Human Resource Basics Every HR Professional Should Know
Regardless of the size of your business, having good human resource management is key to the success of your organization. Before going further, perhaps we need to clarify the concept of human resource management. Human Resource Management (HRM) is the art of managing people in a bid to optimize their performance.
For instance, hiring people who already fit into the culture of an organization would be a more productive ordeal than hiring people who would have a hard time fitting in. Another instance is engagement. When employees are engaged, they are more productive and deliver better output. By keeping employees engaged, we are helping the company. Therefore, human resource management is all about optimizing an organization’s performance by managing its human resources well.
Having understood the concept of human resource management, one then begins to wonder what human resources is. Briefly, human resources are all the individuals that work for an organization or contribute their quota in one way or another. These people can be full time staff or contract workers. Nowadays, the concept of contract staffing is now more popular than it was years ago.
With reference to human resource management, there are a couple of key areas of human resource management. These key areas include:
1. Recruitment & selection
Recruitment and selection are probably the most obvious areas of HR. People are the backbone of every organization, and finding the best fit is always a huge task. Whenever there is a new job opening, the HR uses different selection tools to find the best candidate for the job. These selection tools may include assessments, interviews, reference checks, and other recruitment tools. Recruitment and assessment are one of the core areas of human resource management.
It is a prerogative of the HR manager to ensure that employees are really who they claim to be. Therefore, the HR is responsible for conducting background checks on employees and prospective employees. That way, the organization is protected against any occurrence that may pose a threat to the organization and its staff in future.
3. Performance & Management
Once employees come on board; it becomes imperative for the HR to measure performance. It is part of the duties of the HR to help people perform better at their jobs. Performance management is a system that helps employees to get feedback on their performance at work. Good performance management is essential within the workplace. It helps to determine which employee is underperforming and may have to be let out of the organization.
4. Learning & Development
Sometimes, employees struggle when they begin to operate in certain areas. At such times, learning and development can go a long way to improve their performance. Learning and development is driven by HR and can go a long way to help the organization achieve its long-term plans. In big organizations, predefined budgets are set for learning and development schemes.
5. Succession Planning
This is the scope of planning contingencies ahead of when key employees suddenly leave the company. For instance, if a key manager resigns, having a viable replacement handy will ensure continuity and can save costs for the organization. Succession planning is usually based on individual performance and learning & development efforts. It helps to create a pool of qualified candidates that can be deployed to fill senior positions whenever the need warrants.
6. Compensation & Benefits
Another core area of HR management is compensation and benefits. To motivate and retain employees, compensating them fairly is one of the key action points. Compensation and benefits are not limited to pay or extra pay alone. They include giving extra holidays, making provisions for HMO & pension, allowing flexible working hours, allocating an official car, and so on. It has been proven that rewarding people in ways that motivate them is influential to the success of an organization.
This is not a practice, but a tool that helps to perform better at work. An HRIS tool helps to facilitate all the processes of an HR manager. For instance, OutsourceHR is a solution that helps to manage the recruitment, onboarding, payroll and appraisal of employees within an organization. It caters for the journey of employees right from the point to employment, right up until disengagement.
A lot of HR work revolves around data and analytics. Within the last few years, the role of HR has become data-driven. Once data is gathered with the human resource information system, more informed decisions can be made based on metrics. One easy way to keep track of essential data is via HR metrics or HR KPIs. These numbers are a representation of how well a company is doing based on any given measurement. These metrics can help the HR manager to make projections towards the future of the organization.