At first glance, it may be difficult to see how human resources can function as a value driver for your business. Most of the time when we think “value” we think about reducing costs and increasing profits. Human resources, though, has a role to play, and it is not a minor one. How employees are recruited, trained, and disciplined are all under the purview of the human resources department. Additionally, HR usually handles decisions about various costs, such as insurance, and those decisions most certainly impact a company’s value.
In many ways, it is the employees who create the value of any company. Whether you offer a product or a service, it 
is your employees who make sure that your customers are happy and satisfied. Strong systems can help, but without equally strong employees, even the best systems will fail to build the value of your business. Since HR selects and trains new employees, it is critical to the value of the company overall.
is your employees who make sure that your customers are happy and satisfied. Strong systems can help, but without equally strong employees, even the best systems will fail to build the value of your business. Since HR selects and trains new employees, it is critical to the value of the company overall.
Just as all departments within a successful business follow set policies and procedures, HR should have a clear delineation of responsibilities. How should HR work with other departments to make sure that key positions are filled? What are the policies regarding hiring, disciplinary action, or company benefits? When and how are employee reviews conducted?
Business valuation experts consider the length of service of key employees, the companies’ approaches to filling important positions, and overall employee morale, along with many other factors when they determine the worth of a business. The human resources department shepherds the company’s most important asset: people.
