4 Ways to Prove the ROI of HR

To the average employee, HR may seem like this scary, monolithic force at their company. After all, the HR department is where employees are let go and where disciplinary measures may be taken. Others may view their HR colleagues as cost centers, rather than profit centers. While the specific views may slightly vary, the consensus seems to be that HR is a necessary evil in the journey of any business or organization.

This view of HR is unfortunate. Even though HR professionals may not be designing the latest game-changing product or closing that company-changing deal, they generate a significant ROI for all types of organizations.

Ultimately, there are four key ways that you can prove the ROI of your company’s HR department. By leveraging these four strategies, you can better advocate for your HR colleagues and potentially obtain more funding to complete this important work.

Stress Your Company’s Recruiting Processes

While the precise duties may vary, a company’s HR department plays a large part in bringing stellar talent into your organization. From the early stages of the recruiting process to initial onboarding, your HR colleagues are front and center in helping your company find knowledgeable and hungry employees.

Your HR department should always be thinking of ways to find outstanding talent and improve your recruiting process. That being said, what you can do right now is show how your recruiting processes are contributing to your company’s bottom line. The simple fact is that smart hiring can save your company significant amounts of cash. While a bad hire can financially harm your company and contribute to poor morale, a stellar hire can take your company to the next level. In other words, HR professionals indirectly direct the company towards its larger goals.

Emphasize Your Corporate Culture

You can also show how your HR department contributes to your company’s culture. According to one study, a strong positive workplace culture can increase employee engagement by roughly 30%. This increased employee engagement can result in around a 20% increase in operating income and a 28% increase in earnings growth.

While HR departments can’t necessarily create corporate cultures by themselves, they can influence them. Things like regular reviews or feedback sessions, employee happy hours, or decisions on employee benefits can massively impact your company culture. Highlighting those benefits will help others see the value that HR professionals create.

Show How You Contribute to Employee Promotion and Retention

HR professionals also help their companies retain and promote their employees. Yes, they may not be the ones making the final calls on these matters. That being said, things like mentorship opportunities and upward mobility can make your company more efficient and profitable. Employees are looking for these opportunities, as shown by a study by Glassdoor.

Because of this, make sure that you are highlighting your HR department’s contributions in this area. If you offer a company-wide mentorship program, for instance, show how that mentorship program has helped retain great employees and propelled them to larger roles. The goal should be to show how these efforts have helped your company keep star players and help them accelerate their careers.

Stress Flexibility

This final aspect may not be as applicable to your organization as others. However, if you offer it, it can be a massive benefit. Workplace flexibility is increasingly seen as extremely desirable by younger employees. It not only makes your colleague happier, but it can make them more productive.

Therefore, if your HR department has any autonomy over flexible workplace arrangements, make sure that you are emphasizing them. Show how they are contributing to employee happiness and your company’s bottom line. By doing this, you can show how your HR team is playing an underrated, yet important role in helping your entire company achieve its goals.

Get Started Today

HR departments may not get the most hype or respect in organizations, yet they play a vital role. Whether you work for a young and growing startup or a much more established corporation, your HR department is a hidden asset. If your colleagues have a negative or wary view of HR, make sure to emphasize the four factors above. By doing so, you will be well on your way to obtaining proper recognition for your HR colleagues.