Typically, when we think about the “money makers” for the company, we think about the folks in sales, the account management people who keep customers coming back for more, and even the marketing folks for positioning our products or services in the best possible light to the best possible audience. But does HR actually make money for your company?
Well, turns out the answer is a resounding yes, although their revenue generation is far from direct. The biggest way your HR department makes you money is by finding the right folks to fill the jobs that DO make the revenue. They start by crafting a job description that perfectly captures the responsibilities and aptitude of the job and then are sure to roll it out to the websites and job boards where it is most likely to be seen by the folks most likely to fit the bill. From there, they tirelessly review resumes, interview candidates and help guide the selection process so that you can get the best person for the job.
But the fun doesn’t stop there. Sure, they helped you snag the perfect candidate, but they’re also responsible for providing the training necessary to help them be effective in their role and for the ongoing task of retaining said employee. Between re-evaluating their compensation, tweaking benefits offerings, and otherwise working out all kinds of perks, your HR rep is responsible for making sure your compensation package is competitive in an ever-changing market. In addition, they are the folks responsible for helping to carve out a pathway for each employee so that they receive regular reviews, can understand where they need to strengthen their skills, and ultimately get promoted and climb up the corporate ladder. Through this all, they’re also the boots on the ground to answer all the interim questions and make sure that folks are happy on a day-to-day basis and are going to stay for the long haul.
Again, the direct amount of money these HR reps make is hard to calculate because they do so much behind the scenes. However, if we simply look at the cost of replacing an employee, we can use the Work Institute’s estimate that employers lose 33% of their workers salary in replacement costs, we can see that they preserve at least $15,000 for every employee who earns $45,000. Multiply that by how many workers you have in that bracket – and beyond – and you might just find that your HR staff are your top-grossing employees after all!
Now, it would be remiss to note that your HR company also impacts your bottom line by (hopefully!) keeping you on the right side of the law. If you didn’t have your HR staff keeping you apprised of changes in various federal, state and industry work regulations, you could very quickly run afoul of the law, leading you susceptible to thousands – if not millions – in legal costs!
In short, when you’re considering your revenue earners, don’t be so quick to discount your HR reps. This should also factor into any decisions you make down the road in terms of outsourcing your HR needs to a PEO company or other HR administration agency like Abel HR. To learn more, call 800-400-1968.
