2.1 Practising Human Resources
The HR department's actions will differ when it comes to HR practices vs. functions. Functions are activities which are handled either in-house or are outsourced to a reputable human resources specialist company. Practices are the implementation of HR strategies and include systems which are essential to the way the company does business. HR functions usually include record keeping, new employee orientation, and the processing of salaries, just to name a few. How and to what extent the HR department is responsible for these functions is determined by their experience, the size of the company, and the number of employees currently employed. The company budget will also play a role in this and determine the size of the HR department. In some instances, the budget given to the department can enable them to outsource some of the functions, giving them time to focus on strategic management and planning.
Recruiting and Selecting
The human resources department will concentrate on recruitment practices which are focused on the company's mission and the culture within the workplace. A good example is a company that wants to embrace diversity as part of their recruitment practices to ensure that they attract a host of personalities who all have their own unique benefits and abilities within the working environment.
Balance between work and life
The HR department will implement employment practices which enable their teams to enjoy a work- life balance to improve productivity and company success moving forward. The HR department will schedule training, manage logistics, and provide technology for remote access. This enables teams to work from home and reduce work related stress, improve efficiency, and give employees the time they need to focus on family obligations while still maintaining high productivity on a daily basis.
Training and development
Training and development are part of the function of the human resources department, which includes training, orientation, and development of new and existing employees. This improves job skills within the current positions and helps to increase the value of employees within the company. Training and development ensures all employees have the knowledge and skill that they need to complete their jobs to the highest standard.
Compensation
Compensation is the manner in which a company rewards employees. It is part of the HR role to ensure that the wage is within budget and yet the employee is happy with what they are earning to keep them loyal and help retain them. Human resource management or HRM is where people are managed effectively based on their performance. The aim is to ensure an open, caring, and flexible management style is adopted which helps to motivate and develop employees. This means that HR departments need to make sure that they support the other departments within the company. Good HR practices are essential in helping the company meet their goals and boost productivity on a daily basis.
2.2 HR Good Practices
An integrated and strategic approach to human resource management can be linked to strategic direction and systematic approaches. This helps the company clarify their vision and mission statement, establishing a link between the HR department and motivated and happy employees, and they are able to forecast their human resources needs both in the short and the long term. It is important for managers to adopt a flexible and open management style to ensure that they are approachable.
Common practices include managing people in an effective manner using a performance management system which ensures that all objectives for staff are linked to the objectives of the department involved. This will also cover onsite training. They will focus on enhancing the staff's ability to perform at their best through effective training programmes while ensuring that the teams provide outstanding services at all times.
Good practice indicators include:
-VMV - vision, mission, and values
-Sense of purpose
-Service culture
-Staff involved in decisions and discussions regarding ownership of the company
-The commitment of management is shown when it comes to the allocation of the departments VMV.
-An effective communications programme is implemented
-Training is introduced to develop behaviour and skills
-The policies and procedures manual focuses on customer service and support.
-Performance is tracked and measured effectively
-Drawing up an effective human resources management plan
-The plan is developed under consideration from senior management.
-The top team plays a role in the strategic direction of each department.
-HR issues are endorsed by top team members
-HR issues are approved by the top team
-HR issues are identified using an environment scan
-Staff opinions and surveys are used to identify ongoing HR issues
-Objectives are set out based on planning and explaining issues which can be achieved through the company's mission statement.
-The responsibilities of the implementation of the human resources management plan must be assigned in a clear and easy to understand manner.
-The plan must be implemented with enough resource support.
-The plan must be reviewed once the system is in place.
-An effective HR information system must be developed.
Planning of employment
-An effective information system must be put in place
-A plan relating to actionable programmes should be put in place to reduce the gaps in employment.
-There should be a clear posting policy regarding career paths and this must be made available to and be known by the staff.
-Interviews should be arranged for all employees to identify their motivations, inspirations, and aspirations moving forward.
-It is necessary to review and then update the competency profiles accordingly.
Performance management system
-Support from senior management regarding resources and priority of the performance management system.
-Setting objectives and linking them to the company's objectives moving forward.
-Any appraisers must be trained in the performance management system good practices guide and have the skills required.
-Ensure fairness, openness, and objectivity throughout the appraisal process.
-Identify training and developmental needs.
-Ensure staff members recognise performance management as a joint responsibility.
-It is an ongoing process carried out at regular intervals.
-Regularly review the system.
Training and development
Strategically link training and development strategies to company objectives.
The training and development should be joined to the company plans.
All new staff should receive adequate induction training.
The policies should be reviewed on a regular basis.
Work quality should show clear evidence of improvement.
Managers should be able to provide feedback on the performance of all employee learning experiences.
Service quality enhancement
Programmes, practices, policies, and procedures focusing on a customer culture within the workplace.
Productivity should be increased.
The staff should take their own initiative to ensure the highest level of customer service.
Performance improvement should be measured and tracked.
