For most businesses, staff are their biggest overhead, as well as being their biggest asset. It’s crucial to hire good people, keep them engaged, and prevent them from wandering off to your competition.
Many business owners spend a lot of time looking at areas for cutting costs. Stationery, vehicle running costs, electricity efficiencies etc. However they don’t spend time looking at the other side of the same coin – efficiency improvements. By looking at how efficiently staff are operating, and the business’s human resource strategy, you can increase your bottom line.
From where I sit it seems businesses don’t look at their HR for one main reason. Cost. The cost/investment of getting your HR right is miniscule compared to the cost of getting it wrong. Getting your HR right increases your bottom line through:
- Having motivated staff working harder
- Hiring the right people who fit in with your organisation’s culture
- Addressing the small problems in your business before they become big problems
- Following correct procedure to prevent personal grievance suits (this is at the bottom of the list for a reason – proper HR is more than just avoiding grievance suits)
The chances are that your cost/investment in getting your HR right will be far lower than the cost of getting it wrong. How do you get it right? By getting help. We like the folk at Blue Dot, or for the ‘DIYers’ out there have a look at Virtual HR.
Sure, this is nothing about accounting. But it is about growing your business, which is what iif is about.