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8 Steps Guide to HR Best Practices

17 min read

HRs are the backbone of the organization. HRs are now involved with more than just recruiting, dismissing, and managing payroll; it is also concerned with maintaining a balance between the employer and the employee, fostering a great work culture, employee training and development, also entails engaging and motivating people.  

The complete functionality of an organization depends on the scalability of the human resources department. Over the past few years, HR has substantially developed and improved. HR practices have played a vital role in providing a pathway that helps them run the business swiftly.  

Human resources are where compliances, operations, strategic planning, and performance management evolve which makes a path for great leap in the organizational success rate. 

Businesses have understood the power of their people who can provide an edge over their competitors. And by paying close attention to these employees and their techniques and skills, it can help them succeed.

It has even led to a shift in managers’ perception from being stern to more open-minded. This has spawned many research studies to establish a link between HR practices and company success. 

So therefore, this guide aims to provide insights into the connection between HR practices and business success 

Through this article, you will dig into this correlation, which can help you gain a better understanding of HR practices and its impact on the business: 

What is the difference between HR activities and HR practices? 

How often do we get confused with HR Activities and HR Practices? HR practices and activities are crucial while entailing ways to increase business productivity and performance.  

Human resource practices should be in sync with the business strategy and serve as a framework for managing the organization’s workforce. Setting the HR department’s vision and mission is a part of the practices. Therefore, these practices are concerned with an HR’s strategic development.  

But HR activities are concerned with helping them implement the strategies developed under the vision of HR practices.  

In simple terms, Human Resources practices mean developing, structuring, and managing the department while Human resource activities refer to the day-to-day functions of an HR department. 

Recommended Read:- 35+ Best HR Books to Read in 2022

HR Practices Roots for Business Success Infographics

What do HR best practices mean? 

HR best practices are a group of procedures and strategies demonstrated to improve corporate performance through learning and practice. Internal standards are established by an organization to simplify operations and achieve desired outcomes in all major industries.  

The practices direct HR departments’ operations, which include hiring, benefits & wellness, morale-building, payroll, and other day-to-day responsibilities. Businesses, when utilizes these HR strategies more innovatively to manage their personnel, can expect to see improved operational performance as a result. 

Employee retention can be improved by ensuring that employees are treated properly and that their professional development is respected. Employees that are loyal and motivated contribute to a company’s success. 

Here are 8 HR practices that can boost the productivity and performance of an employee: 

8 Steps of HR Best Practices

H.O.T- (Hiring Orientation and Training)

You should ensure that the individual assigned to work on the project has the tools and resources necessary to do it successfully. Understanding your personnel’s skills, limitations, and preferences is vital to be an effective leader. 

WUT is what you need—confused already? Well, WUT means Watch, Understand, and Try. Take this practical example “Observe me do it, then let’s do it collectively, and let me see you give it a shot.”

Implementing it can bring out higher capabilities in your employees as it helps push them to their revolutionary potential, which will boost your organization’s outcome.

One of the companies that follow this practice perfectly is Rolls-Royce. Rolls-Royce has long been associated with high-quality training and apprenticeships

When we hear the name of a corporation, we usually think of quality. Through its supply chain and unique business practices, the organization has excelled in producing that level of quality.

And this is the outcome of Rolls-Royce HR activities that have not only created a positive work environment but also increased team spirit. The company believes that employees succeed when they work with pride.

Hiring the right prospects and directing them with flawless training shows how determined they are towards delivering fruitful outcomes.

Smoothening the track between Engagement and Communication.

Communication is the key to breaking confusion and achieving success. The hiring team’s onboarding engagement process is crucial for a good candidate experience.

Communication with prospects reflects your employment brand more than it helps you make a smart hire.
Provide proper information about the objectives so the employees and managers can implement their unique skills to reach the goal.

Avoid trying to micromanage the tasks and responsibilities.

HR managers and specialists should be more available to newly joined employees at the initial stages of their journey as they would not have much knowledge about the company’s goals and objectives.

Also, provide spotlight to the helpdesk, which is one of the main components that can help the employees not to worry more about waiting for the HRs to resolve their issues and clarify their queries.

Innovation, teamwork, and exchanging ideas and experiences are all aided by fair and inclusive interaction. From onboarding to exit interviews, employee engagement is critical.

