HR professionals and departments play a vital role in the success or failure of an organization.
If given the right tools, they can become a crucial strategic asset that facilitates stronger growth.
Those who excel in the four HR knowledge areas can transform their company’s overall performance.
It can be easy to assume that all a business needs to do to succeed is to focus on the financials and whether their product or service is selling.
The reality is that so much more goes into a company’s overall performance, all of which will contribute to its bottom line.
One department, in particular, can have a direct impact on productivity and profitability far more than others; the HR department.
The role of HR, whether that is an individual or a whole team, is crucial to how a company operates and how its employees perform. Right from the first introduction of HR departments in the early 1900s, companies around the world started to see a marked difference in a positive direction. The central element of that was how these departments were able to transform the morale and connections with employees in the organization, and the direct correlation that it had on performance and productivity.
How HR can create an optimal environment
Today, HR departments need to be a strategic asset for the company and actively contribute to creating an optimal environment for productivity by excelling in the below areas:
Talent acquisition and retention
According to the 2016 Global CEO study by PWC, attracting and retaining top talent is the vital crux on which businesses can succeed or falter. It is the role of HR to support and incentivize employees so that senior staff members remain loyal and that great talent can be acquired. It is also crucial that they parley this responsibility into appropriate skills development.
By ensuring that employees have access to the right training, they are not only encouraged to stay within an organization that facilitates their personal growth, but they will become better at their jobs. The internal growth of employees, as well as increased retention, as a result, fosters institutional memory, i.e., long-term experience, which is utterly irreplaceable.
The best HR departments will excel in workforce planning. They will be able to anticipate the needs of the organization, especially if they have access to HR software that can use collated data analytics to predict pitfalls and changes. That same software can also help them stay abreast of market levels as per salaries and benefits, so they never fall behind and cost the company valuable talent.
Company culture might well be outlined on paper by management, but its actual implementation and effectiveness are always down to the HR department. If they fail to create an environment that is inclusive and set an example that honest, open communication is encouraged, then there is no way the rest of the company will believe in it.
By implementing an HR software, that will take care of the mundane tasks, an HR department will then be able to devote enough time to ensure the right culture runs throughout the organization and will be a far greater asset to the organization than one that is caught up in procedures and data.
HR analytics and dashboards
HR teams will often find themselves handling the most procedural elements within any organization. Since these will most likely deal with factors that are extremely important to employees, like their payroll and their benefits, these system procedures and policies must be as smooth as possible, as well as compliant where necessary, to reassure employees that they are the top priority.
From short-term suppliers to full-time staff, HR needs to be able to gather, collate and assess all of the relevant data so that they can perform the required functions to ensure the employee is satisfied.
By using comprehensive HR software such as Aqeed People the department can achieve much of this very quickly, as well as being able to communicate elements of it more effectively with the employee and keep relevant information saved for future used.
Essentially, the dream HR team is a combination of technology and personality.
The technology side offers the speed and efficiency to facilitate the dissemination of information, integral data collation and freeing up of HR personnel time.
The personality side is all about connection and engagement. If given the opportunity, for instance, not bogged down by monotonous data entry, HR personnel have the chance to build a rapport with employees and use their advanced communication skills to foster greater staff satisfaction and well-being.
Both of these elements, higher efficiency, and closer engagement, are the key to a company running more successfully, both in productivity and financial performance.