HR means Higher Revenues
July 31, 2006
I stole the title for this post from this Fortune Small Business article which recaps a survey of over 300 small businesses. The survey concluded that HR can be the deciding factor between an “explosive” business and a “sluggish” one (and they have some really cool cartoons that highlight the points, like the one to the left).
There are some very good supporting points, but my favorite is this one: Companies with controlling bosses lagged companies that give employees more autonomy. By a lot. Those with more autonomy had faster revenue growth (14.6% to 3.2%), profit growth (8.7% to 4.8%) and lower turnover (8.5% to 23.6%). (Wowza!)
I’m starting to think that this goal of HR being strategic is too tame. When we can show that HR means more money, everyone should pay attention.
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