Here are a few tips on how you can make sure your HR department is functioning at the highest level possible.
The value of HR is shown through the increase of a company’s economic performance and improvement of overall employee satisfaction.
Since the economy shifted, the role of human resource management has evolved dramatically. Prior to the economic decline, HR was fighting for a seat at the corporate table. They weren’t often heard when it came to corporate strategy. Then, companies had to make cut backs and hiring slowed. Now that the economy is starting to pick back up, many companies are hiring again and human resources have moved to the front line. Their contributions as a department are now more valuable than ever. People are a critical part of an organization’s success, and if you’re not managing them correctly, your overall success will suffer.
Recent studies have shown that organizations with high performing HR departments or strong HR practices will have 3.5 times the profits of lower-performing organizations. 3.5 times! That is NOT an insignificant number.
Here are a few tips on how you can make sure your HR department is functioning at the highest level possible.
First, start with your recruiting, hiring and onboarding process. Bill Gates once said, “If we weren’t still hiring great people and pushing ahead at full speed, it would be easy to fall behind and become a mediocre company.” Basically, your company is only as good as the people who are working for you. If you’re cutting corners with the recruiting, hiring and onboarding process, you aren’t doing anyone any favors, and you’re not taking advantage of the value of HR. If it takes you longer to fill a position, so be it. In the end, it’ll be worth the wait.
Second, once you have the employees on your team, take a long hard look at your development and talent management programs. High performing companies take their development programs beyond just planning who the successors to the top management positions will be. Even though the job market is extremely tough right now, don’t assume your employees won’t leave if a better opportunity comes along. In fact, 60% of employees are actively searching for opportunities. That’s more than half of your current staff!
While most employers assume that people leave due to better compensation opportunities, this isn’t always the case. One of the biggest reasons an employee leaves a job is that they don’t feel there’s room for professional growth and development. If you don’t show your employees that you care about their future, someone else will.
This brings me to my third point. Look at your performance and rewards program. Make your expectations completely transparent to your employees. Let them know what will get them rewarded and what won’t. High performing companies reward behavior , not just results. When they go above and beyond, reward them immediately. Nothing is more motivating than feeling appreciated. When you’ve followed through on these steps, you’ve truly unlocked the full value of your HR department.
