Profitability through Human Resources

Most argue that human resource staff should be at the executive table doing all the firm’s hiring and strategic planning. Human Resource staff at as the gatekeeper of attaining and retaining top talent. Focusing resources on this misunderstood department is how we attain profitability through Human Resources.

The primitive notion that human resource is merely a function of payroll has to change. Human Resource Management contributes to the company’s culture, business development, and profitability.

Human resource management plays a crucial role in an established organization than what people think. This department can improve a company bottom line and increase profitability in several ways and among them are:

Strict Hiring Process

One way that human resource management can lead to profitability is through the employment process. The first step in this process is recruitment. The importance of recruitment can not be understated. Recruiting the wrong or right person will affect the organization’s culture.

The next step is training. Adequately trained and equipped employees are eager to perform their jobs efficiently and effectively and become more productive.

Reduced Turnover

Another way we can achieve profitability through human resource management is by ensuring the organization retains its staff. Reducing turnover is an important strategy for any organization. The cost of hiring, training, and investing in staff is high. Therefore is better to ensure you reduce the likelihood of staff leaving.

It is important to implement training, evaluation, and promotion programs. These programs will give staff the feedback they need to be successful and fulfilled in their jobs.

According to a study carried out by the [Center for American Progress]( The average cost of an established business enterprise spent to replace an employee is around 16% of their annual salary. Huge, isn’t it?

Maintenance of Balance Workforce

One of the new buzzwords in the Human Resource field is Diversity, Equity, and Inclusion. Having a hiring process that has a DEI lens will help your organization build a workforce built for the future. Creating a hiring process that is void of all the negative “ism” will help the organization grow. The more diverse the table more options for success.


Human resource management aims to maximize business organization productivity by optimizing the workforce of its employees. This mandate is real and unlikely to change despite the pace of change in the business world.