Effective HR Practices in Small Companies Affect the Bottom Line

These are the findings of a recent study by Cornell University which found that small businesses who invest in formal employee selection, management and retention strategies see direct, quantifiable results on your bottom line:

  • 22.1% higher revenue
  • 23.3% higher profit
  • 66.8% lower turnover

“Workforce alignment” strategies are:

  • Hiring based on organizational fit.
  • Management practices focused on employee involvement.
  • Retention strategies based on a family-like environment.

The average size of the 320 companies who participated: 53 employees.