West Hollywood, CA – August 30, 2006 – Ask most employees what the function of their company’s human resource department is, and it’s likely the last thing you will hear is “making a profit”.
Human Resource departments balance several different roles within a company, acting as internal consultant, handling administrative duties and working as an advocate for both employer and employee. But recent studies and literature have concluded that the HR department is an integral part of the company’s bottom line.
In recent years, business books like Michael E. Echol’s “ROI on Human Capital Investment” and Jack J. Phillip’s “The Human Resources Scorecard,” have drawn a direct link between how a company manages its people and positive financial performance. It’s a concept that has also been backed up by consulting firm Watson Wyatt, which conducts its annual Human Capital Index report that studies the impact human resource services have on a company’s value.
As competition becomes more fierce in a global economy, it will be necessary for companies looking to squeeze profits out of every part of their operations to start investing more thought in HR departments, something that has been somewhat remiss.
“Unfortunately, most organizations view human resources as a necessary evil,” said Ari Rosenstein, Director of Marketing for CPEhr, one of the largest and most experienced human resource consulting firms in California. “While it’s true HR often handles the mundane day-to-day employee paperwork, they are missing a tremendous opportunity to view HR as a method in which to increase business revenue.”
It may seem like a no-brainer, but employees that are well-trained, rewarded and respected end up contributing to a better bottom line. And it takes the right human resource leadership to ensure employers are making the right decisions with regard to their most valuable resource, their employees.
CPEhr – a human resource outsourcing firm with close to 25 years of experience servicing 13,000 worksite employees in 24 states – provides the answers by helping companies create an environment that celebrates its employees, while maintaining a close watch on overhead costs. CPEhr’s many services include showing businesses how to establish appropriate policies and deal with complex issues that impact financial performance.
“By investing with CPEhr, our clients are able to see a return in two areas,” said Rosenstein. “First, by hiring CPEhr to administer their employee-related paperwork and answer HR questions, they’re able to free up time to focus on more valuable business activities. Second, by implementing employee-development programs, such as training, internal surveys and performance evaluations, CPEhr helps foster a worker-friendly environment where employees feel respected and appreciated”.