Cultivating Revenue: How Strategic HR Management Boosts the Bottom Line

Cultivating Revenue: How Strategic HR Management Boosts the Bottom Line

July 1, 2024

Astute business leaders generally agree that their most valuable asset is their labor force. And yet, managing that workforce effectively remains an elusive goal for many. Many organizations struggle with navigating the many and complex legal, logistical, and sensitive aspects involved in overseeing a workforce—let alone getting ahead of HR challenges before they’ve arisen.

To borrow an agricultural metaphor, think of your organization as a field ripe with potential. By sowing thoughtful HR planning into your company culture and strategy for growth, you are cultivating your company soil now to reap greater profits in the coming seasons. As a farmer might seek expert advice for optimal crop yields, when your in-house expertise doesn’t cover challenging scenarios, seeking the expert advice of an HR consultant or HR support team can help you bridge skills gaps while boosting your bottom line. Below are some of the key ways in which HR expertise can contribute to a healthy revenue culture.

The Impact of Organizational Culture on Hiring & Retention

Leadership style, treatment of stakeholders, and operational processes all form an organization’s culture and impact its performance. Whether we’re talking about a for-profit company, non-profit foundation, government, or tribal entity, your organization has developed a unique culture by the way it operates—in other words, how it leads and treats its customers and employees, and the systems and processes it uses to perform business activities. Each of these factors contribute to a company’s culture, which impacts its bottom line.

How? An organization’s culture and reputation play a key role in attracting applicants, retaining high-value employees, and ensuring compliance with laws and regulations. When workplace culture is weak, these business initiatives are negatively impacted or put at risk. Low morale, inhibited productivity, and increased internal conflict are all symptoms of a weak organizational culture —which reach far beyond the office environment and affect profitability.

Consider the metrics that are available to your organization: Employee turnover is measurable. So are employee engagement survey data, legal claims, and compliance penalties. The financial impact becomes even more clear when we’ve factored in the costs of recruiting, onboarding, and training new employees. These costs happen each time an employee leaves the company for any reason. Moreover, these costs compound when factoring in the lost productivity during transition periods from a former to a new employee.

A strong and engaging company culture is a significant factor in helping an organization attract and retain quality hires, motivate team members, and ultimately realize greater revenues.

Succeeding Through Organizational Transitions with a Trusted HR Consultant

Many startups and entrepreneurs make their initial hires from their circle of friends and supporters, meeting their immediate needs with the help of enthusiastic go-getters. As their enterprises take off, however, their challenges quickly evolve, and the skillsets they required at the outset may no longer serve them.

These situations occur every day in business but may only happen once for a particular set of individuals. By carefully assessing the situation, we may find an opportunity. It could be for an employee to learn new skills, switch to another role, or see a need to provide a soft landing for someone who was key to starting the company.

Working with an experienced HR consulting team can mean the difference between maintaining a positive relationship or finding yourself or organization at the wrong end of a costly legal battle. HR consulting experts are skilled at helping guide conversations to practical and winning solutions for all involved.

Skillsets to Meet the Need

Technical skills (hard skills) are easier to quantify and evaluate in employee reviews or interviews. Soft skills, such as communication, critical thinking, creativity, and empathy may be harder to gauge. However, both types of skills ultimately impact retention, productivity and the bottom line.

Often, leadership assign HR responsibilities to finance managers or other department heads who lack specific training in human resources. While these managers may excel in their primary roles, they may not have expertise in specialized skills such as conducting complex HR investigations, writing labor-compliant employee handbooks, and navigating difficult conversations. Mismatched or underdeveloped skillsets in these areas can have far-reaching consequences for employee experience, compliance laws, productivity, and ultimately organizational culture.

An effective solution to this challenge is to engage an experienced HR consultant. This approach can be both efficient and cost effective, as the consultant can serve crucial functions, like mentoring in-house staff on HR best practices to carry forward, and directly handling tasks that require specialized HR experience. From the finance manager who may feel out of their depth, to the team member whose situation requires seasoned expertise, a trusted HR consultant can fill in skills gaps to improve everyone’s experience.

Companies routinely face singular and complex challenges. By investing in an HR consultant or consulting team for unique projects, you allow your internal team to focus their skill-building on daily operations, rather than resolving one-off challenges and developing less relevant skillsets to the jobs you’ve hired them for.

Living a Revenue Culture with HR Consulting

Cultivating a revenue culture is intrinsically linked to effective human resource management. From fostering a positive organizational culture and making smart hiring decisions to managing transitions and balancing hard and soft skills, each aspect of HR plays a crucial role in driving productivity and profitability. By investing in thoughtful HR planning and leveraging expert consultancy when needed, organizations can create an environment where employees thrive, productivity soars, and revenue growth naturally follows. Remember, your workforce is not just a cost center, but a powerful engine for revenue generation when properly nurtured and managed. By prioritizing these HR considerations, you’re not just building a better workplace – you’re laying the foundation for sustainable financial success.

REDW’s HR Consulting leaders recently shared their expert insights on the Living a Revenue Culture podcast.

Cristin Heyns-Bousliman, Principal and HR Consulting Practice Leader, and Sam Bolen, Director of HR Consulting, invite you to watch and learn more about how REDW helps maximize client revenues by addressing HR challenges.

Tapping into Trusted Expertise

The REDW Human Resources Consulting (HRC) team supports our clients by addressing unforeseen challenges and working with them to become more proactive in planning for future needs.

Contact us today to learn how we can help your organization achieve its revenue goals.

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