How can I convince my CEO that Human Resources is important and adds value to the company?

Convince to CEO  about the HR  To begin with, unlike any other constituent of an organization, Human Resources is extensive, inter-departmental, and involved throughout the company; the nature of HR is to interact with and understand the processes of the business as a whole. Furthermore, the implementation of a business strategy intrinsically demands cooperation with the human work force with management.

Human Resources, of course. Lastly, the specific arsenal of skills necessary to strategy implementation is native to those people working in HR: similar tools for similar tasks, in a manner of speaking. The notion of “strategic HR” is common enough ,, certainly a plethora of books, articles, Internet publications, and the like exists to HR professionals towards strategist their business management. A great deal of progress has been made along this trend, but the fact of the matter is that much of this strategy development remains strictly conceptual; very little ground is being gained in terms of actual organizational change. Strategy, in order to be effective, must naturally be implemented. If a business is to change, people must drive the wheels of that change, and that is where HR’s true role comes into play.

Hr professional never give the loss in any stage of  running business.

Hi,

 

First of all let me tell you that you should adopt different ways in different industries. From a general perspective,for HR to be a strategic partner, the first and foremost thing that is needed is the support from the top management.

Asgoing and telling stories and theories to a CEO is not practical, you better be prepared with DATA !!Take the data of recruitment,attrition,tenure,compensation,etc and also an engagement survey.

Present the data before him and convince him,with a successful HR department on place you will be able to do the same things in a much effective,efficient and with a long term business perspective.Thanks.

Gokul R V

Human Capital Value

Having an in-house human resources function is important. An in-house human resources staff or a human resources expert on staff can increase the understanding of how important human capital is to the company's bottom line. For small businesses, in particular, human capital is critical because so many smaller firms have employees who perform cross-functional duties. With a smaller workforce, if just one person leaves, it leaves the company with a huge gap to fill and a potential threat to the company's profitability.

Budget Control

Human resources curbs excessive spending through developing methods for trimming workforce management costs, which includes negotiating better rates for benefits such as health care coverage. In addition, human resources ensures competitive and realistic wage-setting based on studying the labor market, employment trends and salary analysis based on job functions. As some small businesses have budget constraints, this human resources function is especially helpful.

Conflict Resolution

Workplace conflict is inevitable, given the diversity of personalities, work styles, backgrounds and levels of experience among employees. A human resources manager or a staff person specially trained to handle employee relations matters can identify and resolve conflict between two employees or a manager and employee and restore positive working relationships.

Training and Development

Human resources conducts needs assessments for the organization's current workforce to determine the type of skills training and employee development necessary for improving skills and qualifications. Companies in the beginning or growth phases can benefit from identifying training needs for existing staff. It's much less expensive than the cost to hire additional staff or more qualified candidates. In addition, it's a strategy that also can reduce turnover and improve employee retention.

Employee Satisfaction

Human resources specialists usually are charged with the responsibility of determining the level of employee satisfaction -- often an ambiguous measurement at best. With carefully designed employee surveys, focus groups and an exit interview strategy, human resources determines what underlies employee dissatisfaction and addresses those issues to motivate employees.

Cost Savings

The cost to hire new or replacement workers, including training and ramp-up time, can be exorbitant for employers, especially small businesses. With a well-constructed recruitment and selection process, the human resources function can minimize expenses regarding advertising job postings, training new employees and enrolling new employees in benefits plans.

Performance Improvement

Human resources develops performance management systems. Without a human resources staff person to construct a plan that measures performance, employees can wind in jobs that aren't suitable for their skills and expertise. Additionally, employees whose performance falls below the employer's expectations can continue on the payroll, thereby creating wasted money on low-performing employees.

Sustaining Business

Through succession planning that human resources develops, the company identifies employees with the promise and requisite capabilities to eventually transition into leadership roles with the company. This is an important function as it can guarantee the organization's stability and future success.

Corporate Image

Businesses want to be known as the "employer of choice." Employers of choice are the companies that receive recognition for the way they treat employees; they are the companies for whom people want to work. Becoming an employer of choice means human resources balances recruiting the most qualified applicants, selecting the most suitable candidates and retaining the most talented employees.

Steadfast Principles

Human resources ensures the workforce embraces the company's philosophy and business principles. From the perspective of a small business, creating a cohesive work environment is imperative. The first opportunity human resources has to accomplish this is through wise hiring decisions that identify desirable professional traits, as well as orientation and on-boarding programs.

You need to first get an analysis of all business champions within and related to your industry. All good firms recognise the importance of human capital and the impact that a positive, motivated workforce can have on the profitability and success of an organization.

You need to highlight the importance of high employee morale and low turnover in a competitive world today, where individuals desire to achieve a better life for themselves results in them trying to get a better opportunity at all times. When an organization does not constantly work towards improvement of work conditions and employee success, what happens is that the best talent tends to leave the organization. A high employee turnover effectively reduces employee morale.

When individuals know that there is an HR department that is not only carrying out administrative tasks, but has strategies and policies in place that work towards recognising the best talent, succession planning, growth of individuals within a firm, improvement in employee skill set and rewards that are directly related to performance, the individuals who are confident and motivated, strive to work harder, while lazy, non performers get filtered out themselves.

wow', too long answers :)

I believe it is simple. Translate your work to numbers. 

And numbers here means money. Make sure that he will understand that each activity=profit. Every time you do nothing =loss. 

I believe this is the easiest way to convince an owner or CEO with HR.

If your CEO is qualified for his position, he allready knows how important is HR. If he isn't, your job would be really hard!

We must try to explain him the benefits of HR and its functions. However if the CEO is educated he must know the benefits of HR in this era.

     

Human Resource now be from assets of co. without professional staff co. now success

 

am just wondering how come this question is made!

do you think we need to convince the CEO or Top management how much HR is important, the issue is not how HR is important the question is how you will convince your CEO that you and your team are important to the company and you really added  value by what you accomplished to firm, no any of the top management will ask or looking at the important of HR since HRD is become one of the essential departments of any organization.  

what we really facing is lack of knowledge of the HR team.