In the Middle East region, and especially in Lebanon, Human Resources department hasn’t been valued as a necessity to organizations and was still being considered, if we were to be optimistic, a luxury. You would see many organizations without an HR person, the CEO or some other decision maker would handle this role.
In the last few years, Companies started to have some shift in trend, and we began noticing an increased presence of HR in different companies .. Maybe not to the extent of the presence of full HR departments, or full adaptation of HR software solutions, but at least in the presence of a dedicated Human Resources person/manager/generalist.
The reason for the past approach is that companies always regarded HR as a burden to companies, a source of cost and no profit. Meanwhile there are several facts that are becoming more obvious to companies, especially Lebanese ones, which contradict this claim. Some of these include:
- Profit from HR typically comes through eliminating potential losses. A company for instance can lose money through hiring then firing ineffective employees. Such a loss will come in the shape of losing investment in employees, but also in losing project money through such employees.
- HR is particularly responsible for the satisfaction of your employees, including your top performers. Keeping such employees is essential to the company and is an important “profit”.
- Effective Human Resources can boost your company’s profit. According to article shared under this link, a two-year study conducted by the Work Foundation and the Institute for Employment StudiesÂ concluded that if an organisation increased its investment in HR by just 10%, it would boost gross profits by ÂŁ1,500 per employee per year. In fact, several studies reach same results such as this link as well.
- The use of HR software contributes to eliminating costs, such as for the least cutting down on printing needs and excessive time spent to reach and gather information, and the likes..