Beyond Staying Alive
Every company realizes the importance of being at an advantage vis-à-vis its competitors as it sustains itself and expands within a given market. Being at a competitive advantage means that an organization has positioned itself in front of others in quality, low cost, worth, and innovation, and with that ensuring success, business growth, and financial stability.
Is it All About The Money?
Being ahead in the market entails being aware of every competitor in the industry and being able to foresee their behavior. However, simply matching prices or copying product packages does not suffice. A solid strategy would ensure sustainability and growth, even in the face of pressure or change in the market.
The general assumption is that competitive advantage is either comparative, that is to say, based on product price; or differential, which emphasizes quality.
An often kept secret is this: There is a third element that is so far insufficiently noticed and is a most essential contributor to competitive advantage. That is: a corporation’s performance in supporting and managing its human capital. An organization with a manager who is aware of the power of engaged employees and an HR department that intelligently acquires, retains, and develops talents, surely has competitive advantage.
HR Has Your Back
Simply put, a satisfied employee, aligned to clear guidelines and motivated by a transparent reward system, is motivated to provide better customer service, leading to a subsequent boost in sales and generating elevated revenue. Companies who see this are way ahead of the game.
Employees are the ones who produce goods, deliver services, and interact with clients on a daily basis. Through their innovation, problem solving, and productivity, they represent a company’s quality and worth. HR professionals ask how these can be authentically raised through enhanced motivation and interest.
Human Resource managers can help build a solid competitive advantage through their personnel management policies. Transparency, fairness, responsiveness, and dialogue are features that add to this loyalty and incentive to be aligned with the company’s goals. The result is long-term benefits of loyalty, belonging, common goals, ownership, stake, interest, motivation.
Moreover, a functional HR department that efficiently caters to the needs of its human capital makes a company appealing, therefore attracting the most skillful and experienced candidates. The result is an amazing cycle that starts with HR: Better HR leads to a competitive edge that gets better employees that, in turn, boost a company’s competitive edge.