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5 Strategic Ways HR Can Maximize Your Profits And Reduce Costs

Guest post by Emily Martin

Even in the tech-booming 21st century, people are still a necessary and important element of the business equation…

…and one whose mismanagement can have greater financial implications than most even realize. Whether compliance with labor law or dealing employee issues, a less-than-ideal grip on matters regarding your staff can end up costing you in time, fines, and loss of valuable productivity- all of which quickly eat away at your razor-thin bottom-line.

The influence of an experienced, knowledgeable Human Resource partner on your business can make sure your business’ biggest cost gets maximum return and becomes your #1 asset instead of liability.

Here’s more on what engaging with an HR professional can do for your business:

1. Keeps you out of trouble

DOL, FLSA, ADA, DHR- these and a slew of other employee-protection-oriented acronym-agencies could show up at your door uninvited at any time. Whether routine, or spurred by a complaint from a disgruntled employee, audits and investigations brought by these agencies can open the door to substantial fines to your business if you are found to be out of compliance with file keeping, payroll, or employment practices. A valuable HR resource can keep you out of trouble by proactively ensuring you are in compliance so when there is a knock at the door, there is no reason to be afraid.

2. Helps you find and keep the RIGHT people

The performance of the people working for you can have a huge impact on your bottom-line, affecting everything from productivity, quality, and customer experience. For this reason attracting, selecting, and retaining people who are aligned with your mission, values, and expectations is essential to your business’ success; and just as important is keeping-out or removing those who are not. An HR partner can help provide best practice insight on all phases of your talent management to help avoid costly mistakes and wastes in recruiting, turnover, and productivity.

3. Maximizes your #1 cost and asset: people!

Attracting and retaining the right people is an important first step, but without a plan to effectively utilize and engage your people, the benefits of such efforts will be lost. From job description to overall structure, it’s important to be clear with your people about roles and accountabilities. Reducing ambiguity helps avoid the drama and distraction that can result from a lack of structure, and also contributes to greater employee engagement which can have a big impact on your bottom line. In fact, businesses with employees who indicate a high level of engagement see higher rates of customer satisfaction, higher productivity, and higher profitability- up to 21% higher in one study! An experienced HR-pro can identify and implement opportunities to enhance these elements in your business.

4. Offers peace of mind

Having an HR partner on your team designates an expert to stay up-to-date on your obligations as an employer as labor law rapidly develops. 2020 alone has been a great example of how employee-related laws on safety, leave, and other items can change on a dime, and without a dedicated resource it would be easy for a business to miss these updates and have it cost you in fines later. A valuable HR resource provides you with this information, and guides you through decision making on options and best practices for your business. Tagging an expert to juggle this, allows you to focus doing what your business does best – whether that’s designing breathtaking flower arrangements or perfecting the crispy chicken wing.

5. Provides valuable perspective and support

We’ve seen it all. And sometimes having some outside, experienced input is just what you need. Whether your organization is implementing a major change, experiencing a systematic issue, or just looking to modify a current business practice, an HR partner can help with coordinating an action plan that makes sure to include the biggest make-or-break factor: the people involved. A trusted HR resource can help leaders formulate ways to communicate effectively with staff and make tough decisions; and also suggest and identify the best ways to engage employees throughout the process. Injecting these best practices into your process can save time and money on otherwise learning the hard way, and helps drive those profitability gains earned through higher employee engagement.

This post was written by Emily Martin, Owner of Ally HR Partners LLC, a Buffalo-based HR consulting firm that helps small businesses identify and implement custom solutions to their people problems and opportunities. Often a business’ #1 expense, Ally HR Partners believes your people should be your #1 asset. Through an integrative partnership approach, Ally becomes your internal expert on all things HR including compliance assurance, performance management, and strategic HR initiatives designed to make the most out of your Human Capital. For more information about how Ally can work for you, visit


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Step Out Buffalo Business

Step Out Buffalo Business is a business focused publication featuring tips and tricks for entrepreneurs and small business people in Buffalo & Western New York. We write what we know and when we don't know, we ask an expert in the field. We've gained our knowledge through experience growing businesses in various industries.

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