Boss Lady

Human resources management is strategically vital to business success


The overall health of an organization can be guaranteed when there is a constructive partnership between a CEO and the human resources management and staff. As a CEO, I am able to better identify the talents, expertise, and experience needed from my company to achieve strategic goals and ensure my business has the correct personnel to reach these objectives.

A company is made up of people: they are the ones who make it work and even achieve success . Therefore, it is necessary that these professionals feel comfortable with a great organizational climate , maintain a good performance and do not lose motivation . And that’s where Human Resource Management or HR comes in .

In a survey conducted by the Harvard Business Review, 53 companies with good human resources management practices had their indexes on the stock exchanges monitored and their performance was 51% higher than the market average, which is really expressive data.

Another survey, carried out by Sodexo, shows that companies that have good people management practices are able to create a quality work environment . This quality of life makes professionals up to 86% more productive and the business up to 70% more profitable .

What is human resources management?

But what exactly is human resource management? How important is it? How can I do good management?  As the name suggests, HR is responsible for managing people , to be more specific, the professionals within the company.

In more general terms, HR is the area that is responsible for the relationship between employees and between the employee and the company itself. He is responsible for the proper management of these people, in addition to their firing and hiring.

It is very important to point out that in the market it is increasingly common to outsource the hiring of professionals. In this way, it would be up to HR to regulate and lead new talent within the organization.

In addition, human resources management has the role of creating coexistence policies between employees and their superiors, in addition to transforming the work environment into a pleasant place for everyone. To learn how to turn your team into a high-performing team, click here.

Importance of human resources management

Having human resources management that actually works within an enterprise can greatly increase the productivity of your business. The human resources management creates initiatives and actions to demonstrate the appreciation and the value that each professional has to the organization. The good management allows to know positives and negatives , allows to know the actual skills and vocations of employees and manage them in the best possible way. This way, you can be sure that the person is showing their potential and giving their best to achieve the corporate objectives and strategic goals of the company.

Demotivation of company members is extremely common , which can lead to very negative consequences, such as decreased productivity and a bad organizational climate. To avoid this, human resources management is responsible for creating measures to avoid demotivation of members.

A good selection of employees along with efficient human resources management is the basic recipe for how to transform the work environment . Instead of a heavy and competitive climate, we began to observe a pleasant and collaborative environment , with satisfied professionals engaged with the organization’s values ​​and objectives, also strengthening the organizational culture.

Consequently, with all this, it is possible to observe that having a well-structured human resources management can greatly increase the productivity of a company and is much superior to those whose managers are inattentive to the area.

How strategic human resources management builds success

These are the main variables on how HR contributes to the goals of your company.

Strategic planning

A critical role is for HR to understand the company’s goal and what talent is needed to reach these goals effectively and quickly.

Attract the best in the business

As a CEO, the goal is to get the best of the best working for you. A successful HR department can identify and hire leading performers in your industry, not just fill a job opening. Your HR department will best benefit your company by continuously marketing your company in a way that draws the best talent in the industry.

Employee engagement

HR should focus not only on hiring, using the best onboarding software and handling new staff, but also on involving existing workers. It would keep workers empowered and involved by encouraging HR to evaluate employee morale, take action on employee complaints, and promoting the entire command chain.


It costs a business, on average, one-and-a-half to three times the annual salary of an employee to hire and train a replacement.Turnover is not only costly, but also interferes with team momentum, poor morale, and decreased growth. CEOs need HR assistance to plan for workforce changes, including modeling scenarios for organizational structure changes, identifying the worst performers, and creating career advancement and retention plans for high achievers.

Compensation and benefits

Don’t discourage your strong-performing employees with low pay. To achieve business sustainability, devise a plan for how you can better compensate your high achievers and also determine if you are paying some of your staff too much. It is important to pay workers at a cost that is equal to their contribution to the organization.

In comparison to compensation, the second most expensive part of having a workforce is benefits. For the near and distant future, CEOs need to be able to forecast all company sales and expenses. HR should be able to add support by including next year’s estimated profit costs, an overview of what is driving the costs, and what potential strategies can be used to control or reduce these costs.


Ensure your HR department is constantly evolving and producing high-end results for your company. A strategic HR team and even a capable HR software system can oversee the structure of the organization, employee relations, and compensation and benefits efficiently. A CEO who does not recognize the benefits the HR department holds, runs the risk of not possessing the wealth of knowledge and experience available to successfully create and grow your organization.

About Andrew Miller'

Andrew Miller is former CEO of Polycom, Inc. He was appointed Polycom’s President and Chief Executive Officer in May 2010 and became a Member of the Board of Directors shortly thereafter. He joined the Company in July 2009 as Executive Vice President of Global Field Operations.

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