Human resource (HR) management is more than just creating a pleasant environment where employees can complete their work contently and safely. For a company to run smoothly and achieve its aims, it must manage different areas of work demanding specialised team members for each department. The task of HR managers is to ensure the right staff is assigned to the right position to assist in achieving a company’s goals. An HR management system that works well leads to a more engaged, happy, and productive workforce.
HR management involves planning, executing, and monitoring several activities including recruitment, training, performance reviews and development, payroll, and benefits. An effective HR plan is essential for all kinds of businesses as it has a big effect on how well a company achieves its goals and objectives in each department.
If you are looking to set up an HR system for a new business or researching ways to improve an existing company’s HR processes, here are a few basics and fixes to help you out.
Use an automated online payroll system
One fast way for a business to upset and lose the trust of its employees is to make payroll errors or late payments. To prevent this some businesses use an automated payroll system like the one at Zenefits to set up a payment schedule. In addition, the use of payroll software saves accountants time as data can be collected and processed quickly and in one place.
Automated payroll systems can solve problems with tracking payments to assure they are correct and on time, furthermore, they can assist with tax compliance by automating tax filings and payments to reduce the risk of getting any late penalties.
The main advantage of an automated payroll system is that it increases the productivity of finance and HR departments by speeding up data collection, filing, and processing of payments. Additionally, the systems are all digital so detailed records are easy to archive.
Create and develop an HR strategy
It is a smart move for any business to formulate a detailed process-based HR management strategy that is aligned to a company’s needs and goals. The purpose of implementing an HR strategy is to tie the management of human resources to the broader aims and objectives of a business.
When considering an HR strategy, you should identify what success looks like in each key area as well as how the strategy could affect the existing culture, employees, organisation, and systems in a company.
When employees are well-informed of their duties, roles and the objectives of their department, it is more likely that the overall aims and objectives of a company will be achieved.
Performance management provides both employers and staff with a road map to achieving individual, department, project, and company-wide goals. The advantages of utilising performance management are greater morale and motivation, consistency and collaboration between departments, and decreased staff turnover.
There is no one-size-fits-all when implementing a performance management system and plans should be tailored to the specific needs of a business. However, five fundamental stages of performance management that should be included in a company’s performance management plan are:
- Onboarding: New hires should follow a step-by-step onboarding program supported with relevant documentation, initial training, and need-to-know information.
- Training and development: Although training is usually most rigorous for new hires, opportunities for learning new skills and honing existing abilities should be regularly offered to existing staff. A smart training plan will ensure staff always have the capabilities to complete tasks competently and on time.
- Feedback: For HR managers it is critical to give feedback to employees whilst also listening to the concerns of staff, so clear directions or support can be given on how to fix an issue.
- Corrective action: Even though many companies will have periodic performance reviews, managers should prevent larger issues by conversing with employees regularly. Liaising with staff provides the opportunity for early corrective action to fix issues and improve performances.
- Termination: Of course, this usually isn’t necessary and can be avoided by implementing the previous steps and acting early.
Make a staff handbook
A vital part of performance management is developing a detailed, informative, and easy-to-read employee handbook to communicate the duties, expectations, company goals, and information about guidelines and regulations. An employee handbook and the signed agreements within it provide both the company and its employees with reference points for performance reviews or settling disputes. Generally, it is good practice for HR managers to update employee handbooks at least annually.
Poor or non-existent HR management strategies and systems can lead to huge impacts on productivity and workplace culture, however, there are several fixes, like those detailed previously in this article, that you can apply at a company to make it run more smoothly.
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