Does proper people management really help build a leaner business, eliminate costs, and increase market competitiveness?
With this in mind, we've created an article for you! Today, you'll learn the benefits of strategic people management for reducing costs in your organization, clearly and objectively. Keep reading to learn more!
Errors throughout the workday significantly impact a firm's profits, making operational costs skyrocket. Imagine the lost sales due to canceled invoices, poorly served customers, and the number of reworked jobs.
Strategic people management is useful for keeping professionals trained, attentive, and aligned with their workload. Therefore, the problems mentioned above can be drastically reduced or even eliminated in the iron and steel shop.
The process of laying off employees is costly. Often, it costs more than a full year's salary. This high cost unbalances the financial health of the business, potentially leading to failure in the medium to long term.
Proper people management contributes to creating a more conducive work environment, effectively retaining talent, and reducing turnover. Furthermore, it strengthens the store's employer brand, making it attractive to talented professionals.
In a recent survey published by Exame magazine, it was found that only 39% of the working hours are productive — a huge cost for the organization, since large-scale production is useful for reducing fixed costs in the iron and steel store.
By effectively managing human capital, however, it is possible to boost productivity. In a study from Sodexo, it was found that organizations that invest in quality of life of its employees are 86% more productive, on average.
Finally, it is important to emphasize the importance of an adequate recruitment and selection process. When hiring incorrectly, the number of internal conflicts grow, as well as the number of accidents, errors and problems throughout the day.
Currently, there are a number of techniques applied to people management that are useful for successful selection. One of the most important is the Cultural Fit process, which involves hiring people based on the values established by the institution itself.
As you can see, several costs can be reduced in an iron and steel shop through strategic people management. Therefore, investing in human capital is also a way to enhance the company's results, growth, and longevity.
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