HR City

Can the HR Contribute to the Organization's Financial Status?

By SiliconIndia   |   Friday, September 28, 2012
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Bangalore: Tapping the power of human resources increases growth and revenue. Companies should start looking at human resources to maximize revenue growth and profit margins as mentioned by Joanne Sammer in businessfinancemag.com.

The Boston Consulting Group (BCG) and the World Federation of People Management Associations in a survey interviewed over 4,200 HR and non- HR managers in over 100 countries. The study reveals that companies with a strong HR department experienced a revenue growth which is up to 3.5 times better than their peers.

The BCG focuses on only six out of the 22 HR fields it studied. These six fields are:

Leadership development
Recruiting
Talent management
On-boarding of new hires and employee retention
Performance management and rewards
Employer branding

Among the above six fields, highest performing organizations differentiate themselves in three fields - leadership development, talent management, and performance management and rewards. These three fields are the most striking areas between high performing companies and less performing companies.

Development of Leadership:Leaders and potential leaders working in higher performing organizations know how to grow in the organization. These companies present some role models to provide clear ideas to their employees about what they expect. To add to the presentations of role models they also measure the potential of the leaders in developing the employees rather than sticking to the evaluation of a leader’s performance. They reinforce this development by combining pay and career advancement so that success can be achieved in this field.



Management of Talent:
Organizations are involved in reviewing employee’s talent and ample vertical and horizontal career-advancement opportunities apart from focusing on nurturing employees’ individual growth and professional fulfillment.

Management of Performance:
The high-performing companies reward behavior and not just results when it comes to managing and tracing individual performance. Transparency is also one of the important things in these organizations. Employees working with these companies know what metrics companies evaluate them and this inspire them to align their performance and actions according to the company needs.

Experts on HR
Dr. Sriharsha A Achar
CPO
Apollo Munich
Pradeep  Dhar
Director
Vitasta Consulting
Mahesh  Sheshadri
Consultant
Metis ERC (I) Pvt. L
Sravan  Raj Nayan
Sr Hiring Associate
Eka Software
Sakaar  Anand
VP- HR
CA Technology
Saurabh  Singh
National Head
Pearson
Thallin S Shetty
Human Resources
Mindlance India Pvt
Ravi Pratap Singh
Director
C2 Workshop
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