How HR Saves a Company Money

Acquiring a human resources employee or contractor is an investment you make to improve the quality and value of your business. While adding this asset does cost money initially, the long-term payoff in adding these services will save the company untold amounts of money in the following ways:

  1. Ensuring diversification in the workforce

  2. Creating a supportive company culture

  3. Compliance of ever-changing workplace laws and regulations

Diversification in the Workforce

Today’s hiring landscape is more complicated than ever, making it more challenging to not only acquire the right talent, but to do so properly and reap its benefits.

Building a workforce that includes employees of all backgrounds has been proven to increase the all-around success of a business. To prevent improper hiring practices, assess the candidate pool to ensure the candidates are not all of the same background; examine the language and context of the listings to avoid alienating certain groups; and remove bias by implementing blind hiring or using software that hides personal information to prevent any unconscious bias.

Responsible Company Culture

One of the biggest draws in today’s recruiting practices is the overall company culture, which adds to your overall brand identity. Unfortunately, it’s often the culture that causes misconduct issues across the workplace.

Last year, a survey of 150 human resource representatives revealed that roughly one in 10 employers cancelled holiday parties, and only 47.8 percent surveyed said they would provide alcohol due to employee misconduct issues. However, according to the Society for Human Resources Management, no amount of training or post-problem investigations will help eliminate misconduct until a company chooses to invest in a “culture of civility.”

A dedicated HR professional has already acquired the proper training techniques needed to avoid a toxic culture that leads to costly lawsuits and executive firings. They can also determine how to best spend valuable company funds for proactive and preventative measures.

Maintaining Compliance

Federal, state and local employer/employee compliance laws are crucial when a company workforce is growing, but a company has to know these laws exist to comply. A high-level review of these topics is necessary for every business owner, but one must also dive into industry-specific regulations to avoid costly fines and legal actions.

One example is the Ban the Box movement, which is currently supported by 29 states. Ban the Box refers to the elimination of the box indicating criminal history, as checking this box almost always meant the individual was not going to be hired. Unfortunately, this practice too often condemns an otherwise qualified individual for a mistake they made years ago.

Additionally, accommodations for pregnant and nursing employees are gaining momentum after years of being overlooked. Legislation is working its way through government entities to protect pregnant workers on the job, similar to the Americans With Disabilities Act.

A company without an HR department is missing many opportunities and placing the business at risk. Working with a professional HR consultant will not only save a company money on employee turnover costs, but prevent potential lawsuits and increase employee satisfaction in the workplace, which in turn boosts productivity.