Top 7 Fundamental Basics of HR
Human resource management is the field that manages human capital within a business. The main objectives of human resource management include the improvement of an organization's profitability, success, and longevity.
There are significant benefits of proper human resource management ranging from increased employee relations to decreased employment law violations. The consequences of inadequate human resource management include both decreased employee performance and bottom line profitability.
Thankfully, there are many best practice tips available for human resources departments to implement. The top 7 fundamental human resource basics include-
A fundamental part of talent management is the recruitment of employees. After completing a thorough job analysis and creating a job description for a specific role, HR professionals can advertise the open position and recruit top talent canidates.
Depending on the role, there may be many adequate applicants to choose from. Your human resources department can use information systems to sort through the applicant pool in order to identify only the most qualified candidates.
Make sure that any screening processes used are fully compliant with employment law including equal employment opportunity legislation. Maintaing your status as an equal employment opportunity employer avoids potential costly lawsuits and damages to your business's reputation.
2. Performance management
Employee performance must be consistently measured in order for HR professionals to understand which employees are successful in their roles. The annual performance review cycle is used by many businesses as their main performance management tool.
The performance review cycle organizes employees into designated categories including top performing, low performing, high potential, and low potential. From project management to employee relations issues, performance reviews help identify and amend employee performance issues.
A consistently low performing employee that fails to improve their behavior may need to be dismissed from your business. Performance management decreases the likelihood of low performing employees negatively impacting both your company culture and employee engagement levels.
Proper human resource management includes regularly offering career development and learning opportunities for employees. Career development opportunities can include mentorships, coaching, or even a company book club.
Many businesses have established budgets for learning and development initiatives that allocate funds based on employee performance and potential. Human resource professionals that look for opportunities to not only improve employee performance but are also genuinely invested in individual employee development are an invaluable resource to your company.
Creating and maintaining a talent pipeline can save your business a lot of time and money in the event that key employees leave your company. Through career development and talent management efforts, your human resources team can formulate and solidify a line of succession to senior positions.
If your business fails to engage in succession planning, an unexpected employee vacancy can bring widespread consequences. Your overall business operations and bottom line may be severely incapacitated by an unplanned departure of a key employee.
The two employee benefit categories are primary and secondary compensation. Primary compensation includes base salary and performance based pay, while secondary benefits includes any nonfiscal rewards ranging from additional paid days off to remote work flexibility.
Finding unique ways to motivate and retain your employees is the top goal of employee benefits administration. If your business is struggling to motivate or retain top talent staff members, it is wise to evaluate the competitiveness and fairness of the employee benefits you afford your employees.
Smart human resource departments use information systems to their benefit. There are many software programs available to streamline and simplify core business management tasks ranging from employee payroll to time tracking.
One great software option for HR professionals to utilize is a learning management system (LMS) that assists with various talent management and career development processes. The LMS is often only a single component of much a larger human resource information system (HRIS).
HR professionals must find a productive way to utilize the data that information systems provide. Metrics and KPIs are commonly analyzed data points used to determine how successfully a business and its employees are performing.
Analytics can also be used to predict future performance through business management processes like sales forecasting. When business professionals have a more realistic understanding of their past, current, and future performance, they are better able to make data driven decisions and improve overall performance.