Personnel administration, in the last 20 years, has assumed an increasingly important strategic role. In fact, a good strategy for the management of human resources, can greatly affect company’s profits. One of the main challenges for HR leaders currently, is to convince the executive management that human capital is one of the most important resources on which the company can invest. It is an essential step. With the aim to include human resources in the overall business strategy.

Staff Administration : HR and business strategy

In a perfect world of work, there wouldn’t be a line between the strategy for human resources management and global business strategy. A successful entrepreneur is who conceives and realizes the connection between the two strategies.

The development of human capital is important for longevity and success of a business.

In the past, personnel administration included only the processing of payroll and management of the financial compensation linked to employees.

The fund modern human resources management, however, includes the development of complementary objectives, starting with the staff.

HR and Business Productivity

The process of recruitment and selection of human resources is critical to creating a productive workforce. Finding and retaining top talent in the company affects the economic performance of any organization.

Even create a satisfying and safe working environment results as a way to achieve business goals.

According to human resources experts, therefore, human capital is the most precious resource.

According to new trends in the business, the development of modern HR technology becomes integrated in the engine to meet the wider business needs.

Interaction among the executive directors: the litmus test!

And it is possible to test the relationship between human resource management and corporate management, based on the interactions between executives. Many times, in fact, the HR leader is denied access to the board. Which means that, unfortunately, many companies do not appreciate the value of human capital.

The first way to improve relations between personnel administration and leadership is to demonstrate the ROI (Return on Investment) for HR management activities.

Finally, some considerations. A large number of factors can influence the relationship between human resources and the company in its overall. Managers must first understand the benefits of a HR strategy combined with business objectives.

The old management school, in this sense, is still too skeptical.

To put your business ahead of the curve and renew personnel management models used by your company, contact us now. Our experience in the staff administration will help you organize your business strategically in the most effective and profitable way.