5 Ways HR Can Contribute To A Company’s Bottom Line

how hr contributes to company bottom line human resources

If you are in HR, you probably may have faced skepticism when it comes to the incredible value that the human resources department adds to a company. This is an obvious situation and most of it begins due to lack of apt understanding about HR’s integral role in businesses of all sizes. 

Since HR undoubtedly is an integral part of a business, it should understand the company’s bottom line and align its strategies with the organization’s goals. To the contrary, HR teams often tend to devise their yearly strategies and their knack of contributing to overall organization strategies often gets overlooked unfortunately. This is often a result of a misconception, which goes like this: perceiving HR as a cost factor. For instance, inefficient HR operations and excessive admin work that call for additional resources for supporting the HR. 

Business leaders ought to wake up to the idea that HRs are closely tied with an organization’s most crucial asset i.e. its employees and thus, HR is very much capable of driving key business strategies. 

Here’s how HR can contribute to an organization’s bottom line: 

1. Leveraging The Power Of Automation 

It is no less than a nightmare to imagine an HR drain themselves in today’s tech-oriented world where things are done at the click of a button and lightning speed. Yes, automation can eliminate the plight of administrative work for an HR. A good employee management system can help automate routine yet critical HR processes such as payroll administration, employee onboarding, record keeping, etc. This frees up a good amount of time and importantly, resources thus, helping your HR focus on other key areas. 

2. Empowering Workforce On The Go 

Imagine how cool it would be if you never had those trivial questions pertaining to taxes and leave policies. How about letting your employees help themselves. Yes, this is very much possible with a good HRMS software that comes with built-in HR chatbot and self service portal that would serve your employees for all the routine enquiries related to taxes, leaves, etc. Employees could shoot their queries/messages to these HR chatbots via their self-service app on their mobile phones even when on the run. 

3. Compliance 

Blunders related to compliance can cost a company very dearly ending up with expensive amendments. Since employment policies and tax laws undergo frequent and rapid changes, it is a daunting task for HR to keep up. This is the reason HR ought to be a part of your boardroom meetings and the key to achieving that is freeing up your HR from their mundane admin tasks. 

4. Tracking Performance 

Whilst working to boost employee morale, it is equally imperative to retaining high motivation levels among the team. Here, insightful reports and analytics will assist in identifying key achievements and areas of improvements/opportunities thus, letting you focus on things that matter most to achieving business goals. What about putting to work a smart employee management system that automates the entire performance appraisal process. Time saved can be utilized to making workplace more addictive and fun for your employees. Because, a happy workforce is also the most productive workforce. 

5. Streamlined Recruitment & Onboarding 

How great it would be to connect with your employees even before they get aboard your organization’s goal plan. The right hiring and streamlined onboarding / training is the key to churning out successful leaders for a business. It is certainly a daunting task for HR to manage and implement training programs for employees and keeping track of the same. This is one of the biggest factors preventing HRs from part taking in other strategic chores thus, keeping them away from contributing to the company’s bottom line. 

HRMS software can pave way for a streamlined and automated recruitment as well as onboarding process thus, freeing up your HR from all the paperwork and admin tasks related with onboarding and training. 


It is advisable for HR leaders and professionals to stay proactive when it comes to developing a strong understanding of every business area and this includes department specific goals as well. For example, operations department shall have efficiency and productivity goals, whereas the sales team might have revenue goals to achieve. HR ought to break the glass ceiling to develop trust with various departments/teams within the organization and help them calibrate their goals. 

An HRMS software can be a boon here by offering you with intuitive HR analytics and reports. It doesn’t end here, as HR should collaborate with managers and leaders from various departments to work upon strategies that align with business goals and bottom line. 

As with every technique, it is imperative to stay tough and put. The way you execute these tricks should be determined basis of your company’s goals and business strategy. In case, anything fails to align with the goals or turns futile, there’s always the option to amend or discard it. 

Author bio: Anwar Shaikh Anwar writes about cloud computing, chatbots, AI, startups, human resources and emerging technologies. A self-made writer, Anwar writes for Pocket HRMS, a leading provider of cloud based payroll software to small and mid-sized businesses across India with built-in HR chatbot (smHRty) to revolutionize HR and employee experience.

I hope you enjoyed this article about methods that human resources can utilize to improve a company's bottom line.

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