Who are the money-makers in your company? Sales? Yes. The staff who provide the services you offer? Yes. HR? Possibly.
Though HR doesn’t posses the power to directly bring in revenue like your sales team, they can perform feats with cost saving ideas that will garner savings and ultimately pad your bottom line.
A Match Made in HR
Informed and astute hiring decisions are key to acquiring the best suited employees. And the best employee for the job usually translates to the most productive employee for the job. Productivity drives revenue.
Good employee relations work as a corner stone for employee retention and overall company function. Hiring employees that mesh with each other and your culture facilitates a harmonious environment. A harmonious environment nurtures cooperation, trust, cohesion - and ultimately productivity.
Additionally, instituting a solid employee relations program can help mitigate issues and tensions when they arise. Addressing disturbances and grievances through established organized policies and procedures serve to get things appropriately and timely back on track before they become major or irreversible predicaments.
These two points work together to decrease turnover.
Turn Down Turnover
High turnover can steadily eat away at company time and money. Expenditures like new employee ID badges, access cards, and supplies, don’t seem significant, but they add up quickly. So does time for exit interviews, on-boarding, password resets, etc.
And then there’s training new employees – more time and money, including lost production until the staff members get up to speed.
Another source of savings is participating in the Work Opportunity Tax Credit (WOTC) program. Not only can the WOTC provide direct savings, but it can also help promote some of the other goals discussed.
Putting the WOTC to Work
The WOTC is a federal tax incentive that grants employers $1,200 to $9,600 for hiring a qualifying employee from any one of 14 target groups.
The exact credit amount is based on the specific group, a percentage of the employee’s wages, and the number of hours worked (at least 120 hours) in the first year of employment.
When businesses participate in the program, the credits earned offset their income tax liability, generating savings that can help subsidize the cost of employee acquisition, compensation, and training.
WOTC Bonus Benefits
Many individuals within the target groups encounter potholes that challenge or impede their road to employment. They want to work, but employer biases, oversights, or other circumstances, create obstacles.
When people from these categories do get hired, they’re often exceptionally grateful and go above and beyond their duties and performance expectations – They get a job they want to keep, you get a productive employee who wants to stick around.
A double boon for employee retention…and lower turnover.
And if your labor pool is looking a little dry, the WOTC target groups offer new talent that you may not have considered in the past.
The Power of Positive HRing
Don’t underestimate the power of HR to contribute to your business’ revenue. Just because they’re not out pounding the proverbial pavement selling product or executing services, doesn’t mean the department is impotent to contributing revenue to your budget. They just do it indirectly through savings. After all, “a penny saved is a penny earned.”
Go All the WOTC
HR departments interested in learning more about how the WOTC can deliver bountiful tax savings should consider contacting a tax specialist. An expert can guide you through the ins and outs, and provide a full-spectrum understanding of the program for maximum tax benefits.