Written by Ben for IQ Dynamics
In the wake of an extended lockdown and significantly reduced consumption, Singapore has now entered into a state of recession. With so much uncertainty, cash conservation will be the order of the day.
As HR departments are cost-centres, their value to the organization is usually overlooked. From reducing employee turnover to streamlining processes, top-notch HR management can improve efficiency whilst reducing costs.
While not directly profitable, these improvements can contribute to the organization’s bottom line – something especially important in today’s economic climate.
We take a look now at the many ways in which HR professionals can increase revenue and add profitability.
There can be no doubt that employees are an organization’s greatest asset. In fact, the core principles of HR management revolve around helping employees achieve their full potential.
Through their work, employees drive their organizations forward whilst developing new world changing ideas. 13 years ago, Steve Jobs unveiled the first-generation iPhone to much fanfare. Behind this revolutionary device was a team of dedicated employees who despite immense pressure gave their all to the project.
These employees would enable Apple to achieve the status of the “world’s most valuable company” – a feat which demonstrated the importance of hiring and retaining quality employees.
As part of the hiring process, HR departments must thoroughly screen potential candidates to ensure that they are a right fit for the organization. Hiring new employees goes far beyond filling a simple vacancy.
Assessing factors such as cultural compatibility, values, beliefs and outlook is a critical aspect of HR department hiring process. Improved hiring practices leads to better motivated and engaged employees who will be more productive and profitable on the long-term.
As the needs of businesses evolve, so does the responsibility of HR departments. In today’s world, HR professionals are more akin to strategic partners than mere administrators.
For HR professionals, ensuring that their organization remains agile and competitive is now more important than ever. As budgets shrink and hiring freezes become commonplace, organizations will need to develop talent internally in order to achieve their goals.
This includes planning for the future to ensure that the organization is able to hit the ground running, post-covid. Doing so allows the business to aggressively leverage on any potential opportunities for profit.
Continuous improvement or CI is an aspect of TQM (Total Quality Management) that seeks to continually identify opportunities to enhance or improve work processes.
From a HR departments standpoint, CI can be implemented by automating laborious processes through the use of HRM software. From employee claims to personal details, digital storage eliminates the need for paper filing and helps save on storage space.
All of this frees up HR professionals and employees alike for more value-added work which will undoubtedly improve productivity and efficiency.
Whilst HR professionals may be doing their utmost best to help retain employees, layoffs and job cuts will likely be unavoidable in the future. Hence this is where HR professionals have a large role to play in managing the organization’s risk exposure.
These responsibilities include ensuring that staff policies are compliant with Singaporean legislation and safeguarding the interests of employees. Doing so can protect the organization from a potentially costly unlawful dismissal lawsuit.
As organizations seek to streamline operational costs and reduce expenditure, employees will likely have to take on additional responsibilities. All of this places a burden on already stressed employees and can lead to premature burnout and frustration.
HR department’s professionals need to have an open-door policy as a means of offering employees a helping hand. Being available for employees at all times, can be a huge benefit for the organization as a whole.
Employees will likely feel more appreciated and be better engaged at the workplace. Leaders must not take this goodwill for granted and should organize regular town hall sessions to address any concerns.
2020 and even parts of 2021 are likely set to be some of the toughest yet for Singapore. Where most business functions predict decreased business activities, it is crucial for HR teams to to step up and lead the way.
HRiQ is the perfect HRMS system for businesses with complex policies or special requirements across both HR and Talent domains. Catered towards larger enterprises while offering flexibility and automation in day to day workflows. Contact us with your requirements today.