The public image of the company should be enhanced.
FACT
82% of companies without talent management programs experience employee retention problems.
Source: hrtoolbench.com
2.3 Human resource management
As a company grows, it needs to keep up with this growth by introducing and managing team members accordingly. This can result in employees and owners finding themselves juggling a number of roles within the business, which can slow down their productivity until a person is employed or an HR person is introduced to help secure staff, meet budgets, and help the company grow to its full potential.
There are a few things that the HR management will be responsible for, including:
-Job analysis and description
-Hiring of new employees
-Orientation and training of all employees
-Performance appraisals throughout the year
-Managing compensation
-Handling discipline within the workplace.
Job analysis and description
Whether you are hiring your very first employee or you have hired hundreds of employees in the past, there is one main question you always want to ask yourself and that is what is the person going to do within the company? Before you can start a search, you need a clear indication of what exactly you need and what you expect from the team member.
Identify whether the responsibility could be handled by another department or position, reducing the need to spend money and hire another employee, which is only going to drain resources. You will also need to confirm whether you need someone in a full time capacity or whether the job can be handled as a temporary or part time position, helping you reduce costs and stay within your employment budget. Look at how you are going to restructure a certain department in order to accommodate a new staff member: what impact is that going to have on the department and how will this impact the company as a whole?
Carry out a thorough job analysis which will help you identify what tasks this new person will need to perform. It may help to sit down and brainstorm with people in the current department to help you put an effective duty list together, which will help you screen applicants and compare them to the duties list to ensure that they can accomplish the tasks effectively. Now you can put a job specification in place. This is where you will need to ask yourself what qualities and skills you feel are essential in order for the staff member to complete the tasks in an efficient and effective manner.
Use this to help you put a job specification together which will be a list of what you expect and what the applicant needs. This should include everything from past work experience to their educational experience, what skills they have to whether they have used initiative in the past. From here, you can easily put together a job description which you will need to identify their salary. Write your job description which should list all the functions of the position, what expectations and past working experience you are expecting, and the salary being offered. This should be used as a tool to help you shortlist potential applicants.
Hiring a new employee
This starts with the recruitment process which is where you need to ensure that you are choosing the right person for the job based on their experience and skills when compared to your job description that you drew up previously. Start with current employees before you look at outside parties, as often you will have the ability to promote an employee within the company and give them an opportunity for a role that they are more than able to perform.
Recruitment options can include:
-Adding internal postings in the workplace to see if anyone wants to apply for a promotion and take on the duties being offered.
-Considering an employee referral programme and letting other employees put their recommendations forward, keeping the applicant in-house.
-Using an employment agency to handle the recruitment process for you.
-Looking at current colleges and universities and seeing if any recent graduates wish to apply.
-Taking advantage of online job boards.
-Placing a classified advert.
-Sharing the news that you are seeking applicants using word of mouth
The selection process can be quite daunting, though it is a good idea to get it done as quickly as possible. This will not only benefit the company, but also reduce the risk of the potential applicant being snapped up by one of your competitors. Rely on your job specifications throughout this step, always ensuring that the person you are looking at is able and competent to complete the duties set out and has the necessary skills to complete the job to the highest standard.
Focus on their written application to ensure that the applicant is able to communicate effectively. The written application will also provide you with valuable information, such as whether they have a driving license, etc. Make use of written tests which can identify technical knowledge and further test the applicant on their written communication skills, etc. Consider making use of an oral test which can identify communication abilities. This may involve asking open ended questions, asking them for instructions, or even asking them about a hypothetical problem to resolve.
Use the interview process as a way to get to know potential applicants and allow the owner or manager to get to know them as well. A well-planned interview with open ended questions can be one of the best ways to identify which applicants are best suited for the position and who will blend in with the company as a whole. Use the interview process as an opportunity to implement a practical test, giving the applicant a chance to perform a few of the duties to ensure that they are as good in person as they claim to be on paper. For example, if you are a catering company, put the applicant to the test in the kitchen for a shift, or if you are looking for a receptionist, put them on the switchboard for a few hours.
Never hire anyone without performing the necessary reference checks. Call past employers and ask them about the applicant`s abilities, work ethic, and anything else you want to know. Confirm employment dates and salary and see if you get a good recommendation or whether the company point blank refuses. Anyone refusing to give a reference usually has a good reason and, therefore, it is worthwhile speaking to the applicant again regarding that particular employment experience.
Ensure when you are conducting an interview that you focus on obtaining essential information which includes opinions and facts about the applicant which can help you determine if they are the right person for the position. Always prepare for each and every interview, develop a full list of questions you want to ask, and choose who will be involved in this process. Are you interviewing on your own and then with top level management or are you all going to be involved from the initial stages through to hiring? Try to keep the interview as conversational as possible and stay on track. Remember there are some things that are considered illegal and that you must not ask, so keep your questions to the point and know the employment rules and regulations. Ensure that none of your questions will be discriminatory in any way. Give the applicant a chance to ask questions at the end of the interview.
