In this Viindoo article, Viindoo go over the 7 Best practices in human resource management for Your Organization. Over the years, HR has undergone significant changes and continues to evolve. Despite this, fundamental HR best practices have remained and continue to serve as a framework for HR practitioners. These practices are essential, but what do they involve, and why are they crucial? Let’s dive in!
What are Human resource best practices?
There are two schools of thought in human resource management research: the best fit and the best practice. The best fit approach emphasizes the need for HR policies to align with business strategy to add value, taking into account the needs of both the organization and its employees.
On the other hand, the best practice approach argues that there are universal HR processes that lead to superior business performance, regardless of the organizational setting or industry. While there is debate on the merits and flaws of each approach, the ideal HR strategy should strive for alignment with the organization's strategy for optimal efficiency, which is also known as Strategic Human Resource Management.
What are the best practices in human resource management?
7 Best Practices in human resource management
Human resource management is a critical component of any organization's success. As companies strive to attract and retain top talent, it is essential to have effective HR practices in place. Whether you are a small business owner or a large corporation, understanding the best practices in human resource management is essential to keep your team motivated and engaged. Here are 7 Best human resource management practices:
Safe, Healthy, and Happy Workplace
The primary HR best practice is providing job security, and a healthy and Happy Workplace, as it offers stability and the ability to provide for oneself and one's family. This creates a formal and informal agreement between employer and employee, and is crucial to HR's function. Threats to job security can cause a ripple effect through an organization. Job security also benefits employers by retaining trained employees, as layoffs are costly and can drive employees to competitors.
For many individuals, work is a crucial and stable component in their lives due to the unpredictable nature of life. A 2020 survey in the UK found that 28% of professionals ranked job security as important. This highlights the global significance of job security in HR practices.
Safe, Healthy, and Happy Workplace
Hiring the right people
Selective hiring is the second best practice in HR, as it allows companies to recruit employees who can contribute value to the organization. It's crucial to hire exceptional candidates who are fit for the job, and having a structured and fair selection process is necessary to reflect legal requirements and internal diversity goals. A diverse workforce can help companies better understand the needs of different customers and boost performance, as high performers can make a huge difference in performance compared to average performers.
Pre-employment assessments are utilized to determine three critical qualities in a candidate. These are their capability, which involves assessing their technical and soft skills to determine their ability to do the job well. Trainability is also considered to assess whether the person has the potential to improve their skills and continue learning. Lastly, commitment is evaluated to determine whether the candidate will stay dedicated to their work and the organization, and whether they can be retained once they become productive.
In today’s digital world, there are a lot of different Online HRM software we can use to make the right selection. More and more companies vigorously keep track of their recruitment metrics to see how well they are doing in this regard.
Commonly used selection instruments are structured and unstructured interviews, IQ tests, personality assessments, work tests, peer assessments, and reference checks. These (pre-employment) assessments are used to uncover three key candidate characteristics.
Hiring the right people
Self-managed and effective teams
Collaboration is vital for accomplishing objectives, and high-performance teams are essential for any company to achieve success. Teams are valuable because they bring together people who have different perspectives and ideas but are working towards a common objective. This generates a pool of ideas that can be processed and combined to select the best ones. The best teams are both cognitively diverse and psychologically safe, meaning that members can feel comfortable expressing different ideas and discussing them.
HR has an important responsibility in creating and nurturing high-performance teams, including utilizing tools like Belbin’s Team Role Inventory to aid in team creation and cooperation. Effective HR management also involves measuring team performance, rewarding team excellence, advising management on facilitating teamwork and using personality assessments to understand how team members think and behave.
Various tools like communication software, feedback tools, and project management software facilitate teamwork and improve efficiency. Furthermore, HR should encourage teams to work with other teams and departments to promote an effective and efficient organization. Tools like Organizational Network Analysis can aid in this process.
Self-managed and effective teams
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Fair Evaluation System
The fourth HR best practice is contingent compensation, which is focused on compensation and benefits. When you hire the right people, it's important to compensate them above average to retain them and pay them fairly. This best practice should be combined with selective hiring and employment security to add more value to the company. However, offering above-average compensation could discourage bad employees from leaving. The compensation package can include financial pay and employee benefits, and it's important to follow market trends to understand the average rate of pay and where the company ranks.
