How HR Can Drive Revenue

How HR Can Drive Revenue

Business woman holding financial report analyzing and planning how HR drives revenue.

Your human resource department is capable of much more than hiring, firing, and writing the rules. When you invest in a strategic approach, HR drives revenue through its initiatives. In fact, organizations that focus on employee engagement see three times the revenue per employee. Instead of thinking about HR as something you need to do to sustain your business, consider that it could be the missing piece that unlocks your company’s profit potential.

HR drives revenue by attracting top talent, maximizing their potential, and developing smooth processes that make life easier for your people. That sounds simple enough, right? At a glance, it’s a clear path from A to B – HR improves employee engagement, and employees boost their productivity as a result. If it’s that straightforward, surely everyone’s doing it!

However, only 32% of U.S. workers felt engaged in the workplace in 2022, according to Gallup. Yet, a handful of organizations managed to more than double that engagement rate. So naturally, HR initiatives played a prominent part in that success. In this blog, we’ll examine HR’s role in driving revenue for many businesses so that you can replicate those successes in yours.


Strategic talent acquisition and management

Finding your next great employee doesn’t begin and end with a job post. What you see on LinkedIn is just another piece of that puzzle. Average time-to-fill slowed to a snail-paced 11 weeks. Slow and steady might win you a race, but it can also lose you a highly sought-after candidate. With effective talent acquisition strategies in place, your open roles get filled faster with higher-quality workers.

Additionally, talent management expertise is the secret sauce that keeps your employees motivated and loyal. Talent management is a critical part of human capital management, and without an expert to guide that process, you expose your business to higher burnout and turnover rates. Aiding in employee retention and engagement is another way HR drives revenue over time.

For example, think about your onboarding process. How well-structured is it? Do employees feel prepared to hit the ground running once it’s completed? Clumsy onboarding slows down progress for your new employees, which means they’ll take longer to be confident contributors. HR experts create streamlined onboarding processes that get your employees up to speed faster, and that’s only the beginning.



A young gentleman of Middle Eastern decent, stands at the head of a meeting table as he leads his team in a meeting. He is dressed professionally on a collared shirt and has his hands out to help him articulate his points about how HR drives revenue. His colleagues can be seen sitting at the table in front of him listening attentively.


Training and development

Training and development fall in the same vein as talent management as an avenue where HR drives revenue. When done right, these processes deliver exceptional employee and business results. Companies that spend $1500 per employee every year reported 24% higher profits than those that spend less or nothing. That’s a reasonably small investment with significant potential for a notable return. By giving employees development resources, you get a more skilled and loyal workforce.

HR knows how to implement a formal learning and development strategy. It takes more than a Coursera subscription to upskill your team effectively. Using organizational employee data and feedback from workers and managers, HR conducts skills-gaps analyses that lock in on the most critical areas for improvement.

Your human resources department is also instrumental in correctly placing employees based on needs and career goals. When they take a skills-based approach to staffing, they’re 107% more likely to place employees effectively. However, that approach isn’t totally ubiquitous at this point, so having an expert guide your business is key.


Focus on employee well-being

Employee well-being is top of mind for organizations everywhere. Since the pandemic, HR has led the way on employee health and wellness. However, this goes beyond the typical health benefits companies have offered for ages. Of course, health, dental, and vision insurance benefits are essential, but businesses are learning that employees need more.

Burnout, worsening mental and physical health, and financial stress demolish feelings of engagement at work. Unhappy and unhealthy workers are a problem on a human and revenue level. As such, HR departments have begun to attend to the holistic well-being of employees.

Generally, this includes a four-pronged approach. HR teams try to attend to the physical, mental, emotional, and financial well-being of workers. Examples include gym membership reimbursements, investing classes, meditation apps, and team-building exercises. Of course, the tactics vary by company, but the goals remain similar – foster a happier, healthier, more productive workforce. In doing so, HR drives revenue for your business by increasing productivity.


Shot of two business colleagues shaking hands during a meeting in the boardroom


Change management

As we’ve all seen over the last six months, change is everywhere in the corporate world. Between mass layoffs and role-shifting technology, businesses have spent a lot of time scrambling to keep up. However, those are only the most recent headline-grabbing changes. In reality, change is a constant. 79.7% of businesses must adapt their organization every two to five years, but only 34% of change initiatives succeed.

Fumbled changes or transitions translate to poorer performance and employee engagement, which, of course, lead to dips in revenue. For example, perhaps a recent merger faced significant friction or surprise expenses. Unfortunately, mishaps like that can take a long time to recover from, and most businesses simply don’t have the runway for a smooth turnaround.

However, when you invest in strategic HR management, you give your business the best possible chance to navigate change seamlessly. They know where to look for potential pitfalls, and understand your organizational structure enough to adjust it effectively when needed.


How your business can invest in HR

As you can see, there are numerous ways that HR drives revenue. Now, let’s look at a few ways your business can support HR. First, equip your team with the right HR technology. Of course, some of these systems can be pretty expensive, but in the right hands, they’re powerful tools that, among other things, keep sensitive employee data secure.

Your HR team can also use an HRIS, ATS, or HCM software to analyze people data for projects such as improving diversity, equity, and inclusion. Certain systems fit companies differently. Deel, for example, is a unique HRIS and payroll software specifically designed for global companies (they’re also an ADDA partner). If you have employees around the world, that could be a useful tool for your team.

Another way to help HR drive revenue is giving your team HR certifications and training. Look to organizations like SHRM and HRCI for certification programs that highlight the skills of your HR professionals. You can also provide online courses to your employees that add to their skill-set and knowledge base.

For example, if they haven’t conducted a skills gap analysis before, online training could teach them how. Additionally, many universities offer master’s programs for human resources professionals if you can afford to supplement that kind of education for employees.

Finally, work with an HR outsourcing company to ensure you have the skills and knowledge you need to maximize your investment in your employees. HROs like ADDA provide expert consultants who can perform any HR function under the sun.

They can completely manage payroll, HR administration, benefits administration, and talent management. They can also supplement your team with specialized skills like HR tech management, DEI, or total rewards design. Furthermore, this option is generally more cost-effective than hiring an internal team.


ADDA helps businesses grow

ADDA’s experienced HR experts help your business achieve its potential. With our team handling HR, you can focus on the work that matters most. Contact us today to learn how we would handle your HR needs.

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