Orientation and training
Remember that you will get to enjoy a good employee retention rate if you start each new applicant off with a thorough orientation programme. The employee should feel comfortable, informed, and supported for the first few days of their employment. An organised and well-planned orientation programme can give your new employee the skills and knowledge they need to help them fit in quickly and make them feel like a valued member of the team within the shortest period of time.
The entire training process is one that needs to be carefully thought out and planned to ensure that every employee feels valued and important. Often, employers will simply throw a new employee into a burning fire rather than giving them the essential tools they need to succeed. This is only going to result in the employer feeling stressed and anxious and wanting to escape as quickly as possible.
Ensure every employee gets a good orientation, their performance is constantly monitored, and they are provided with any additional training they may need in the future to make them feel wanted, important, and valuable, and help you keep them moving forward.
Performance appraisals
Performance evaluations are essential to ensure that the company is operating to its full potential and that the employees are completing their tasks to the highest standard. This is an opportunity to identify where potential problems may lie and which employees may require training and support. Performance evaluations should be an ongoing process and not something that is completed once a year. As an HR team member, you can consider conducting a formal evaluation once or twice a year combined with a number of informal appraisals carried out during the remainder of the year.
Informal conversations should be focused on the following:
-Seeing the appraisal process as a positive solution.
-Ensuring everyone sees the informal appraisals as an opportunity to improve communications.
-It is a chance to establish some clear expectations on what the company expects moving forward.
-It is an opportunity to reinforce good performances.
-You can use these informal conversations to improve any satisfactory performances.
Formal performance reviews are a rather tricky decision, as determining how often to have these should be based on the size of the company. How frequently the formal performance reviews are carried out will be determined by the employer and the business. Some companies prefer carrying these out every three months, while there are companies that will carry out a formal performance review every six months to a year.
A good way to structure the formal performance procedure is to carry out the review daily for the first week and then once a week for the first month of work. From here, employees can be reviewed once a month for their first year at the company and then once a year thereon. This will ensure that the HR department can pick up on any problems and ensure adequate training is provided.
Compensation
Compensation has changed dramatically over the years and in order to secure the best applicants, you can't simply pay the amount you expect to pay, such as minimum wage. Companies use direct and indirect ways to make payments to ensure that they get the employee that they feel is going to be beneficial to their business success moving forward.
Direct compensation is your basic wage, the salary, which is an annual or an hourly wage, along with any performance based bonuses which may be paid, including a possible profit sharing bonus when the company reaches a certain level. Indirect compensation, on the other hand, is anything such as retirement options, health insurance, paid leave, moving expenses, housing, and more. These combined with the direct compensation will create a competitive and welcome compensation package to appeal to the applicant.
Discipline
Discipline falls under the human resource management role and is an important part of your performance management. While you must recognise employees and give them the praise they deserve, you also need to discipline employees and help steer them in the right direction. This may be due to unacceptable working habits, attitude, conduct, performance, or attendance. When it comes to disciplinary action, you can find yourself surrounded by conflict, and if you don't follow the guidelines to the letter, this can become a legal matter very quickly.
There are seven steps you need to take when it comes to disciplinary action:
1. Warn the employee of their actions and when they are doing wrong. Ensure they are aware of the disciplinary action which could be brought against them if they do not remedy their ways. In some cases, you may need to provide some additional training to ensure that they can make the necessary changes. Ensure you also do this in writing, keeping documented proof and reducing the risk of you being dragged through an unwelcome legal process.
2. Confirm with the employee that the rule they broke or what they did had a negative impact on the business operations. Ensure that all your employees sign the policies and procedure handbook during orientation. This way they cannot turn around and advise that they never knew that rule.
3. It is essential that you or the manager that brought these concerns to your attention do what you can to ensure the employee did disobey an order or violate a rule. The employee should always be advised of what they have done wrong and be given the chance to defend themselves accordingly.
4. There must always be a fair investigation which must be conducted as quickly as possible. It is important that this is done without discrimination to identify if the employee is guilty.
5. It is your responsibility to ensure that there is enough objective evidence to show guilt. Remember a manager being suspicious, a colleague thinking that they saw something, or someone claiming something without solid proof cannot be used as evidence.
6. Rules need to be applied fairly, uniformly, and without discrimination. Be aware of past cases where present employees have done worse and broken the rules without disciplinary action. This could result in this particular case being attacked, as the same rule must apply to everyone at all times.
7. The degree of punishment or discipline given should be related to how serious the offence is along with the past record of the employee. Discharging the person from their duties is the largest and worst penalty. Ensure the punishment you hand down meets the seriousness of the infringement.
Module summary
This module provided you with valuable insight into human resources practices. You learned how to identify good human resources practices along with good practice indicators. This module also provided you some insight into human resource management, from the job description through to disciplinary action and more.
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