Finances & Money

How HR Can Add to the Growing Revenue of a Business

3d37e50a136c4166978023b24f74dfe2Many businesses take the attitude that a Human Resource department is not a revenue-generating cost center and is in fact, a drain on revenue. And while HRM may cost money to maintain, there is a strong connection between HR-related actions and a company’s overall revenue. From staffing, training and benefits and compensation practices, there are numerous examples of how HRM can directly add to the bottom line of a company.

Once employers recognize these undertakings and the many more than HR professionals can offer, they can better manage their human resources as part of their revenue-generating resources.


Irrespective of business size and market industry, recruiting the right employees plays a massive impact on the success of a company. If you’re an employer that knows the familiarities of hiring staff, you’ll know that top quality candidates don’t just show up looking to start work. Employers all across the globe are moving away from resumes and interviewing and are, instead, using a more effective way to find and attract capable individuals to join their team. The answer? HR Management. Once HR specialists source and attract suitable candidates, using staff management software will then ensure that each and every one of these employees details are filed and effectively managed from the moment they commence employment until the moment they leave.


In order for a business to be profitable, it must be prepared to devote the time and money that is needed to correctly train its employees so that the maximum level of productivity can be achieved. The HR department within a company massively donates to increased revenue by performing training needs evaluations for each department and, based on these results, creating training programs to provide employees with the necessary info and properties that they need to thrive in their positions.


Many people often connect a business’s compensation policy with cost-cutting when in actual fact, compensation can be used to generate revenue. Instead of a company offering its employees in revenue-generating positions set salaries that offer them no incentive to generate more revenue, it’s a good idea to include performance-based pay and enticements. Sales representatives are not the only department that can benefit from such systems as production, marketing and any other department that may have targets to meet can also benefit from this structure.

Professional Services

As well as indirectly adding to the earnings of a company, a HR department can make a profit by offering specialized consulting services to third parties. And although it’s a practice that is not too common, some large well-known corporations including Disney and Southwest Airlines have found an extra source of income by having their HR departments provide a wide range of external HR services. Implementing this practice enables a business to retain the revenue that’s made from it while also popularizing the company’s name and brand.

Any organization, without an adequate setup when it comes to HRM, is bound to suffer from serious problems when it comes to managing its regular day-to-day activities. Something as simple as sorting out staff holidays could turn out to be an extremely disastrous affair if there is not a proper filing and management system working in the background. For this reason alone, today, companies all over the world are putting a lot of time and effort into setting up effective HRM, which once in place, will add to the growing revenue of them companies.

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