One of the best international practice in human resource management is, how much value you accord to your employees that make them want to stay in your organization. HR plays a vital part in the success of a business, so is an important department in any organization. It is necessary to state clearly the best HR practice acceptable to most organizations.
WHAT IS THE BEST HUMAN RESOURCE PRACTICE?
It is the idea that there are universal HR principles that provide companies with optimal business performance, regardless of which organization or industry they are applied to or better still it’s a plan, principle, or idea that is accepted universally by companies offering them with the best business execution. This is irrespective of which company, industry, or niche is it applied to.
As a company, you must put a structure in place to support the resource department to meet the needs of employees that are geared toward business growth. Any HR aims to work towards the satisfaction of the employee and the general well-being of everyone at the organization.
Best human resource management practices are just the process and actions that work globally. But, there are two opinions as to how to best manage people, the first one is the best fit and the second is the best practice. The first point means to add value, human resource policies should align with the business strategy. HR should focus more on both the needs of the organization and that of its employees.
The second point, argues that, to have a set of HR of universal human resource process to lead a superior business performance. According to its proponents, there are certain bundles of HR activities that support the companies in reaching a competitive advantage regardless of the company settings.
1. Providing security to employees
As an employer who enables employees to provide for themselves and their families. One of the most important human resource best practices is employment security for every employee under your organization. Life can be very unpredictable sometimes, so a stable job factor is very important to most people.
There is both a formal contract and an informal contract between the employee and the employer. Employment security enables employees to go home after work and provide for themselves and their families.
This concept of security is essential and underpins almost everything HR does.
When this employment security is threatened, for example when there is a restructuring or a layoff, you see this immediately ripple through the organization.
Employment security also benefits organizations because it helps them retain their people. When employees are laid off, for example, it’s usually the organization that pays the price. They are the ones who have invested in the selection, training, and development of these employees. This is a costly process. If the organization doesn’t work on retaining its people, they are more likely to leave and work for the competition.
2. Selective hiring: Hiring the right people
Organizations bring in employees to add value, some companies do their utmost best to hire exceptional people because they want to add the most value to the business. Research shows that the difference in performance between an average performer and a high performer can be as high. This holds for different industries and job types.
Bringing in the right people is, therefore, a key to building a competitive advantage, in today’s digital world, there are a lot of different recruitment tools we can use to make the right selection. More and more companies vigorously keep track of their recruitment metrics to see how well they are doing in this regard. Commonly used selection instruments are structured and unstructured interviews, IQ tests, personality assessments, work tests, peer assessments, and reference checks. These (pre-employment) assessments are used to uncover three key candidate characteristics.
* Trainability:
Can we train this person to improve his/her skills? Has the person got the aptitude to learn and keep developing?
* Commitment:
Will the person commit to his/her work and the organization? Will we be able to retain this person once he/she is up to speed and fully productive?
* Ability:
Is the person able to do the job? Does the person have the right technical and soft skills? Is the person smart enough to do the job well?
3. Self-managed and effective teams
Teamwork is very critical in achieving goals. High-performance teams are crucial for any company when it comes to achieving success and growth. Teams provide value because they consist of people who are and think differently but are working towards a common goal. This means that different ideas are generated to help achieve the goal. These ideas are then processed and combined, resulting in the best ones being selected.
The best teams are cognitively diverse and psychologically safe. This means that team members can generate ideas that are different while feeling comfortable bringing these up and discussing them. Creating and nurturing high-performance teams is one of HR’s key responsibilities; Individual personality assessments are also often used as they help to understand how other team members think and behave. Understanding these processes is one of the main responsibilities of a manager.
4. Training in relevant skills
One of the best HR practice state that, companies should invest heavily in training and budgets for their employees. After recruiting the best people, you need to ensure that they remain the frontrunners in their respective fields. This has become even more relevant today as the rate at which technology is developing is growing exponentially. This is where learning and development come in.
Learning has become a way to stay innovative, grow faster, and sustain a competitive advantage. Employers increasingly invest in skills-specific forms of training. Learning is also becoming increasingly important for the latest generations. The next generation of workers is actively looking for development opportunities and sees these as a way to grow in their profession. Not offering these opportunities is related to higher levels of employee turnover.
5. Fair and performance-based compensation
Compensation is a major part of human resource best practices all over the world. This has everything to do with benefits and compensation for employees.
First of all, if you hire the right people, you want to compensate them above average. These are the people that will add the most value to your company so you want to retain them and pay them fairly. This is an example that shows how different best practices work together to provide more value than they would alone, in this case, selective hiring, contingent compensation, and employment security.
Paying people above the norm also has many potential disadvantages. For instance, it discourages bad employees to leave. However, if you’re consistently hiring world-class performers, an above-average compensation is a must.
This sort of compensation can take the form of financial (base) pay and employee benefits.
Secondly, you want to couple individual rewards with the different types of contributions that employees make. These are performance-related rewards.
By coupling organizational performance outcomes with individual rewards the individual is incentivized to maximize this outcome. It also creates a sense of ownership for the employee.
Think of profit sharing, shared ownership, or stock options for instance. These are great ways to create employee commitment to the company’s long-term vision and retain high potentials. Compensation is a key element for successful talent management.
6. Making information easily accessible to those who need it
Information sharing is essential. This is an area where a lot of large companies struggle: How do you keep track of who knows what, so you know where to go with your questions?
There are two reasons why information sharing is so important.
Firstly, open communication about strategy, financials, and operations creates a culture in which people feel they are trusted. It truly involves employees in the business. As an additional effect, it discourages hear-say and negative informal chats.
Secondly, if you want your people to share their ideas, they need to have an informed understanding of what’s going on in the business.
Being informed about the business is also something that employees often mention as something they find important, as well as having a chance to contribute to and influence decisions affecting their working life.
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