2020 has welcomed new changes and industrial revolutions. The workplace has changed a lot in recent years. This change also has a similar effect on the hiring and retaining of talent for the organization. Human resources have a tough time recruiting the best talent. Digitization has somehow helped the process, as the data can be stored and evaluated easily. But these rapid changes are also demanding a rapid change in human resource practices.
The Society of Human Resource Management, the US Bureau of Labor Statistics and Payscale have shed light on the enthralling results, related to Human resource issues including pay raise, employee retention, and turnover. Reports suggested that around 57% of organizations viewed employee retention as a problem, and 22% of new hires leave their jobs within 45 days of being hired. The reasons majorly include poor performance and temperament issues. Within 18 months 46% of new hires fail and leave the job. Majority times the reason is due to lack of motivation and lack of ‘coachability’ and only 11% is due to lack of skills.
HR Management Policies and Practices Are Vital
Businesses should not just focus on the latest technology trends but also strategize creative HR ideas to engage employees. 9-5 jobs with the weekend off and a personal desk at the corner were traditionally considered as perks. Today, the workforce demands better office perks, which is globally making companies fight hard to hire and retain top talent. These issues need to be addressed with an upgraded human resource practice. The best human resource practices benefit the company with multiple opportunities like hiring employees efficiently, onboarding them enthusiastically, training them strategically and engaging all employees thoughtfully.
Human Resource management policies and practices are important not just for the employees but also for the company growth. Often times the HR practices and HR activities are intermingled due to lack of understanding. Both are equally responsible for optimizing the organization’s human capital investment and for the HR department to reach its full potential. Human resource practices are mostly strategic that assist the organization’s business plan and forms the foundation and guidance for managing the employees. If HR practices describe what an organization wants to do and why, then HR activities address how. By practicing both HR best practices and activities together, Human Resource management has the ability to thrive the company benefits.
Best Human Resource Management Practices
There has been a long debate on the HR best practices which are utilized by companies to boost the performance. Many of the traditional HR strategies have found their place in the “HR best practices”, despite lacking in delivering the desired company goal or performance. The HR practices cannot be categorized as one-size-fits-all, as these practices need to be aligned with the company goals. However, there are few practices that can be labeled as the universal HR practices which offer companies with the finest business performance, regardless of the organization or industry it is applied to. These practices, when combined with the company goals, can turn into the best fit for the organization. Combining the universal practices with the company goals is termed as strategic human resource management.
By implementing the further mentioned universal best Human Resource practices, the organizations can expect an increase in employee productivity, and a well-balanced corporate culture.
Recruitment and Selection
For the HR associates responsible for recruitment and hiring, employee retention is one of the key success factors. Therefore, the hiring process must be easy to understand and implement. At the same time, how these associates efficiently find and hire remarkable employees is important for the success of the company. So, making a mistake in the recruitment needs to be very low. By using other tools such as interviews, personality assessments, or reference checks, they can further streamline their process or make it more selective.
Training and Development
With the evolving business landscape, organizations need employees who are keeping pace with it. Learning has become a way for workforces to invest in enhancing their skills, which is in the form of training. Moreover, according to the Economist’s Lifelong Learning special report, the number of on-demand courses has grown exponentially. This leads employees to seek online courses to upskill so that they can contribute to the organization’s growth. For HR professionals, it is HR best practice to invest in the training and development of the employees.
Rewards and recognition
Every employee is a valuable member of the organization and should be treated as such. By recognizing their talent, employees will feel appreciated. So, HR professionals should focus on rewarding employees with some gifts and public appreciation.
360-degree performance management
HR department implementing 360-degree performance management will push employees to give their best shot. Under this performance management, information related to the employee will be gathered. Moreover, relevant feedbacks are taken from a selection of an employee’s contacts, including their manager, colleagues, subordinates, and external contacts.
The Open book management style
Implementing transparency in the business ensures that organizations are sharing its vision and keeping everyone on the same page. This motivates employees towards archiving business goals because they will have a long-term vision as to where and for what they are working. As a result, business productivity will be increased.
Innovative Human Resource Practices
Best practices in Human Resource Management boost company productivity, but it is also necessary to plan and implement creative HR ideas. In order to help employees be heartily involved in the workplace. Creative HR strategies can be original or drawn from the ideas of others. The goal is to ensure the enhanced productivity and performance of the employees. With the proper execution and dedication of these innovative HR practices, it can make a difference to fill the organization with the right people.
Some of the best Innovative HR practices implemented globally by the companies are listed below,
M.A.R.T Feedback evaluation for the employees
The traditional evaluation sheet for the employees is not effective today. Anonymous feedback certainly leads to criticism which is not constructive and would be better if left unsaid. The traditional method is sure of no help leading to feedback discussion. While in the discussion one should provide feedback that is Specific, Measurable, Actionable, Relevant and Timely.
This technique will help the teammates to provide constructive feedback for the members that can be helpful and inspiring. The discussions will filter unnecessary opinions and actually beneficial in improving employee productivity.
Treat the Employees as Customers
Employees should feel that they are an important part of the company. For instance, the way brand ambassadors are treated which makes them love the company enough to promote the product. The same behavior must be practiced in the workplace. The effort taken into appreciating and validating the employees is going to foster employee who loves their workplace. An employee is likely to be a part of the company for the long term if he is supported, trusted and is a part of a meaningful team.
By creating an environment where employees are highly valued will make the team appreciate the company’s work environment. A happy employee will be more motivated to promote the company in the outside world.
Unlimited Paid offs
Many companies and startups have adopted unlimited paid offs in the workplace policy. To the surprise, these unlimited paid offs have decreased the number of holidays taken by the employees. Not just the punctuality but creativity and productivity have also improved. This approach helps to maintain a lower risk of burnout. The benefits of paid