently in our HR strategies for business growth. Even if big gestures are beyond a company’s budget, verbal and social recognition can work wonders. Gallup reports that public recognition and getting promoted are among the most memorable types of recognition a company can offer and HR teams need to capture these aspects and respond correctly to contribute to business success. Other strategies include:
Enabling collaboration across teams and departments Encouraging communication and organizing channels for it Providing avenues for employees to express their opinions and feedback Team building activities tailor-made to the specific organization and team Conduct regular surveys of employee work-load, work culture, job satisfaction, etc. especially after new policies and changes are introduced Explore the many forms of rewards and recognition programs you might be able to employ Conduct regular performance reviews and feedback sessions, and acknowledge employees who have improved performance Assess current feedback-sharing processes and mechanisms and ensure they are constructive Take feedback from clients and customers to feedback into your systems Use team-building activities and other forms of engagement Allow employee resource groups (ERGs) to flourish within your organizationHR Analytics and Data-Driven Decision Making
For businesses wondering how HR can contribute to business growth, considering numbers might be something they are already familiar with, although using metrics in addition to sales and revenue. HR strategies for business growth take into consideration the existing potential of the workforce in comparison to its future potential to assist organizations in scaling up their operations carefully. Gartner’s HR trend of 2024 showcases HR technology as one of the top priorities for the next 12-24 months. Companies can not only lighten the existing load of work but also predict what their workforce will need in order to stay at the top of their game. HR strategies for contributing to business success include:
Skill-gap analysis to understand where the workforce is faltering Defining and tracking KPIs (Key Performance Indicators) to ensure there is an upward progress Analyzing time-to-fill, cost-per-hire, and quality-of-hire metrics to optimize recruitment strategies Using past data to plan and predict future results Analyzing the needs of the workforce and establishing their interests, preferences, work priorities, etc. Proactively addressing turnover risks by analyzing patterns and taking preventive measures Alinng hiring strategies that plan ahead for growth in the workforce rather than hiring on an emergency basis—forecasting staffing needs can ensure good quality hires Conducting cost-benefit analyses for HR initiatives, such as training programs, employee benefits, and wellness initiatives Implement real-time data dashboards for HR metrics to enable quick decision-making Assessing workforce alignment with company goals and taking corrective measures Collating data from exiting employees and using it to improve the company Linking engagement data to business outcomes and developing action plans accordinglyPrioritize Growth Opportunities to Contribute to Business Success
CareerPlug’s survey of the workforce found a lack of growth opportunities to be the most common reason for quitting a job and we agree—employees who do not see any potential for growth or internal mobility are likely to leave. It is often easier for employees to move ahead in their careers when they switch jobs and that is exactly what they resort to. HR leaders need to actively prioritize the employee’s growth if they want to contribute to the business’s success.
Conduct regular assessments to gauge employees’ strengths and weaknesses Optimize the use of the employee’s strengths and use performance improvement plans to improve on weaknesses Identify high-potential employees and develop them to take on leadership roles Develop training programs for key areas like communication, leadership, decision-making, time management, etc Develop and regularly update succession plans to ensure a pipeline of leaders for key roles Ask employees about problem areas and assist in eliminating struggles Establish peer programs and mentorship projects that create an internal support network Chart out a career course for employees joining the company, on what avenues of success they might see—work with them to regularly update the same Encourage interdepartmental transfers and role-switches to help individuals develop well-rounded skill Internal transfers are a great way to retain top talent Adapt workforce planning strategies to changing market conditions and growth opportunities Conduct training to help employees stay up-to-date with the latest trends Encourage creativity and initiative within the organization and provide a channel for employees to share their ideas Encourage employees to participate in industry events, conferences, and professional networking Ensure employees have the skills and knowledge needed to leverage new technologies effectively Implement continuous improvement programs to refine HR processes and enhance employee experiencesThe HR role can be incredibly versatile and so are the ways in which HR can contribute to business growth. Companies need to seriously approach HR and initiate communication with them to explore HR strategies for business growth and what they need in order to contribute to business success. This collaborative effort can ensure the HR team works on tasks beyond admin work and considers the future of the overall company.
The post How Can HR Contribute to Business Growth and Help Envision Future Success? appeared first on The HR Digest.