By utilizing the expertise of YT Ltd.’s human resource functions, the firm can secure its profitability by making sure its human resources contribute to the company’s stability. The firm’s HR functions can improve its bottom-line performance by maximizing the effectiveness of employees, thereby improving its financial position. Therefore, tapping into the expertise of YT’s HR and investment functions can help maximize profitability. This will happen by optimizing employee effectiveness, but this function is likely to change as the uncertainty in the business environment grows. For example, setting new performance pay structures and incentives will help the organization to manage overheads that are linked to salary and bonuses better. This action will give it control in the management of the company’s overall costs of operations, which will influence its profitability.
Additionally, utilizing its investment expertise to engage in projects that align with its core vision and culture would help to cement its profitability record because by generating additional streams of revenue for the business. For example, developing key performance indicators (KPIs) that align with the firm’s core vision and guide its investment plans would help to steer the firm towards adopting useful recommendations and engaging in actions that maximize its profitability. In this regard, the company’s investment and HR strategy would be centered on aligning its core vision towards maximizing revenues and profitability. This approach can be implemented in different ways, including giving recognition to employees who support this goal and whose works have contributed to the improvement of the company’s profitability. At the same time, management should pay close attention to its HR strategy to make sure that its rewards and recognition practices align with the goal of profit maximization.
Tapping into the expertise of the most appropriate functions relating to the firm’s HR and investment strategy will also help the firm to work with the board of directors towards achieving the fundamental goal of maximizing returns. This function is important in securing the future profitability of the business because employees’ objectives and desires may be at odds with those of the management and board of directors. Without a robust and effective plan for merging these interests, clashes and disagreements between the company’s board and employees may arise, thereby undermining the prospects of improving the company’s profitability.
Tapping into the expertise of the company’s HR and investment functions will also aid in addressing issues that may emerge between stakeholders, thereby keeping the employees happy and working to fulfill the firm’s goals and objectives. It is the responsibility of YT Ltd.’s HR and investment managers to make sure that the company’s activities align with management’s vision of maximizing profitability. For example, its HR function could play a pivotal role in ensuring there is a balanced workforce in all areas of operations to maintain a highly motivated workforce that has limited disruptions. They can also do so while minimizing cost overruns on the company’s payroll.
Alternatively, utilizing the expertise available in the company’s HR and investment functions will also help to secure the company’s future profitability by making sure its key operations align with existing budgets and forecasts. For example, the company’s investment managers can work with the finance department to ensure that the resource allocation requirements for its activities stay within budget limits and contribute to the improvement of the firm’s overall profitability. Doing so would make sure there are no-cost overruns and inaccurate budget forecasts that may negatively influence the firm’s performance. This statement means that tapping into existing expertise not only plays a role in advancing the firm’s profit-making objective but also contributes toward protecting it against occurrences that would undermine the overall financial strategy of the company. In this regard, the expertise employed is not only curative but also preventative in securing the company’s financial goals.
Additionally, tapping into the firm’s expertise in investment functions would help to allocate its assets to supporting activities that maximize returns and profitability. This contribution adds value to the company’s resource allocation functions because the failure to allocate resources in the right manner or to activities that do not necessarily contribute to the firm’s profitability could undermine its overall financial performance. This statement taps into one of the most important functions of the firm’s investment functions, which is to manage the company’s assets in the best possible manner to maximize returns.
This strategy also involves securing the company’s expenses to pay recurrent expenses and claims. Relative to this function, it is common practice among insurance firms to hire third parties to manage the transactional side of their investment plans to give them adequate room to focus on their core business, which is to develop insurance products for their customers. The performance of these third parties should be benchmarked against their ability to maximize the firm’s returns. Their performance should also be measured against their ability to exceed the expectations set forthwith or their zeal to exceed the expected average returns of their business dealings.