The most important asset of a business is its people and HR looks after those people, ensuring they’re working to the best of their ability and growing teams to where they need to be. Investing in your HR department is a wise move for any business looking to cultivate a positive culture, hire valuable colleagues and effectively manage talent — which should be the case in every business.
Hire the Best
A bad hire can be a disaster for a business. Not only is it a costly mistake, it can also have a negative impact on your company’s reputation, not to mention a harmful impact on team morale as they are put under extra strain as a result. Conversely, hiring the most effective and talented individuals is instrumental to the growth of your business. It’s important to get the hiring process right, which is why you need to invest in your HR team and give them the resources they need to carry out the process as best they can.
Investing in software that can automate certain aspects of the hiring and onboarding processes, such as XCD, can save valuable man-hours for your HR team and allow them to focus their efforts on finding the most suitable candidates for the job.
Organizing and managing training is a main responsibility of HR and so investing in the department ensures that the entire company receives strategic and effective training to help them improve their skills. Training is a powerful tool for ensuring that your business is always a step ahead and so supporting the HR team is a very worthy long-term investment.
Employee retention is incredibly important for the success of a business. A high turnover is costly and can give a business a bad name, causing the best new talent to look elsewhere. Moreover, it’s often unnecessary — a study by the Work Institute found that 77% of employees who left their jobs in 2018 could have been retained.
Exit interviews fall under the umbrella of HR duties and can provide valuable insight into how businesses can improve their retention rate, but by the time an employee has reached this stage, it’s far too late. A well-resourced HR department can dramatically reduce the number of employees who reach that stage from taking effective steps from day one. A study by Jobvite found that 30% of job-seekers left their job within the first 90 days, thus an HR department able to create a positive onboarding process for new employees will have to conduct far fewer exit interviews.
Moreover, constructive two-way performance reviews help the HR department to devise motivational incentive schemes and make employees feel as though they are valued. If an employee is struggling to meet their targets, it is up to HR to help them back on the right track — thus the HR department makes a huge contribution to all areas of the business as investment in HR is an investment in the entire company.