HR’s Influence on Revenue: Navigating the New Employer-Employee Relationship
Successful organizations that consistently exceed revenue goals thrive by aligning with employee expectations .A thriving company nurtures the employee journey, focusing on various aspects of well-being and engagement to support personal and professional growth.This puts HR leaders at the forefront of helping employers and employees form an evolved relationship where their respective professional goals are more compassionately and collaboratively achieved.During a thought leadership spotlight at From Day One’s Austin conference R.W. Holleman, head of enterprise sales at Rain, a company offering earned wage access programs to employers, spoke on how a holistically symbiotic relationship between employee and employer is crucial to achieving higher revenue goals.Cultivating Authentic Value“We all know the cost of turnover. The impact of disengaged employees and the ripple effect that has on the bottom line, right?” Holleman asked the audience. He elaborated on how companies failing to address the root of modern-day disengagement see a cultural decline that further leads to a decline in revenue.Employees are no longer satisfied with just a paycheck and guaranteed work hours. They seek meaningful support, recognition of their value, and a sense of purpose in their work. Consequently, HR executives confront the limits of traditional talent management. The conventional view that employees are satisfied with consistent financial compensation and set work hours alone is outdated.“You’re not just managing people. You’re shaping your HR and you’re shaping the future of the business,” Holleman said. “If you don’t help with that, the business might not survive, right?”What can employers provide of authentic value? Holleman cited security, flexibility, and belonging as vital to maintaining employee engagement, productivity, and satisfaction. Data from McKinsey & Company confirms this. Companies resolving significant drivers of disengagement, including an unsafe environment and a lack of career advancement and workplace flexibility, can annually save up to $56 million.R.W. Holleman, head of enterprise sales at Rain, led the thought leadership spotlightResolving several major drivers of disengagement supports retention, reduces absenteeism, and boosts productivity. Companies then experience an increase in revenue.A Positive and Supportive CultureThe same study by McKinsey & Company showed that employee disengagement exhibited by workers with lower well-being can cost a median-size company between $228-355 million a year in lost productivity. In 5 years, that adds up to about $1.1 billion in lost value.It underscores how HR executives now occupy a unique position. They can be more influential to companies achieving sustainable financial success through leveraging comprehensive benefits and programs that support employee well-being. Going beyond the scope of traditional HR work is to pioneer the cultivation of positive and supportive modern-day workplace environments conducive to success for employers and employees.One way to foster a positive culture is to consider more inclusive benefits that better support employees’ overall well-being. Inclusive benefits empower workers, contribute significant value to their lives inside and outside the workplace, and help them thrive.For example, Rain gives employees instant access to 50% of their earned wages, providing financial flexibility. This benefit eases the stress of immediate financial burden, helping employees focus more on their careers. The program is also a win for employers because of its simple process: companies who access Rain’s program complete an EWA adjustment file and withhold the accessed wages from employees’ checks.“What makes that powerful? What I’m talking about is not technology or automation, right? It’s about meeting the human need for stability and security,” he said. By authentically addressing employees’ concerns and providing relevant solutions, employees feel more valued, optimistic, engaged, and committed to performing at their best.Other benefits like inclusive healthcare coverage, care benefits, wellness programs, skill development, work projects, and continuing education improve employee well-being and strengthen positive connections between employers and employees. “By recognizing the importance of the human element and giving employees the support they need, you’re not only driving engagement, you’re driving revenue,” he said.Editor’s note: From Day One thanks our partner, Rain, for sponsoring this thought leadership spotlight.Stephanie Reed is a freelance news, marketing, and content writer. Much of her work features small business owners throughout diverse industries. She is passionate about promoting small, ethical, and eco-conscious businesses