By working to create human resources departments that are agile, tech-savvy and fine-tuned to meet the many needs of their employees, companies can create strong workplace cultures. When workers are given the salaries, benefits and respect they deserve, morale remains high and companies can remain productive on a daily basis.

The benefits don’t end there. HR executives may have difficult decisions on their hands, including trimming budgets and tightening the salaries and benefits of their employees, but if handled correctly, these dilemmas can actually give companies a competitive advantage against their industry rivals. A good HR department isn’t just an internal asset – it’s a powerful weapon in the war to win external customers and ultimately increase profits.

Many consider an HR department to be something that’s seen but not heard in the outside world. That’s not necessarily the case. The following are four ways in which HR executives’ work is evident to everyone, inside their offices and out.

Forming strategic partnerships with other executives
The Nation notes that HR executives today don’t work just to cater to the needs of their employees – they also form alliances with top executives at their companies, including CEOs and CFOs, in order to help them understand the inner workings and the terminology of the business world. This transition has come along mainly in the last decade – whereas “traditional” HR execs worked reactively, responding to employee issues, the next generation of HR is about working proactively to improve upper management.

Projecting confidence to investors
In order to draw interest from investors and bring more financial capital into their coffers, organizations must project confidence to the outside world. Increasingly, HR executives are taking the lead in this regard, encouraging their employees to feel more optimistic about the financial present and future of their enterprises. In turn, the employees spread this optimism to the outside world, and investors become eager to buy in.

Retaining talented employees
If companies want to stay ahead of their rivals, it’s essential that they retain their best workers. From a competitive standpoint, retention is doubly important, as losing an employee to a competitor is both one company’s loss and another’s gain. HR executives must make it a point of emphasis to keep their prized employees happy, making sure they have the salaries, benefits and other intangible elements necessary to remain happy.

Fostering a productive workforce
At the end of the day, the best way a company has of beating its competitors is working harder and producing more. Every industry, from marketing to retail to information technology, is a race – whoever gets more work done ultimately reaps more profits. Companies must keep morale high in order to ensure productivity, and this begins with HR departments following their employees closely to make sure everyone is happy.

For companies looking to beat their rivals and become industry leaders, the struggle begins with HR. Strong personnel leaders breed winning companies, and the effects of their hard work are felt by everyone, not just those on the inside.

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