Regularly I am asked the same question, ‘Why should I use human resources for my company?’ It is a simple and yet astonishing question. It has been asked by many managers in various companies. In this day and age of the most serious recession since ‘30s one cannot but take human resource management seriously. It is essential for the survival of any company to genuinely engage in personnel management. People are the most essential asset any company has, without people there could not be a vibrant company. People are at the core of every business and as such human resource management is essential for managing business performance. If your human resource management department does not add value to your business and only engages in paper pushing start questioning what they are about! Personnel Management should add value and drive your business forward!
There are a number of activities in which HRM can add value to your business. Here are some HR activities you should engage in: –
In these days of labour oversupply it is essential to recruit the right people for your company. You need people who give your company a competitive edge and add value to their activities. It takes skilled interviewers to assess these candidates and it takes professionals to know where to search for these people.
- Training Development
In the fast changing economic, technological and business environment you need to train your staff to keep ahead of the competition and to keep up with recent developments. An experienced person who can assess your training needs and who can set up training plans tailor made for your organisation’s needs is indispensable for any successful organisation. Training and development is essential in developing your staff to be able to more with less.
- Labour Productivity
You need to measure annually the labour productivity of your labour force. Compare your labour cost with market rates and organise flexible reward strategies, which suit the financial restrictions of your company.
- Performance Management
Every top performing team has a strategy on how to keep improving the performance of every team and staff member in its organisation. Performance management is not about appraisal forms but about engaging members in how to increase their output and improve company revenue.
- Equal Opportunities
Modern organisations source their talent through diversity and have a mixture of nationalities and backgrounds. Working together these people come up with more creative answers to contemporary business dilemmas. Organising diversity and equal opportunities are not just fancy ideas they give business a deeper understanding of the global business environment and an extended pool of talent and resources.
- Disciplinary Matters
Effective management of a workforce also includes weeding out the underperformers. Too many organisations are ineffective at this and create costly and complicated management structures to avoid the mistakes of a few. However, some organisations are too strict in discipline and scare the hell out of a good workforce. A balanced and effective approach is essential which you should achieve with the professional support of HR.
- Social Legitimacy
These are the simple but important little things such as compliance with all legislation: employment, social, H&S, finance and corporate governance. It is about the importance of your company’s reputation with the people in the region where you operate and in the business world. It about the trust you instil in your workers and the fairness by which you treat them. These are little things but if they are done well they will yield your company large benefits in the long term.
I hope it has become clear why it is indispensable to engage in personnel or human resource management and that good HR management will force your company forward. If you are not sure if your HR department is doing this for you, ask yourself why this is? Because HR should energise and vitalise your people and business!