HR (Human Resources) can be defined in many ways, but in the context of business, we can say that HR is the strategic and effective management of your most profitable resource: people.
A strategy is a careful plan or method that is implemented to ensure success and maximum results! To be strategic, your human resources policy must be aligned with your business strategy. Therefore, you need to understand your business goals and consider the impact they have on your employees.
The role of Human Resources has traditionally been supportive, that is, to carry out payroll and administrative functions and maintain positive relations with employees. Today, human resources personnel have expanded their role to include:
Legal compliance: Ensuring that the company complies with legal requirements, for example, labor law, health and safety.
Transaction activities, that is, dealing with financial matters such as wages and benefits.
Transformation activities, that is, introducing changes that contribute to a good work culture, for example, induction, training.
Measurement: put systems in place that show a tangible return on investment in people.
HR’s role is also to demonstrate to your business why your employees are your most profitable resource. For example, employees:
* Represent your business
* Bring knowledge, skills and experience to your business that are intangible but also invaluable
* Create customer satisfaction
Talented employees ensure competitive success, and competitive success ensures profit growth.
While these principles apply to all companies, it is essential that each company identify its own specific HR measures to monitor the impact of employees and, indeed, employee policies. A good human resources policy:
* Minimizes costs associated with high employee turnover
* Improve the retention of skills, knowledge, motivation and morale, which over time impact productivity
* Give employees job security and money in their pockets
* Provide opportunities for employees – to learn new skills and gain more knowledge
Employees are an important part of your competitive advantage—they can make or break your business in the way you interact with your customers, consumers, and the general public.
Employees are also the reputation of your company.