09 Dec How Human Resources Effects Business Performance
Well-equipped human resources departments are proven to improve financials, according to a report released by the Boston Consulting Group that examines how human resources effects business performance. The report notes that those organizations where HR leaders are not able to partner with other business leaders don’t see the same financial benefit.
“HR functions need to connect by partnering with stakeholders both inside and, increasingly, outside of the company to improve operational and financial performance,” said senior partner at BCG and a coauthor of the report, Jean-Michel Caye.
The study pulled the S&P 500 index data and the top 100 list of the 2014 Fortune Magazine “Best Companies to Work For,” and found that these companies with “high performing” HR departments outperformed the index by 100 percentage points.
“Companies with lower financial performance adopt a more arbitrary approach to investments in HR topics,” said Rainer Strack, a senior partner at BCG and a coauthor of the report. “They don’t identify clear priorities, and they don’t focus their investments.”
The recent enterprise tech wave has made it easier to connect HR leaders to the rest of the organization and deliver insights that effect decision making.
However, as mobility and cloud computing has made it easier to drive employee satisfaction, social media is driving heightened awareness of trends in highly rated human resources departments. For organizations that want to improve their HR departments with greater efficiency, higher employee satisfaction and better financial performance, there are many software solutions available to make it easier.
For example, an enterprise resource planning package like Microsoft Dynamics AX is available in the cloud for publicly traded enterprises. With cloud services from RoseASP it is easier than ever to get SOX compliancy support and solutions. There are other solutions like Microsoft Dynamics GP which are available to SMBs in the cloud.
With functionality to support HR, reporting and planning or just about any processes across the organization, modern enterprise software includes role-based analytics and collaboration tools like video conferencing. Now a business is able to streamline and connect all of its departments on a single system for a more holistic approach to decision-making. Plus, self-service employee portals with the ability to connect on the devices they love will inspire employees to do more.