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.