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8th January 2025

How can CHROs and L&D Leaders Influence Business Growth?

Positioned at the intersection of organizational strategy and workforce management, HR leaders have the unique ability to influence every aspect of a company’s success. But does their wide-reaching impact include profitability and growth?

Here are five key ways HR play a pivotal role in driving business growth:

1. Supercharging performance with company culture

By fostering a culture of learning and engagement, HR can create an environment where employees are motivated and enabled to contribute their best. This involves setting clear performance goals, recognizing achievements, and providing platforms for employee participation. When employees are engaged, the result is increased productivity and profitability.

Moreover, HR can work closely with leadership to define and embed core values that align with business objectives. When employees feel connected to these values, they are more likely to be engaged with the business objectives that drive the company forward.

2. Championing training programs that change lives and organizations

Learning and Development (L&D) is one of the most impactful tools in HR’s arsenal. By investing in employee skills and growth, HR not only enhances individual performance but also prepares the organization to stay ahead of industry trends and be ready for growth opportunities. At an operational level, equipping teams with practical skills – such as language and communication – can improve efficiency and reduce costs, directly boosting profitability.

Additionally, L&D programs demonstrate the company’s commitment to its workforce, which can enhance retention rates and reduce the costs associated with high employee turnover.

3. Aligning talent strategy with high-level business goals

HR’s role in workforce planning is crucial for long-term growth. By understanding the organization’s strategic objectives, HR can ensure the right talent is in place to achieve them. This involves more than just filling vacancies; it requires a proactive approach to building a pipeline of skilled candidates, using data-driven insights to forecast future workforce needs, and identifying skill gaps. In this way, HR ensures that the organization is always prepared to seize growth opportunities.

4. Prioritizing employee experience as a business necessity

Happy employees are productive employees. HR has a direct hand in shaping the employee experience, from onboarding to offboarding. Workplace satisfaction – which is often powered by HR-led initiatives such as wellness programs, DEIB (Diversity, Equity, Inclusion, and Belonging), and career development – can nurture employees that care about the success of their team and company.

A positive employee experience even impacts a company’s bottom line. Studies show that companies with highly engaged employees experience 21% greater profitability. Plus, a positive employee experience can reduce turnover, saving recruitment and training costs.

5. Leveraging company-wide data to empower decision-making

From tracking employee performance and engagement metrics to forecasting turnover and identifying talent trends, HR leaders have the workforce oversight to offer actionable insights that inform strategic planning.

For example, HR can help identify potential leadership candidates within the organization, reducing the need for costly external recruitment. Similarly, real-time data on employee engagement and development through training programs can highlight areas for improvement and ensure effectiveness and ROI.

The bigger picture: HR as a profit center

While HR is often considered a ‘cost center’, its ability to influence business growth can transform it into a profit-driving function. Indeed, the influence of CHROs and L&D leaders on business growth goes far beyond administrative tasks; they serve as strategic partners in achieving operational efficiency and building a healthy, enduring culture. These long-term strategies, in alignment with high-level business goals, contribute directly to the business’ bottom line, placing HR at the forefront of future-planning in their organization.