Even if many small and medium-sized business owners may think of HR as somewhat of a burden, Human Resources plays a fundamental role in driving the success of companies. Regardless of the size, companies implementing strategic HR best practices have happier, more engaged workforces, which they can empower to focus on revenue-generating tasks and ultimately contribute to greater profitability.

Today, we will talk about some of the best HR practices you can start implementing in your company to improve your growth.

Read about the Top HR Best Practices to Drive Revenue Growth Here!

1. Prioritize Talent Acquisition and Retention

Attracting and training new people is always a cost, especially for medium or small companies. If these talented people stay, the return on your investment will be greater, and your company’s productivity will increase.

HR plays a fundamental role by implementing strategic initiatives that seek to attract, retain, and enhance the best talents. These efforts ensure that when you need a new member on your team, qualified people arrive and contribute to the growth of the company.

Likewise, HR must foster a positive and engaging work environment, which is crucial to retaining the best employees and ensuring that their talents and experience remain within the organization.

“The best HR practices are not just about compliance; they’re about driving business results. When you invest in your people, you’re investing in your bottom line.”
Dave Ulrich, HR thought leader.

Some HR Best Practices to Attract and Maintain Talent are:

2. Invest in Employee Development and Training

Most employees prefer to work in companies that give them opportunities for growth. Small and medium-sized companies usually offer this possibility since they can grow faster than large companies, but HR must invest in comprehensive training programs that provide employees with the skills and knowledge to do their jobs effectively and contribute to revenue generation.

This training also motivates your employees and gives them growth expectations, making them more willing to stay and continue working with you.

“Training is not an expense. It is an investment.”
— Jim Rohn, American author and entrepreneur.

Here are Some Different Kinds of Training You can Implement in Your Company:

3. Cultivate a Culture of Innovation and Collaboration

Innovation is the lifeblood of any organization that wants to stay ahead of the competition. A study by the Institute for Management Development (IMD) found that companies with a strong culture of innovation are 20% more productive than those with a weak or without a culture of innovation. This is because employees in these companies are more likely to come up with new ideas, solve problems creatively, and take risks.

Open communication, collaboration, and creative thinking are key elements to be able to have a culture of innovation. Employees should feel comfortable sharing their ideas, even if they are unconventional or unorthodox and creative thinking brings ideas to life, which is also important If you want to innovate in the company.

Here are some specific things HR can do to foster a culture of innovation:

Get to Know the Top HR Best Practices to Drive Revenue Growth in this Article

4. Leverage HR Analytics

If there is one thing that helps a company’s profits and decision-making, it is data. By leveraging the vast amount of employee data, the HR team can gain invaluable insights into your employees’ performance, commitment, and satisfaction.

This approach allows you to identify areas for improvement, make informed decisions about talent management, and optimize HR processes to increase revenue.

Automated data collection and analysis can also reduce manual tasks, allowing HR professionals to focus on higher-level strategies that drive revenue growth.

5. Measure and Track HR Impact on Revenue

Finally, implementing HR best practices is useless if you are not going to measure and track the impact of initiatives on revenue, providing a tangible way to show their contribution to the company’s bottom line.

For this, it is essential to establish KPIs for HR with clear metrics and objectives, such as employee productivity, sales growth, and customer satisfaction, among others. For example, tracking changes in employee productivity after a training program can demonstrate the direct impact of HR initiatives on revenue generation. Similarly, measuring sales growth and customer satisfaction before and after implementing HR programs can reveal indirect contributions to growth.

A good way to do this is by implementing software that automates HR functions, updates data in real- time, helping make informed decisions. 

Strengthen Your HR Practices

Happy employees are more loyal and productive, which will always be reflected in the final product, in the projects’ results, and obviously in your company’s growth.

The best HR practices are an investment that will yield short-, medium-, and long-term results. It doesn’t matter if you are a small company with a few employees or a large national company; you can always benefit from being at the forefront of everything related to human resources.

In Alliance Resource Services we are experts at providing human resources services to small- and medium-sized businesses across the state of Utah. For cost-effective strategies to help you skyrocket your productivity, contact us today!