Organizations live-or-die by the bottom line. However, the HR department typically plays only a minor role in improving the bottom line. They are typically viewed as a cost rather than a profit center. Fortunately, HR departments can help measurably improve profits. They need to find ways to:
- Increase profits
- Decrease costs
- Make employees more efficient
- Improve productivity
Human Resource managers can reap tremendous personal benefits by helping their companies improve profits, such as:
- Earning the status of strategic advisor vs. an administrator role.
- Earning higher bonuses or percent of profit improvement
- Being sought out by employers and search firms that have their eyes open for profit improvement talent.
Typically Human Resources is responsible for the largest part of what effects a companies budget. The list includes payroll, benefits, wellness, workers comp, safety. Turning HR into a profit center requires a progressive, forward-thinking approach. That means letting go the status quo to go from being viewed as mainly providing service at a cost or at profit-oriented human resource management.