5 ways HR can directly improve your margins and revenue
Building a high performance culture that’s people powered requires a concerted effort from today’s HR professionals. How can we approach it?
- Measure what Matters
HR measures used to consist of labour turnover, sickness days and number of vacancies filled or unfilled. While those measures are still valid at an operational level, if you want to directly influence revenue growth then begin with top-level measures.
If you aim to directly influence revenue growth, measures should have three characteristics:
- Strategic importance,
- Commercial significance and
- Extensive impact.
“Remuneration as a percentage of Revenue” ensures that during times of growth your payroll costs are not getting out of hand. Another useful metric is to validate your selection processes to test the “Time to fill” vacancies. If your time to fill is more than 4 weeks we can help you improve your process.
- Communicate the need for high performance
Get your employees behind the high performance that’s needed for organic growth. Communicate with them about the current direction of the business. Review and translate market data into employee speak so staff understand why the push to high performance is needed. Use a number of forms of communication to match the way that individual employees like receiving information.
Use focus groups to ensure employees know how they can help the business reach its goals. Follow this with newsletters to back up your message. For the reflectors in your business, post information onto the company intranet and provide a Q and A sessions so that they can pose questions at a later date.
- Revise Reward and Benefits
Your Reward System should provide a clear line of sight between what the individual does on a daily basis to help achieve the business plan to improve margins and revenue. A cleverly constructed Reward System will revolutionise the way that employees are managed, encouraged and recompensed. With the right solution, Employees will become focused on their work performance.
Back the system up with relevant communication they will understand how their performance links to the organisation’s objectives.
- Smart Working Practices
Investigate how a range of Smart Working practices can improve productivity in your business by trialling flexible, hub, remote, annualised hours, part time or a hybrid of these. If you have people working remotely deliver them fast, efficient and cost effective learning, anywhere in the world using a virtual learning platform. Loads of evidence points to the fact that remote workers are 13% more productive than office workers.
- Outsource
Finally, as a general rule if it’s not your core business then consider outsourcing to specialists. Facilities Management, Payroll, Security all take up valuable time for HR…… leave your HR Team the time to concentrate on the important task of supporting growth in your business, the optimisation of revenue and improvement of margins.
Contact Ruth at rg@thechangedirectors.co.uk for help and proven methods in building high performance, people powered operations.
