Human resources (HR) is an umbrella term encompassing a number of related fields and strategies to help an organization achieve its goals. Human resources simply is the group of individuals who compose an organization’s workforce, organization, company, sector, or industry. A smaller more focused term is human capital, that is, the human skills and knowledge that the individuals possess. Similar terms for human resources include human capital, talent, manpower, associates or just simply: human.
The first step to take to implement an effective human resources strategy is to identify those individuals most qualified to serve your organization. There are several ways to do this. You can tap into existing employees through recruitment firms and the like. You can also find and hire employees through both direct and indirect methods, including through talent management community and on-boarding. Finally, you can tap into a third party source such as a staffing firm or a management community. Each of these strategies requires specific knowledge about the individuals to be employed.
Recruitment-based staffing involves recruiting qualified individuals, interviewing them, screening them, hiring them, and providing them with the opportunity to develop in your organization. Typically, this recruitment strategy yields the best results, but may not meet your immediate needs. If your immediate needs are not fulfilled through recruitment-based staffing, you can still utilize the talent management community or the on-boarding process, but it will take a longer period of time. Ultimately, though, you will want to focus your time and efforts on those individuals most likely to fulfill your future human resources needs.
Direct labor sourcing involves hiring an individual directly from outside the organization. This method allows you to focus on building relationships with potential employees and give them access to your human resources strategy, instead of focusing on recruitment-based processes. It also tends to yield better results in terms of finding quality candidates. However, if you lack experience in the field, you may not know which applicants will be a good fit for your business. In addition, you may not have access to applicants who are truly the best suited for your unique organizational structure.
Compensation-based hiring involves recruiting, hiring, and retaining qualified employees from within your company. You must provide compensation that is commensurate with the skills and competencies of each employee. As part of the compensation agreement, you must specify the level of compensation appropriate to the role the employee is expected to perform. If the employee’s performance meets or exceeds your expectations, you should compensate him accordingly. Otherwise, your human resources department may need to step in and make additional compensation arrangements.
The third area of HRM that often gets overlooked is workforce planning. If your human resources department does not manage the overall workforce, it is nearly impossible for you to meet your goals. Human resources managers must work closely with all employees to ensure that they are not only working optimally, but that they are also satisfied with their positions. While some human resources professionals may be capable of implementing corrective strategies on their own, it is often much more cost effective to hire outside specialists to help you plan the best workplace for you.
Finally, the last major area of HRM is labor relations. If your HRM personnel do not engage in effective labor relations practices, you will find that your workforce contracts with your organization may not be enforceable. On the other hand, if human resources personnel engage in effective relations with management, they may be able to reduce overall staffing costs. Ultimately, proper labor relations management can positively impact your business in a number of ways, including improving employee retention, reducing your healthcare costs, increasing productivity, and boosting employee satisfaction.
As you can see, human resources plays a significant role in the operation of any type of business. In particular, it is vital for businesses with a strong customer base to maintain a good relationship with their labor force. As such, it is important for the HRM director of your company to develop a plan for managing labor relations. The specific areas in which this strategy should focus include fair treatment of employees, better working conditions, improved relations between management and labor, and increasing employee retention. By maintaining a strong relationship between the management and the work force, you will be able to effectively hire and retain the people that are the key to your success.