In this article you will find out…
- How smart HR processes have a positive impact on the income statement
- How you work best with controlling and leading your HR processes
- Info about Onboarding in linking
Smart HR processes have a positive impact on the income statement
A recent survey shows that smart HR processes have a positive impact on the profit and loss account. Most important for boosting profits are leadership development, talent management and performance management.
Companies with well-designed HR processes have up to 3.5 times higher growth and 2.1 times higher profit margins than companies that have not developed their personnel policy. This is shown by the new report "From capability to profitability" from the Boston Consulting Group and the World Federation of People Management Associations (WFPMA).
The survey is based on a survey of more than 4,200 managers and HR managers in more than 100 countries. The survey measures the level of knowledge in 22 HR areas and compares the results with the companies' financial results.
How do you manage and lead your HR processes?
Do you ensure that HR processes work well?
By continuously adjusting the gap between how HR processes (recruitment, introduction, development, exit) are supposed to be carried out and how it is experienced, HR processes can be developed.
If we take introduction as an example;
A successful induction process, also called onboarding, integrates the new employee into the company and its culture, as well as providing them with tools, resources and knowledge to increase productivity and create loyal employees, i.e. ambassadors.
A poorly executed introduction, on the other hand, leads to the opposite and can, in the worst case, contribute to the new employee choosing to end their employment prematurely.
By measuring HR processes, you gain insight into what works well and less well and why. This gives you the opportunity to remedy deficiencies before they have a negative effect on the company.
However, measuring HR processes is not only effective in finding out what is not working, but can also be a useful tool to highlight what is already being done well. Without knowing exactly what works well, it's hard to keep doing the same thing.
Remember to measure HR processes for the right reason: to use the results to implement positive change.
