The Human Resources Department as a Profitability Factor

The role of the Human Resources department is the subject of much discussion in recent years. I've often argued that HR staff belong at the executive table helping with strategy and the business. But, this argument assumes that the HR staff are thoroughly immersed in the business of the organization and the financials.

Too long have people argued that the "organization" is devaluing the potential of HR staff to contribute. Sure there is some of that in organizations. Many retain a traditional view that HR means administration and error-free transactions.

But, it's the HR department that has to re-educate management and themselves about their potential contribution to the business. Our two guest authors, Robert Furlong and Kenneth W. Moore (pictured), discuss this issue and suggest that HR as a profit center would transform the field - and the organization's view of the HR department. Groundwork must be accomplished first.

What would you do if you had a Human Resources employee who could improve the company’s profit margins, positively impact the cost of goods sold, lower the day’s sales outstanding, and increase the price/earning ratio while liquidating overhead costs to the business - and still deliver flawless transactional and traditional HR services? Most CEO’s would react in two ways:

• Why is this individual wasting his/her time in an HR department?
• Why didn’t I demand this level of HR department performance five years ago?

Find out more in The Human Resources Department as a Profitability Factor.

_{Images © Robert Furlong and Kenneth W. Moore}

More About the Changing Role of Human Resources

• How to Get a Seat at the Executive Table.
• The New Roles of the Human Resources Professional.
• HR as Product: Be the Brand of Choice.
• New Role for HR: Support Your Company's Brand.
• What Does a Human Resources Manager, Generalist, or Director Do?

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