A company’s employees play a huge role in its success or failure. This is why having a human resources (HR) foundation that can attract, develop, and retain top talent is so important. Building a solid HR foundation means organizations get the systems and staff in place to support both business objectives and employee needs.
Develop HR Policies and Procedures
Every company should start by creating a set of clearly written HR policies and procedures. These guidelines establish expectations and rules across key areas like hiring, compensation, performance management, discipline issues, training, benefits administration, and more. Well-defined policies applied consistently ensure HR coordinates essential activities to support managers and employees. They also protect the company legally.
Implement Effective Recruiting
One primary task for HR is coordinating the recruiting and hiring processes across the organization. This involves things like posting open positions, reviewing applicant resumes, conducting interviews and background checks, and ultimately securing qualified candidates. Building an effective recruiting function requires defining hiring methodology, integrating it with managers, and monitoring metrics like cost-per-hire, time-to-fill, and quality-of-hire.
Administer Payroll and Benefits
In addition to talent management, a core HR responsibility involves administering employee payroll and benefits programs. This includes properly calculating pay and tax withholdings every pay period and distributing funds on schedule. On the benefits side, HR coordinates elements like health insurance, retirement plans, paid time off, and ancillary perks while also assisting employees with questions or issues.
Support Employee Development
A strong HR team also actively nurtures talent within the organization through development initiatives. This means facilitating employee training and mentoring programs to expand skills. HR may also provide coaching to help staff create career advancement plans aligned with personal and company goals. Investing in growth ultimately boosts retention.
Manage Compliance Requirements
HR plays a huge part in ensuring the company follows federal, state, and local employment laws regarding issues like equal opportunity, harassment, health and safety, family leave, accommodations for disability, wage standards and labor relations. According to the good folk over at ProTrain, staying current on legal and regulatory changes via continuing education and earning HR qualifications like PHR SPHR certification through an exam helps the company avoid noncompliance penalties or litigation.
Uphold Company Culture
HR has influence over more than just hiring and compliance; they also help to maintain a positive company culture. Efforts may include measuring and monitoring employee satisfaction and engagement, facilitating open communication, recognizing achievements, promoting collaboration and team building, and conveying leadership messages. This focus on experience and alignment helps retain employees.
Provide Performance Management
An additional HR discipline involves coordinating employee performance evaluations on a periodic basis to assess productivity, skill levels, and growth opportunities. This includes providing forms, training for managers on delivery of appraisals and development planning, and ensuring assessments occur on schedule. Solid performance management maximizes abilities.
Offer Critical Support
Finally, HR staff should be available to support managers and employees when tricky personnel issues or conflicts arise by providing consultation, investigation assistance, mediation facilitation and appropriate follow-up. Employees will appreciate HR assistance when needed rather than feeling unsure where to turn.
Conclusion
Creating efficient processes for managing payroll, benefits, compliance, development, culture, and performance allows HR to provide immense value as a strategic business partner. Following leading practices in these areas establishes HR credibility and influence. Companies investing upfront in developing a strong HR foundation position themselves for future growth and success. This requires securing dedicated HR expertise either by building an in-house department or partnering with a professional employer organization. Either way, prioritizing people management by laying a solid HR groundwork directly affects a company’s competitive advantage.
