Is HR a Service or Profit Centre?

HR is often viewed as a service helping the business but not necessarily helping the bottom line

Sometimes HR can have an identity crisis. Is HR a delivery service or part of a company’s bottom line? 

There is no simple answer, and, in fact, you may find you are wearing both hats depending on what is being asked of your department. If it seems like HR tends to get pulled in two very different, nearly opposite directions, it’s because HR has responsibilities to both ends of the corporate ladder.

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Money sack with the letters "HR" on it.

The Hidden Savings HR Provides

How much does employee turnover cost? Though the estimates vary depending on seniority, experience and specialization, the rough estimate is anywhere from a third to a half of an employee’s salary added to whatever the position pays, according to The Work Institute’s 2017 Retention Report.

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