Correlation between the quality of HR and sales and profit growth

Posted by PeopleStrong under Thought Leadership

India as a nation is fairly young- only 60 years old and much younger in terms of free markets. We have operated in an open economy for less than two decades after the onset of liberalization. Business and economy has seen maturity of Business processes and markets only since late 90s.

The HR scene in the country is a reflection of maturity and evolution stage of the economy as well. Historically it has been true that ‘wherever market competition is hot, Talent process maturity is high’. Let’s look at the IT industry where market competition enhanced the talent processes maturity and HR was able to create a short term and long term impact for Business.

Since economic maturity has started to come in the last decade, HR in India in inching towards linking its process with business outcomes, however there is a long road ahead. The current situation might give us a view that HR is not able to create an impact or at least not visibly apparent but the same is not true.

All said and done, HR however will have to focus more on outcome based practices than remaining a subjective function. Power of HR will not come from the number of people in HR department but from the say it has on organizational decision making and its impact on bottom-line

-Pankaj Bansal, Co-founder and CEO