The Financial Advantages of Human Resources – HR Affiliates Blog
The most common question we get is “Does my company really need HR?” The short answer is “Yes.” The longer, less ambiguous answer is “Yes! And here are some reasons why.”
But first, let’s have a look at the state of the American economy today, then we’ll talk about how HR Affiliates can help your business through both the good and not-so-good times with our outsourced human resources services.
Ask a few business owners and they will all likely tell you the same thing: there are more job openings out there than there are people seeking jobs. How does this happen? According to the Washington Post:
- In the US there are 10 million job openings and 8.4 million unemployed.
- Resignations are the highest on record — up 13 percent over pre-pandemic levels.
- 3.6 million people retired during the pandemic, two million more than expected.
One of HR’s critical tasks is the recruiting and retention of employees. In today’s job market, seekers can be more selective so it’s critical to have a dedicated professional identifying qualified and motivated candidates.
Hire the wrong person and, according to some estimates, the cost of that bad hire can be as much as 30% of the employee’s first year earnings. Recruiters like the ones at HR Affiliates can recruit qualified candidates quickly and at a lower cost than the traditional percentage-of-salary model. So you can save money and improve retention rates at the same time.
Improve company culture
In addition to helping your business hire and retain employees, a good human resources department cares deeply about the company’s culture, and recognizes the effect it has on employee performance and longevity.
- 66% of the workforce is disengaged.
- A strong positive culture can enhance engagement by 30%
- 41% less absenteeism results in a 19% increase in operating income, and a 28% increase in earnings growth.
- Organizations with great culture experience only a 14% turnover rate; organizations that ignore culture have a 48% turnover rate, 33% decrease in operating income, and 11% decrease in earnings.
As Gallup has observed, two-thirds of the workforce is disengaged. But a good company culture can improve nearly all metrics. Engaged employees are happier, and happier employees are more productive. Just as a good HR department can assemble a top-notch staff, it can also improve that staff’s performance, turnover rate, and operating income with a strong, welcoming culture.
The bottom line
Yeah, it improves your bottom line too.
For more information about how HR Affiliates can help your business recruit, retain, and thrive, give us a call today.
- How to calculate turnover rate — Bureau of Labor Statistics