A company is an incomplete machine without proper human resource management.
It may still operate without it, but it’s severely lacking in different key areas that affect production and sales directly.
With proper human resource management, the company works seamlessly.
Each essential role is accounted for, even those roles which seem inconsequential at first.
In this article, we will break down the basics of excellent human resource management and its direct contributions to your company’s success.
Facet 1: Talent Sourcing
Recruitment goes both ways. It doesn’t always start with conducting employee interviews, it can also start with talent planning and sourcing.
In talent planning, HR professionals actively seek out potential employees to be part of the organization.
In their eyes, these people are great candidates given their credentials, experience, and work ethic.
Aside from that, talent sourcing also pertains to filtering piles of submitted application letters and resumes.
Excellent talent sourcing professionals can make smart decisions upon careful evaluation of these submitted documents.
They make sure that the people they choose are worth investing in.
Benefits
The top benefit of this HR management process is that you get to create and work with an excellent team.
Working with like-minded and driven people creates a conducive work environment without anyone slacking off because they don’t like their job.
Another benefit is that it helps the company save resources, in terms of money, time, and effort.
Onboarding new employees require several hours of training, which demands time from senior employees.
New employees also mean an addition to the payroll. In essence, recruitment is costly.
Settling for easily available candidates even if they don’t fit the role leads to a high turnover rate.
A high turnover rate means more people getting in and out of the organization.
At the end of the day, the cycle is a waste of time, money, and effort for everyone in the company.
Facet 2: Compensation And Benefits
Compensation and benefits are other key functions of HR management.
This department makes sure that every employee receives the corresponding value of their work on time.
On top of that, benefits are also provided at the discretion of the management. Some offer performance bonuses, attendance bonuses, and year-end bonuses.
Benefits
Whether we like it or not, salary is one of the most effective advertising tools of your company.
Applicants consider the salary rate even before sending in their application.
Having a systematic salary grade in your company will help invite people in.
In turn, this is also one of the reasons that increase employee retention rate.
If employees see and feel that they are appropriately compensated for their work, why would they look for another job?
Facet 3: Performance Management
Most companies do performance appraisals at the end of the year, while others have their every quarter.
The HR department is responsible for creating the matrix, managing the appraisal, and gathering and assessing the collected data.
The results of the performance evaluation are then considered as a crucial metric to determine the worker’s employment.
Benefits
A primary benefit that a business gets out from conducting regular performance management is high employee satisfaction.
Imagine working for an organization where no one seems to care whether you are performing well or not.
For consistently excellent performers, this is a disheartening fact. They feel like their efforts are not noticed and appreciated by the company.
This feeling usually translates to them leaving the company for another.
As such, you’ll be left with underperforming employees who you need to retrain, which costs resources that you can’t afford at the moment.
Another benefit that this facet brings is acquiring insight into how the organization is faring internally.
During performance appraisals, you get to measure how an employee is faring with regards to their role and their relationship with peers and with supervisors.
Knowing the gaps between these relationships will result in the efficient drafting of actionable plans.
Say, for example, employees in a particular department are all falling behind on their performance goals.
The HR professional handling this case can immediately inform the upper management and their direct supervisors.
And together, they can craft well-rounded plans that will help these employees cope.
This is a more cost-efficient approach rather than firing each of them, then hiring and training employees.
Facet 4: Succession Planning
Succession planning pertains to the careful identification of critical roles that need to be filled within the next few years.
It is basically a human resource projection plan to ensure that the positions won’t be vacant for too long.
It takes into account resignations and retirements, among other reasons, to make accurate projections for both the short and long term.
Benefits
An efficient succession plan ensures that all critical roles are filled with competent employees.
With a well-made plan, potential employees who can be promoted to take up bigger roles are trained even before the role is vacated. As such, the transition is more seamless.
On another note, it’s also a great motivator for employees to do well in their job once they see that corporate growth is achievable, and the process is transparent.
Investing in your employees is always the route to follow.
Facet 5: HR Information Systems
Lastly, one of the most important facets of human resource management is data management.
HR information systems are used to automate the profiling of applicants, employees, and clients.
Aside from keeping these profiles, human resources also take over a bulk of the administrative paperwork.
An automated information system streamlines every process and stores each data securely.
Benefits
The biggest benefit that comes from this is organized and easily accessible data.
Higher management can easily keep and retrieve personnel data without a hitch as the information keeps everything in check.
Lastly, it also makes several processes easier. Filing for sick and vacation leaves is more straightforward.
Checking of leave credits and calculating for possible bonuses are all accounted for in an HR information system.
Final Words
Human resource management is a pillar for any organization. Without it, an organization’s foundation is at risk.
As such, each facet of human resources must be carefully and expertly carried out to bring in the ideal benefits that are advantageous for the company and its employees.
From talent sourcing down to data management, human resource management caters to both employees and the organization.
Without supporting one will lead to the detriment of the other.
