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How Does HR Add Value to an Organisation?

How Does HR Add Value to an Organisation

21st-century business thinking acknowledges that people can be the most critical asset in leveraging business performance. Undoubtedly, motivated, committed employees lift staff morale and make more significant contributions to the business bottom line.

Stellar staff performance doesn’t happen by accident. Getting the human resources component in your business right will help you cultivate good staff relations, improve morale and increase outputs.

How does HR add value to an organisation?

Good HR practices help motivate employees to take pride in their performance and maintain the highest possible standards. Good HR also manages to promote and maintain high morale levels.

One of the critical functions of good HR is to empower company leaders to focus on training and developing employees.

Good HR adds value to an organisation in the following key ways.

Improving People and Performance

There is a definite correlation between a well-run HR department, motivated, committed workers, and a business’ optimum performance. 

Long-term business success can be attributed to the talents of its people and their engagement and motivation. HR’s key function is to promote the link between people and performance and encourage management to train and develop all their people while recognising and rewarding good performers.

Acquiring and Retaining Quality Talent

Getting the right people in place is critical for businesses to build a strong foundation for growth. Good HR processes are vital to creating systems that recruit good people and train, motivate, develop, and retain them for the long term.

This process involves:

  • Drafting strong job descriptions that make it easy to identify the best person for the position.
  • Building robust and reliable interview and screening processes that can be applied consistently
  • Orientation planning and ongoing staff training
  • Designing practical employee evaluation tools
  • Organising meaningful compensation that will have a motivational impact upon employees. The compensation plan should leverage the business’ strengths, whether in the form of profit-sharing, share offerings, extra holiday benefits, or salary. An established company has more scope here, but startups can look at share offerings or profit-sharing initiatives.
  • Helping to maintain high-performance levels by keeping morale and job satisfaction at high levels. Ways that HR can assist in this regard include conducting employee surveys and focus groups to gain employee feedback about job satisfaction levels and improving or maintaining a good employer/employee relationship.
  • HR professionals can be that critical link for business leaders and managers between vision and people by setting clear people requirements and ensuring that the business is set up to practically match those needs. HR can often draw upon analytics and knowledge surrounding existing and future needs as well as relevant strengths and weaknesses. These assessments can be then used to identify potential opportunities and mitigate any possible risks.

Legal Protection

An often overlooked benefit of good HR practice is the protection sound HR practices offer you from legal costs associated with discrimination and wrongful dismissal. HR professionals are worth their weight in gold as you can rely upon them to be utterly familiar with all relevant employee laws and to keep business owners and managers informed and abreast of all matters relating to their business operation.

HR professionals must also consider all legal considerations when designing HR systems and procedures that can pass the tests of fairness and equality. Careful phrasing of interview questions to match the job specifications will help mitigate any discriminatory interview techniques. As workplaces become increasingly diverse, this aspect of HR is becoming more valuable.

Legal protection also extends into the safety and risk management area, where HR professionals can help design and manage practices to minimise risk.

Assist with Strategic Planning

As HR strategies are becoming a proactive management tool rather than reactive, HR professionals’ role is becoming a more central one in strategic planning operations. HR professionals can be called upon to contribute to SWOT analysis and assessments of current and future people resource needs and predictions of future compensation and training needs and trends.

HR can also help gain helpful feedback, reactions and suggestions about any significant change and how it is being received. Valuable feedback can be obtained about the new strategy and how, when and where it should be implemented. HR can be an invaluable asset in managing significant change and can be called upon to create, execute plans and strategies to implement change successfully.

Need help with your business’ HR? Get in touch with ChandlerWoods today for a discussion on how we can help, and be sure to follow us on LinkedIn for access to other useful resources.


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