Additionally, individual rewards should be coupled with the types of contributions employees make to incentivize them to maximize organizational performance outcomes and create a sense of ownership. Profit sharing, shared ownership, or stock options are great ways to create employee commitment to the company's long-term vision and retain high potentials. This type of co-ownership is usually reserved for "Criticals," who are people with unique and valuable skills to the business. Senior managers, who usually fit into this category, are often offered these benefits.
Fair Evaluation System
Knowledge Sharing
According to this HR best practice, it is essential for companies to invest heavily in the training of their employees in terms of time and budget. Once you have hired the best people, it is crucial to ensure that they remain up to date with the latest advancements in technology, and this is where learning and development come into play.
To stay competitive and innovative, organizations need to create a culture of continuous learning that keeps pace with the rapid changes in technology. Employers should invest in skills-specific training, both formal and on-the-job, which includes feedback, coaching, and peer learning. On-the-job learning should account for about 70% of learning, while 20% should come from developmental relationships, and 10% from formal coursework and training.
Younger generations, such as Millennials and Generation Z, consider learning and personal growth to be essential to their professional development. Employers who do not offer development opportunities risk losing their younger employees to other organizations. In 2023, HR trends will focus on bringing learning opportunities to employees' daily work and adopting a strategic approach to developing the soft and hard skills needed to remain competitive.
HR professionals must also stay up to date with the latest HR skills and trends by taking courses and training. Check out our courses at the Academy to Innovate HR to learn the skills needed to succeed in HR in the 21st century.
Knowledge Sharing
>>>> See more: 5 HRM software features
Rewards and Recognition
This HR best practice emphasizes the importance of rewarding and recognizing employees for their hard work and contributions. This includes both financial and non-financial rewards, such as bonuses, promotions, public recognition, and opportunities for professional growth. By acknowledging and valuing their efforts, employees feel motivated to continue performing at a high level, which ultimately benefits the organization as a whole.
Rewards and Recognition
Open House Discussions and Feedback Mechanism
Open House Discussions and Feedback Mechanism: This HR best practice focuses on creating an open and transparent communication culture within the organization. Open house discussions provide a platform for employees to share their ideas, concerns, and feedback directly with management, fostering a sense of inclusivity and trust. Feedback mechanisms, such as regular performance evaluations and employee surveys, enable management to gather valuable information on employee satisfaction, engagement, and areas for improvement. By actively listening to and responding to employee feedback, organizations can create a positive and supportive work environment that encourages collaboration and innovation.
FAQ
What practices can organizations adopt to promote employee engagement?
Organizations can promote employee engagement by fostering a positive work culture, encouraging open communication, recognizing and rewarding employee contributions, providing opportunities for growth and advancement, and promoting work-life balance.
How can organizations create a diverse and inclusive workplace?
Effective strategies for employee retention include offering competitive compensation and benefits, providing opportunities for career development and advancement, creating a positive work environment, recognizing and rewarding employee achievements, and promoting work-life balance.
How can organizations effectively handle employee performance issues?
Practices that contribute to a positive workplace culture include fostering open communication and transparency, promoting teamwork and collaboration, recognizing and celebrating employee achievements, providing opportunities for professional growth, and creating a supportive and inclusive work environment.
What practices contribute to a positive workplace culture?
Practices that contribute to a positive workplace culture include fostering open communication and transparency, promoting teamwork and collaboration, recognizing and celebrating employee achievements, providing opportunities for professional growth, and creating a supportive and inclusive work environment.
What are the key components of an effective employee onboarding program?
An effective employee onboarding program should include components such as introducing company policies and culture, providing necessary training and resources, assigning mentors or buddies, clarifying job responsibilities and expectations, and facilitating social integration within the organization.
The article presents an overview of 7 Best practices in human resource management that encompass different aspects of HR management such as recruitment, training, job security, and promoting an open and collaborative culture. To learn more about doing HR in a better way, check out the Viindoo blog to Innovate HR and stay up-to-date.
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