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How financial requirements impact human resource?

When an employee fail to meet expectations of achieve any target set for him or her but more importantly, organization might lose on potential gain or cost savings. So, when any employee performs poorly, or organization has to invest in performance improvement program, the organization’s profit potential goes down. But, there is another angle to it.
Employees are assets for any company. Training employees to make them more productive is an investment companies make. Even giving raise and bonus is another way to retaining and attracting top talents. Recruiting new resource and training those costs companies way more money than retaining existing talents.
So, there is a financial implication for each action.  And that is in mostly expenses and extra out of the budget expenses in cases of employee training and performance improvement programs. But, these expenses are actually investments to get more out from low performing employees and retaining them.


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