Generally, HR Department is a Cost Centre. How can we make it a Profit Centre ? Can anyone suggest some methods for the same ! Regards, Sheela Sirish
From India, Hyderabad
From India, Hyderabad
Hello Sheela:
>Generally, HR Department is a Cost Centre.<
HR Departments generally save more money than they cost which makes them a profit center.
>How can we make it a Profit Centre?<
Do a detailed analysis of all the costs and all the benefits of the HR Department. Costs are the easiest to calculate whereas the benefits are difficult.
>Can anyone suggest some methods for the same!<
Is this for school or work?
From United States, Chelsea
45>Generally, HR Department is a Cost Centre.<
HR Departments generally save more money than they cost which makes them a profit center.
>How can we make it a Profit Centre?<
Do a detailed analysis of all the costs and all the benefits of the HR Department. Costs are the easiest to calculate whereas the benefits are difficult.
>Can anyone suggest some methods for the same!<
Is this for school or work?
From United States, Chelsea
Hi,
In general HR dept cannot bring in profit or revenue generation like other Mktg or Software dept.But it can surely save Cost and reduce the cost and bring in the Profit.
e.g reducing the Cost involved in hiring, reducing the turnover of the company...,aligning the policies and plans of the HR with the business....etc.
From India, Varkkallai
In general HR dept cannot bring in profit or revenue generation like other Mktg or Software dept.But it can surely save Cost and reduce the cost and bring in the Profit.
e.g reducing the Cost involved in hiring, reducing the turnover of the company...,aligning the policies and plans of the HR with the business....etc.
From India, Varkkallai
Hi,
i do agree that HR dept is a cost center but we some or other way help the company to save its funds which indirectly can be treated as a profit.
getting good resource for less pay, taking care of them, retaining them, motivating them all these leads in saving companies money.
Regards,
Kiran Kumar
From India, Hyderabad
i do agree that HR dept is a cost center but we some or other way help the company to save its funds which indirectly can be treated as a profit.
getting good resource for less pay, taking care of them, retaining them, motivating them all these leads in saving companies money.
Regards,
Kiran Kumar
From India, Hyderabad
Hello,
Thanq,I am looking at responses which will help me to make a presentation to my Senior Management that HR can be a Profit Centre !
I am sure there are ways to do this !
Thanx and regards,
Sheela Sirish
From India, Hyderabad
Thanq,I am looking at responses which will help me to make a presentation to my Senior Management that HR can be a Profit Centre !
I am sure there are ways to do this !
Thanx and regards,
Sheela Sirish
From India, Hyderabad
HR is always consider as the cost centre if we keep emphasing on the traditional HR role. HR is undergoing an evolution whereby still maintaining the function of traditional HR Function the HR now are more of a strategic partner and change agent.
Being a Strategic HR partner we have to gear the whole human resource in the company to meet the company objectives, missions and visions. A modern HR should process criteria of a business acumen to champion HR planning, change in HR policies and also cost reduction by using outsourcing etc. HR should also be a advocate for both the employees and employers.
Guess that you can work out some strategies for your company so that you will now in a more proactive position rather than the usual reactive position.
From Singapore, Singapore
Being a Strategic HR partner we have to gear the whole human resource in the company to meet the company objectives, missions and visions. A modern HR should process criteria of a business acumen to champion HR planning, change in HR policies and also cost reduction by using outsourcing etc. HR should also be a advocate for both the employees and employers.
Guess that you can work out some strategies for your company so that you will now in a more proactive position rather than the usual reactive position.
From Singapore, Singapore
The perception that HR is a cost centre is misplaced. Every department, be it production, marketing, finance etc.. incurs cost while performing their functions. Likewise HR also incurs cost while performing HR functions.
The HR functions, if not performed in an organization, How the organization is going to be impacted ? The impact ought to be negative from the bottom line perspective of the organization. The consequent fall in profit (or increase in loss) is the quantitative contribution by HR in the Business.
Jacob
From China, Beijing
The HR functions, if not performed in an organization, How the organization is going to be impacted ? The impact ought to be negative from the bottom line perspective of the organization. The consequent fall in profit (or increase in loss) is the quantitative contribution by HR in the Business.
Jacob
From China, Beijing
If one reads any Talent management books written by Americans, it is cleearly evident that profit is generated by talented individuals the locating of which is the primary purpose of HR;so much so that it is said that talent management is not the prerogative of HR deparment alone.
Talent management has to be praticed correctly at all levels in the organization. Unforutnaely, the talent available in other teams is not clearly visible as in a trnasparent medium like cricket where talent all of teams can be clearly seem. The more correct initiatvie that HR takes in Telant management, it will not only be a profit Centre but as a Strategic resource, another bane associated with HR.
From India, New Delhi
Talent management has to be praticed correctly at all levels in the organization. Unforutnaely, the talent available in other teams is not clearly visible as in a trnasparent medium like cricket where talent all of teams can be clearly seem. The more correct initiatvie that HR takes in Telant management, it will not only be a profit Centre but as a Strategic resource, another bane associated with HR.
From India, New Delhi
Hi,
Plz refer to the link....Hope that your query solved........
Is HR cost effective
Regards
Shweta
From India, Coimbatore
Plz refer to the link....Hope that your query solved........
Is HR cost effective
Regards
Shweta
From India, Coimbatore
Hi All,
HR being cost effective is different from it being a profit centre. HR being cost effective has been on the cards for a long time now. Does any know how HR can be a profit centre, i.e., revenue generating? I have heard that there have been companies who have successfully implemented profit generating programs. Does anyone have any ideas on this?
Regards
Christina
From India, Thiruvananthapuram
HR being cost effective is different from it being a profit centre. HR being cost effective has been on the cards for a long time now. Does any know how HR can be a profit centre, i.e., revenue generating? I have heard that there have been companies who have successfully implemented profit generating programs. Does anyone have any ideas on this?
Regards
Christina
From India, Thiruvananthapuram
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