3 Ways Business-Integrated HR can Benefit Your Business

Does your company practice business-integrated HR? If the answer is no, maybe it’s time you consider it.  Howard Schultz, Starbucks CEO, said it best in The New York Times, “The discipline I believe so strongly in is HR, and it’s the last discipline that gets funded. Marketing, manufacturing — all these things are important. But more often than not, the head of HR does not have a seat at the table. Big mistake.”  If your company is the right size, it seems like having an executive level HR person, who works on business-integrated HR, as opposed to just compliance-driven HR, is a wise choice.  According to “How CHROs Deliver Business Impact: Five Things the C-suite Should Know About Talent and How HR Can Deliver It”  integrating HR into your business can majorly increase your companies success.  Reduced turnover, increased employee engagement, and increased revenue per employee, are all results of companies who choose business-integrated HR.

1. The numbers don’t lie in business, and companies with business-integrated HR, are far more successful than their compliance-driven counterparts. Companies with business-integrated HR, see a 40% lower turnover rate.  High turnover has lot of hidden costs, so this significant of a drop in turnover alone, is a reason to adopt this best practice.

2.  Many HR pros admit that employee engagement is one of the hardest things to improve in the workplace. With business-integrated HR, companies see an increase in employee engagement of 38%. This is another extremely significant reason businesses should steer away from compliance-driven HR.

3. As everyone in business knows, the most impressive numbers are the ones with dollar signs in front of them. This makes the revenue per employee for business-integrated HR, versus compliance-driven HR, all the more impressive. The RPE for compliance-driven HR is $98, 221. The RPE for business-integrated HR is  $270,647. That is an incredible difference, and HR pros and high up executives should both take note.

With these kinds of numbers at our disposal, HR pros should really start considering switching to business-integrated HR. Increased revenue, decreased turnover, and improved employee engagement, make the decision to switch to business-integrated HR, financially feasible. Including HR in your business strategy will no doubt become more and more common as research like this continues to pour in.


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