HR Best Practices: Key Insights

Introduction

• HR is evolving from an administrative role to a strategic hub crucial for business success.
• During the pandemic, 87% of C-suite executives credited HR departments for accelerating change.
• However, only 52% believe this strategic position of HR will last.

Importance of HR Best Practices

• HR best practices are universal processes and actions that enhance Human Resource Management.
• Jeffrey Pfeffer’s works emphasize that these practices can lead to increased company profits.

7 Key HR Best Practices

1. Providing Security to Employees

• Job security is a primary concern for employees, ranking third after salary and location.
• It creates a formal (labor for money) and informal contract (extra effort for care) between employees and employers.
• Employment security benefits organizations through better retention and lower turnover costs.

2. Selective Hiring

• Hiring employees who add value is critical; performance difference between average and high performers can be 400%.
• Use recruitment tools like personality assessments and reference checks to evaluate:
  • Ability: Technical and soft skills.
  • Trainability: Potential for skill improvement.
  • Commitment: Willingness to stay and contribute to the organization.

3. Self-managed and Effective Teams

• High-performance teams are vital for success.
• Key traits: Cognitive diversity (generating varied ideas) and psychological safety (comfortable sharing ideas).
• HR can support teamwork by:
  • Measuring team performance.
  • Rewarding team excellence.
  • Advising management on tools for better teamwork.

4. Fair and Performance-based Compensation

• Competitive pay is crucial for retaining top talent, especially when 69% of employers struggle to fill vacancies.
• Compensation should be above average and include financial pay and employee benefits.

5. Training in Relevant Skills

• Continuous training is essential, especially for adapting to rapid technological change and the need for soft skills.
• Training formats include:
  • In-person.
  • Online.
  • On-the-job training.
• Continuous updates and improvements in training are necessary.

6. Creating Flexible Work Opportunities

• Employee expectations regarding work flexibility have changed post-pandemic.
• To accommodate various preferences:
  • Address inequalities in work flexibility by redesigning jobs.
  • Invest in IT for secure remote work.
  • Promote empathetic and agile management practices.

7. Making Information Easily Accessible

• Open communication fosters a culture of trust and engagement in the business.
• HR activities to enhance communication:
  • Create diverse sub-groups.
  • Produce internal newsletters.
  • Facilitate information sharing sessions across departments.

Conclusion

• Implementing these 7 HR best practices is key to effective HR management and enhancing business performance.
• Encourage sharing additional best practices in the comments.