Is HR a RESOURCE center forming BRIDGES? Let’s consider a future where HR is an important piece of the puzzle for an organization’s bottom-line success.

The way it’s traditionally structured, HR is a cost center, not a revenue driver. It’s viewed as a necessary part of the business that is equipped to handle difficult personnel tasks including employee benefits, compliance, recruiting and policy enforcement. While these tasks are vital to an organization’s operation. In broader view HR is the RESOURCE center HR is a vast pool of RESOURCES and forms BRIDGES with Employees, Departments, Vendors, Suppliers, and Government Bodies.

HR is now called HC; the human capital. So, HR department is responsible for this capital acquisition, and effective deployment of this capital, it is not a profit center/cost center. It is indeed the Life Center of the company.

How much would you pay for a real competitive advantage when it comes to the people knowledge of your company?

That is a question we should be asking the business leaders in the departments we support both as HR generalists and recruiters.

The HR department can become a primary driver of competitive advantage in any company if it can focus on increasing revenues and reducing expenses through initiatives that clearly impact the bottom line. The HR department becomes strategic when it can prove to line management, through quantitative measures, that people-focused initiatives generate compelling ROI and competitive advantage.

How then can the HR Department become strategic? How can the HR Department drive financial returns?

By driving organizational performance through business measures and business performance processes, here are some simple measures that will streamline the processes and create more efficiency to shift the perception to a department that actually drives a financial return for the organization.

  1. Harness internal talent to streamline human capital management and organizational development. For example we can use an employee referral system to help identify and attract top talent. Also organizations can leverage their existing talent in new ways, as every employee has “hidden” strengths and resources that can greatly benefit a company and reduce its dependency on third-party providers.
  2. Employee retention equals money retention. Employee training and professional development doesn’t cost, it pays. Customer satisfaction actually follows from employee satisfaction and engagement. Now more than ever, employee loyalty and performance hinge on perceived job security and future employability.
  3. Promote and reinforce a culture of “doing the right thing”. Noted management expert Peter Drucker said, “Doing the right thing is more important than doing things right.” Doing the right thing is effectiveness; doing things right is efficiency. Focus first on effectiveness then concentrate on efficiency.
  4. Time Blocking. Use the time blocking technique to group daily tasks into a handful of categories and assigning each category a time to be worked on. Time blocking restores an employee’s control over their working hours and promotes efficiency and proper prioritization.
  5. Promote emotional intelligence coupled with situational leadership. Hire and retain leaders who are able to maintain perspective in talent management.
  6. “Engaged” employees will “engage” customers. Involving employees has an impact not only on profits and gross earnings but also on morale.
  7. Employees understand how their jobs affect the bottom line and how the bottom line affects their paychecks. When employees understand the vision and how they contribute to it and benefit from it, they are much more inclined to help achieve it, therefor it’s vital for a company to share its success with employees.
  8. Employees are given what they need to be productive. It may go without saying that employees in profitable companies have the tools they need to get the job done. But those “tools” are not always obvious and may include everything from training and work/family initiatives to competitive compensation and corporate ethics programs.

Last but not least “HR adds value to the bottom line by creating an attractive workplace that helps employees stay and want to be productive. When the nickel stands on end, you want employees pushing that nickel to the company’s side. If your company is a good place to work, with good policies and procedures and a good environment, productivity — and profit — increases.” As said by David Russo, formerly vice president of human resources for SAS Institute.

By: Amina Fouad

 This article is a product of a writing competition organized by Global HR Forum & HR Revolution Middle-East Magazine. Ms.  Amina Fouad won the third place in the HR Writer Competition. Judging Panel: Mahmoud Mansi,  Dina Marei, Alia Faramawi, Ahmed Saadalla, Nada Adel Sobhi. General Coordinator: Ms. Nour Elzeny.

Photography: Mahmoud Mansi