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3 Ways HR Makes Employment More Profitable

August 3, 2022 | posted by Abacus Payroll

There are four main functions of a running business: Operations/Production, Finance/Accounting, Marketing, and Human Resources. However, not all businesses appreciate how integral HR can be for the longevity of a company, even if you are currently just a small business.

While it may just seem like a bunch of paperwork and dealing with tricky situations, HR has a specific business purpose. Human Resources is intended to make a business more profitable by protecting the business, decreasing employment costs, and increasing employee productivity. These three benefits assist the employer in both saving and making money with successful HR practices.

1) Protection Against Lawsuits and Fines

A proactive HR department can take preventative measures to reduce substantial costs caused by potential lawsuits and fines. By having a set team to ensure that the business is following federal, state, and municipal legal requirements, appropriate procedures and guardrails will be in place to protect the business. Even if your business is too small for a full-time HR professional, reliable resources such as Abacus Payroll’s HR Help Center are available and come filled with a labor law library that helps you be aware of the many state and federal employment laws.

The United States government and Department of Labor have different agencies assigned with investigating violations and administering fines for HR issues observed in businesses. Your I-9s may be audited, your books can get reviewed, and your business’s workplace locations could get evaluated. Having a dedicated HR department will help prepare you and your business for any of these inspections.

2) Decrease in Employment Costs

When it comes to hiring and recruiting, the process can be lengthy and expensive. Investing in HR can help streamline recruitment and reduce costs by improving the overall system. From looking for potential candidates to leading new hires through the onboarding process, a good Human Resources team will evaluate the current recruitment process and assist your business in restructuring and reorganizing steps to ultimately save time and money.

If you are supplementing your company’s internal team with an outsourced HR solution, there are existing templates and features that can make advertising jobs, managing candidates and interviews, and standardizing onboarding much easier of a process. Employee turnover is extremely costly to employers. Studies show that effective onboarding is crucial to giving new employees the best chance at a longer length of employment with an organization.

3) Increase in Employee Productivity

Human Resources also focuses on creating a collaborative and innovative work environment that can boost employee morale and improve the overall company culture. By creating an inclusive and creative workplace that fosters community and loyalty, employees will likely be more motivated, which directly increases business productivity.

Whether your business is 15 employees or over 100, having HR can help standardize practices to ensure equality and fairness. For example, maintaining an Employee Handbook keeps your employees on the same page, and lends to improving productivity instead of wasting time with research and questions that are already addressed within the Handbook. By focusing on enhancing the environment and productivity, HR benefits both the employee and the employer.


Incorporating HR into your business will produce benefits for both you and your employees. These benefits include increased morale, inclusive culture, decreased expenses, and added legal protection. To learn more about how HR can make your business more profitable, contact an Abacus Payroll advisor today!


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About the Author: Abacus Payroll

Abacus Payroll, Inc. is a leading provider of payroll solutions for businesses of all sizes. Whether yours is a family-owned small business or a national corporation, we provide payroll, tax and other financial services on time and at an affordable price. Unlike other payroll providers, Abacus Payroll will assign your very own payroll specialist who will understand your payroll needs inside and out. So no more speaking to a different person each time, no more sitting on hold for hours and most importantly no more missed deadlines! Contact us today to see how we can help your business. You can count on us.