- Since I started working in HR, the business community’s view of HR has changed for the better. The growth of our role as business partners means that this department is less often seen as a “department no” (it seems that this award now belongs to the security service). I have been interested in watching this transformation, but I feel that companies can still get more value from their HR teams, which are underused in many places when it comes to business growth.
- During a growth period, especially after a funding round, there is often a significant increase in hiring. And while HR is often responsible for these hiring processes, I have seen many times other aspects of HR fall by the wayside. Increasing headcount can be significantly hampered if a company has to replace employees at the same time as new ones are added. It also complicates recruitment as well as onboarding, training, and team building. In these cases, HR professionals can be given the multifaceted task of retaining employees to the same extent as hiring. Here are three ways HR can drive business growth beyond its core function.
Retention for business growth
There are several reasons why retention drives growth. The cost of replacing employees is significant, especially when considering adaptation and lost knowledge. Companies that can retain their employees will find their onboarding and upskilling faster. It is also important to consider this during a period of significant growth, as replacement hiring will put additional pressure on hiring teams.
However, new hires or periods of growth can make some existing employees feel anxious. If a company doubles in size, it becomes a different company. Those who enjoyed working there when the business was small may not enjoy it as much as it grows. They may feel less valued, their influence is diminishing, or they may not agree with new decisions. These things can often be avoided with strong communication, and HR can greatly benefit by working on this with the leadership team.
Retention touches many areas of HR. Compensation is a key area; it is important to ensure that existing employees continue to be compensated according to market conditions as well as new employees. Close communication and involvement in the business are also important so that employees understand their role in the company and how they can continue to grow. And leadership is perhaps the most important thing. It is often said that people leave managers, not businesses, and this is a key area where HR can help grow a business.
Leadership Skills for Business Growth
If HR can build and develop a strong leadership team, it can make a significant difference in the success of the business. Maintaining and developing an existing leadership team is important for retention and hiring, as well as achieving business goals. The existing team of leaders is often overlooked for personal development, despite their importance to the business and despite each individual’s need for ongoing personal development.
Leadership development is also important for those who are not yet leaders in a growing business. First, it allows the business to hire people for their potential, growing them along with the business. This can be a key way HR can help a business grow by developing its people. And it promotes retention by demonstrating that people have a career path within the company and, importantly, that the business will support them in that development.
Hiring for business growth
Hiring is what many growing companies think of when they think of HR management. But not all hiring is created equal. Cost and speed are key components of an effective hiring process, and because they are tangible, we often focus on them when hiring.
The logic that better hiring processes lead to better people being hired and better people lead to better business results might seem obvious. And yet, without using HR teams to their full potential, it’s easy to overlook this. It is important to make effective processes part of the hiring strategy and to get management support to implement these processes. This can include a lot of things, from interview preparation to candidate preparation and even loot. But the most important thing is feedback. Providing thorough feedback to candidates at any stage of the process can make a company stand out. If HR can ensure that all members of the business understand the importance of this, the company will see results in the growth of its brand and business.
Final Thoughts
Each of these areas can be developed even further, but this requires qualified HR specialists who understand the goals of the business. By focusing on their core functions, HR professionals can bring significant value to the wider business and become a key part of how the business achieves its goals.
The Forbes Human Resources Council is an organization that invites only HR leaders from all industries. Am I right?