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Why Invest in HR?


“…investing in Human Resources (HR) is a task that must be a top priority because it gives organizations the control and peace of mind required to succeed in a rapidly changing economy. After all, employees have always been the greatest asset any company has … (and) … managing their experience and care pays dividends that can’t be ignored, especially in a time of economic uncertainty.” (E. Wilson, “Why Now is the Perfect Time to Invest in Human Resources”, 2020, Forbes.com)

Human resources is a significant investment for most start-up companies. For a company to succeed it is not only critical for it to have the optimized number of employees with the right mix of skills, abilities, and motivation, it’s also important that the company invest in systems to support and manage its employees. Employees are, after all, the most valuable resources a company has.

“…every business is a people business… The larger an organization gets, the more it needs the ability to unify … in order to implement a strategy that will stand the test of time.” (E. Wilson, “Why Now is the Perfect Time to Invest in Human Resources”, 2020, Forbes.com)

Investing in human resources might not show an immediate financial return, but it is a strategic addition that will eventually lead to the financial success of the company, particularly in periods of economic or situational uncertainty. We have outlined below some of the ways a company can invest in Human Resources, and the associated benefits of doing so:


  • Investing Time: talking to employees on a one-on-one basis helps the company understand how it can best directly support its workforce, which in turn can increase employee loyalty and help the company bridge difficult operational periods.

  • Investing in Training: training employees empowers them through confidence and skills that will not only improve their personal performance but will also directly contribute to the company’s success. Training employees also adds depth to the company’s knowledge base, which in turn helps with succession planning and redeployment if the company faces business disruptions.

  • Investing in Fair Compensation: fair compensation is the most straight-forward way for a company to demonstrate its appreciation for its employees, which also builds employee loyalty.

  • Investing in Benefits Programs: like fair compensation, investing in employee benefits programs also demonstrates a company’s appreciation – and care - for its employees. This not only improves employee loyalty, it also promotes a healthy workplace which in turn has a long-term positive impact on the profitability of the company.

  • Investing in Leadership & Mentorship: often overlooked by most businesses, investing in leadership and mentorship programs helps a company build a strong collaborative culture which in turn improves employee retention while propelling the company forward. The adage, “employees don’t leave bad jobs, they leave bad managers” applies, and investing in a strong leadership culture helps the company retain its most valuable resources.

  • Investing in Enterprise Resource Planning (ERP) Data Solutions: when integrated with the payroll and labour planning platforms, investing in ERP solutions can provide situational awareness while reducing redundancy in processes, enabling the company to remain “lean” while having the ability to pivot quickly due to changing operational or market conditions. Centralized data also helps provide a snapshot of what resources you have, or need (and where) throughout your organization, which in turn allows for more accuracy in resource planning and payroll budgeting.

When considering employees are the most valuable resource a company has, it follows that investing in Human Resources offers exponential yield for the company. So instead of asking “Why invest in HR?”, the better question to ask would be “Why NOT invest in HR?”.

If you’d like more information on Investing in Human Resources, please read our article “What’s the Opportunity Cost of Not Hiring?” or contact us – we’d be happy to help with your HR and/or recruitment requirements.

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