Companies who adapt to best hiring practices will have better profit margins than those that were less capable recruiters. Employees are the foundation of any organization. Recruiting is powerful, that if you don’t bring in the right talent, the other HR functions suffer. Your ability to retain workers and your overall employer brand recognition deteriorate if your talent pool doesn’t align with your business. In many ways, recruiting should take into account these functions because employer branding makes candidates want to apply in the first place. Recruiting is the function that attracts and selects future leaders, analyzes organizational requirements and gets the most performance at the lowest cost. It’s the reason why headhunters are paid well by companies.
In Mid level rankings, some HR functions are important for an organization to function. These include mastering HR processes; global people management and international expansion, enhancing employee engagement, providing shared services and HR outsourcing, managing diversity and inclusion, managing change and cultural transformation.
HR functions with the lowest overall impact on the bottom line included transforming HR into a strategic partner, managing work-life balance, health and security management and organisational restructuring. The lowest-ranked function was managing the aging workforce, which had just a 0.8 times impact on revenue growth. HR can play a strategic role in succession planning, supporting key influencers and decision-makers, maintain diversity and knowledge transfer from exiting employees. Work-life balances a critical element in the recruiting and retention of Generation Y. They expect it and aren’t interested in working at a company without it. Health and security are also important especially for older workers who typically are less inclined to job-hop (relative to younger ones). They need a stable environment and health benefits. Finally, organisation restructures are important because the business world is constantly changing and companies have to evolve their organisation to align to new business opportunities