In fact, one of the most significant issues in many
organizations concerns the notion of HR as a cost center, that is, the
department that may not necessarily have a positive net contribution to the
company’s revenue but has many overhead costs. Unfortunately, this view fails
to acknowledge the intrinsic role that strategic value resides in the domain of
HR, far from being limited to administrative roles.
And one of the main responsibilities of HR is the search for and attraction of personnel. This way, the turnover rates are lowered and overall costs saved as solutions cannot be provided with high frequency for the same monetary value. This makes it easy for the HR departments to provide companies with a good employees that can help make the organization more profitable (Kumar, 2021). Careers maintenance and employee motivation efforts are productivity enhancing and cost effective activities that lead to superior organizational outcomes.
Improving Productivity and Engagement
The human resource department also shields the
organization from litigations by practicing and enforcing legal provision on
labour relations. Non-compliance may attract severe fines, legal bills and risk
to organizational reputation. HR’s function in setting policies, handling
employees, and training people for behavior in the office minimizes the
possibility of lawsuits, which may be far more expensive than organizing HR
compliance (Fernandez, 2020)..
Although the
work of the HR department presupposes certain costs, it cannot be regarded as a
mere costs center. HR major functions as the provider of talent, productivity,
and risk management solutions are in line with the organizational objectives
and profitability. Such attitude towards HR as the driving business value
instead of seeing it as one more expensive cost means that organizations can
successfully unlock organizational potentials of the employees fairly well.
References
Fernandez, L.
(2020) ‘HR compliance: Protecting organizations from costly risks’, HR
Management Journal, 11(1), pp. 20-25.
Kumar, R.
(2021) ‘Talent retention and the bottom line’, Global HR Insights, 8(2),
pp. 15-20.
Thompson, J.
(2022) ‘The impact of employee engagement on productivity’, Organizational
Performance Review, 14(3), pp. 10-16.










