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How HR Can Save Your Organization Money

Posted by Lauren DiChiacchio on Jun 24, 2013 9:00:00 AM

Staffing Services, Temp Agencies, Healthcare StaffingSince HR departments, for the most part, are not revenue generating, there are organizations who do not understand the real value that HR brings to the table.  To these people or organizations, HR is considered a necessary evil or even a department that just adds to the overhead costs.  We truly believe that Human Resources is one of the most important parts of any organization and these are some reasons why:

Employee Retention

There is a cost associated with employee turnover.  The cost encompasses the time it takes to recruit a replacement, the time and effort to retrain the new hire, and the productivity lost while the position is vacant.  According to the “liberal-leaning-think-tank”, for all jobs earning less than $50,000 per year, or more than 40 percent of U.S. jobs, the average cost of replacing an employee amounts to 20 percent of an employee’s annual salary.

It is not advantageous to any organization to ignore the importance of employee retention.  A good HR department works hard to ensure that exceptional employees don’t leave.   HR teams work with managers to communicate clear expectations and set specific metrics for what defines success for employees.  On an ongoing basis, HR also provides mechanisms for frequent feedback to help employees feel valued and heard.  These activities are just some examples of ways that HR strives to improve employee retention and create an environment where employees are given opportunities to express their concerns before making any final decision.

Avoiding Law Suits

Lawsuits - whether justified or not - need to be defended and they are costly and distracting. HR provides the first line of defense for any organization to avoid litigation.

HR Professionals are trained to help manage organizational risk by being proactive and putting policies and procedures in place that protect the organization.  In order to do that, they are responsible for staying current on and understanding federal and state employment laws.
If done properly, employee handbooks are an essential part of mitigating an organization’s risk.  Often times, organizations do not understand the value of a comprehensive handbook until it is too late. HR ensures that the handbook has all the policies needed to provide a defense strategy against possible lawsuits.  

There are a number of daily tasks that HR completes to ensure that problems are addressed before they become lawsuits.  Some of these are treating all employees equally, maintaining detailed records, and documentation.

Implementing and Enforcing Safety Procedures

The Occupational Safety and Health Administration (OSHA) is the federal agency whose mission is to ensure safe and healthy working conditions by setting and enforcing standards and providing training, outreach, education and assistant.

Another component that typically falls under HR is to foster a culture of workplace health and safety and develop policies to guarantee that all OSHA regulations are in place and followed.
Two ways that safety impacts the bottom line is the costs associated with any fines for non-compliance with OSHA regulations as well as mitigating the costs of any workplace injuries.

These are just a few reasons we think an effective HR Department can be a knowledge base to utilize for helping to save your organization money and positively impact your bottom line.

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Staffing Plus is a premier healthcare staffing firm that provides temporary, per diem, temp-to-hire and permanent Staffing Solutions for Behavioral Health, Education, and Healthcare settings. We have leveraged decades of experience to assist organizations with the challenges of managing their HR and Recruiting needs.