HR functions are viewed differently by every company, some are progressive, whereas some are administrative and more reactive. In this article, we will discuss five key benefits of having a progressive HR department.
1) Attract, Develop and Retain Your Talent:
As the recruitment market picks up, high-performing candidates will have plenty of options. Whether you’re looking to recruit new talent for your organisation or have high levels of unwanted attrition, a progressive HR function can add real commercial value by enhancing your employer brand, improving your recruitment strategy, developing talent, and helping retain your top performers.
2) Create and Sustain Your Culture:
By bringing together values, company vision, beliefs and traditions, HR can play a crucial role in developing the identity that will help your business thrive. Integrating your company values into recruitment, onboarding, training, and succession planning processes can really protect your culture as your business grows.
3) Employee Engagement:
Imagine how much better your employees would perform if they enjoyed every aspect of their role at your company. Here are just a few of the benefits:
- Increased Accountability – They are more likely to take pride in their work. If they make a mistake, they will own it and work quickly to resolve the issue.
- Healthier Culture – They are more likely to be a proactive team player. They will see themselves as working towards a common goal alongside their colleagues.
- Improved Employer Brand – Those that love what they do are very likely to share their joyous stories with others, making your business a more attractive workplace.
- Greater Coaching Culture – Less micro-managing typically means increased accountability, initiative, and performance.
- Profit – Increased performance coupled with less attrition and external hires typically result in greater profit margins.
4) Change Management:
Each business will have its own challenges and opportunities, creating periods where agile change is required. Such transformation can naturally bring about uncertainty for many people. If not handled with care and effective communication, change handled poorly can often undo years of great work. A HR function that is commercially aligned to the business strategy can add real value by offering that balance between commercial and ethical needs.
5) Equality, Diversity & Inclusion:
McKinsey research suggests that diverse companies are more likely than ever to outperform less diverse peers on profitability. Organisations that have more females in leadership positions and greater ethnic and cultural diversity are outperforming others by up to 36% in profitability.
EDI can be culturally embedded into both organisational and personal values. There are several ways that this can be achieved including:
- Unconscious Bias
- Inclusive Leadership
- Gender Equality
- Benchmarking/Frameworks for Progression
- Strategy and Policy
It’s most effective when leaders consistently exhibit these values, and they are integrated into a company-wide approach. When everyone is aligned, the true benefits can be realised.
If you need your HR function to improve in any of these areas, please feel free to contact us: