The impact of wrong human resources management on your performance

by | 6 Dec. 2023

 6 min read

In every industry, there are numerous competitors. To stay competitive, companies must constantly evolve and find new methods to increase their performance. Between these methods, we can find resources management (human and material), who is essential. Indeed, if it isn’t optimal, the consequences on company’s performance will be catastrophic.

Discover how a wrong resources management can impact the performance of your company.

Human resources management: impact on your company’s performance 

In the last past years, Human Resources Management has evolved. Before, it was more linked to qualification and professional skills. Nowadays, the HR department role is more central because he evaluates company’s performances through the human prism.

What are the consequences of a wrong human resources management? 

But, how can a wrong resources management negatively affect the performance of a company?

You need to understand that dysfunction happens when company don’t success to manage their resources in an optimal way:

  • Employees can’t integrate in the company, they are less engaged and are regularly absent from their positions.
  • Through doing this dysfunction, company’s reputation can be impacted. Nowadays, we know how it’s important to have an attractive and competitive reputation.

Loss of commitment, absenteeism, bad reputation, … All of this has an important cost for every company.

KPI’s to follow for your resources management 

You have now, a better understanding of what negative impact can have a wrong human resources management on your company. You should now analyse what happens in your company’s department. Fort that, you have to follow this KPIs:

  • Absenteeism,
  • Turnover of your teams.

Human Resources Management: how to handle the absenteeism? 

Many studies have shown that absenteeism is higher in companies who have a lot of dysfunctions. That’s a “normal” effect: the less comfortable employees feel in their company, the more likely they aren’t come to work. It can be the result of inappropriate management method, submerged in work, a bad atmosphere within the work team. Absenteeism is considered as an essential KPI to follow when your objective is to increase efficiency.

Indeed, you must point that every absence cost a lot of money to every company. It can also increase the risk of failure of your projects or your production.

Human Resources Management: how to decrease the turnover of your teams?

The turnover (rhythm of renewal of employees in companies) is another KPI to follow who can cost to the company. So, if one of your employees is leaving your company, it will have an impact on your cost. It’s the same case for a new employee with his formation.

Some studies showed that the cost of recruitment of an executive can be the cost of one year salary! If the turnover is high in your company, she can’t respect the budget. In the worst case, she can lose money.

When the turnover is important in one of your departments, you need to identify why and limit the impact on your company’s efficiency: insufficient integration of new employees, inadequate managerial practices, insufficient training, the impossibility of evolving in his position and mission, … Acting on these reasons will let you increase the commitment of your employees, by the same way, decrease the turnover. This can only have a positive impact on your company’s efficiency.

How increase my company’s efficiency by optimising resource management?

As a CEO, you know that to face your competitors, you must constantly increase your efficiency. To reach this objective, you must follow the various KPIs and make the right decision at the right moment.

How to do it? Like every company, from every size, you must use a project management software. Indeed, you will be able to follow your project, manage your resources and create your own reporting.

So, if you’re looking for a powerful software for your company, feel free to contact Visual Planning’s team for a demo. You can also test our software with a free trial of 21 days.

Take advantage of Visual Planning’s software and optimise your resource management to increase your efficiency.

If you have some questions on resource management or if you want to try our project management scheduling software, feel free to contact Visual Planning teams!

Visual Planning is available on premise or in the cloud. Find out more about all Visual Planning features here, or read our case studies to understand how we are helping many companies to leverage their inner strengths.

Passionate about cooking and sports, Alican relies on his studies in Digital Marketing as well as his appetite for the digital world to create content and media to facilitate your research !


Junior Marketing & Communication Officer


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