Ford is a firm today that is known for its HR innovation, which is based on a highly disciplined culture, excellent training opportunities, and strong and consistent procedures.

The organization focuses on establishing good communication by relying on statistics and understanding employee emotions when it comes to HR practices. 

Balancing performance targets with organization and employee needs.

All companies’ strategic development and implementation must include HR professionals. HR should also pave the way for honest and forthright employee engagement between employer and employee. Determine which areas require immediate attention.   

Before making recommendations, be careful to analyze internal processes and managerial abilities while examining troublesome areas in the firm.

Aligning the company’s goals and employee needs will lead to increased employee commitment as well as managers’ guidance for smooth functioning. In addition, people who feel appreciated and have a homely feeling at the company will desire to contribute and go above and beyond.   

Employees are critical to any company’s success. You can start strategizing and implementing effective HR practices to boost business performance and staff retention after a clear overview.   

Shell’s high-profile strategic HR department plays a vital role in the company’s strategy creation and enforcement through developing worldwide management methods. While most international projects fail, Shell is an exception. 

Shell has established long-term strategic connections with all of its decision-makers, including its employees, who are critical resources. Shell recognizes that its employees are critical to the company’s success. 

Additionally, while developing a career plan, HR experts always function as mentors for their workers, assisting them in discovering their strengths and providing knowledge and insights.

The board of directors and its employee committee use excellent performance management to ensure the successful adoption of new strategies, directions, and practices. 

Encouraging a democratic organization and policies 

When planning your compliance strategy, keep in mind that:  

  • The right to work 
  • The right to equitable compensation 
  • The right to safe working conditions and 
  • The right to necessary benefits comes under critical consideration. 

HR Policy Planning Infographics

Organizational policies may appear to be all about routine and merely following regulations on the outside. Still, delving deeper reveals that your policies have a significant impact on employee experiences and the workplace.

For example, you can create a pleasant work environment where every employee feels secure, comfortable, and appreciated and is ready to contribute to your organization by using compliance as an employee-centric tool.

And having well-defined policies can lead to a democratic organization.   

Employees should continue to be recognized as responsible partners of a business under the democratic system and should be permitted to participate in the decision-making process through several techniques.

When employees have the freedom of expression and the ability to voice their opinions, it will provide a strong foundation for building a company with profound outcomes.

All companies worldwide should follow this practice in their day-to-day HR activities.

It is pretty much applicable to all companies as there is no success without the ground rules and some adequate approaches to maintain their integrity. 

Ensuring Personnel perks

Employee perks are also part of a person’s remuneration package. Employees are more likely to remain and work for your business if you provide the finest perks.

One of the most significant employee perks is health insurance, providing it ensures them that the organization values their wellbeing. Therefore, this benefits the individual which in turn increases retention and employee loyalty towards the organization.

In addition, employees should be allowed to take vacations for a set amount of time throughout their careers, enabling employees to take a break and feel re-energized with these tremendous perks.

Finally, the most appreciable benefit every employee craves to have in their future is the retirement plan, which ensures their financial security once they leave employment.   

Other benefits, such as paid streaming services, generous paid parental leave, a pet-friendly workplace, gym memberships or discounts, and in-office entertainment such as ping-pong tables, X-Box, and table tennis, keep employees attached to the company for years without a second thought of switching and increase company productivity as well.  

LinkedIn’s motto is “work hard, play hard.” To thank employees for their efforts and loyalty to the company, the HR department throws all company parties with live music and a nightclub atmosphere.

Employees are encouraged to invent systems that disrupt the existing norm through team dynamics. In addition, the organization hosts an InDay once a month, during which the staff leaves aside daily duties to pursue innovative ideas. 

Keeping track of employee performance

Establish an environment and culture in which individuals feel empowered to make choices, discuss issues, and take the measures necessary to finish the task.

When your employees have completed the job you allotted to them, double-check to be sure they have nailed it. Perform continuous evaluation and make sure that you provide constructive feedback.

This motivates them to improvise and feel good at the same time.

These are a few things that need focus that leads to avoid depriving them of their confidence in doing better and never having the opportunity to make improvements while evaluating their progress.  

Even if employees understand their positions and self-review them, everyone benefits from regular performance analysis. Managers can see which sections of the organization are performing well and will strengthen them.

This HR best practice includes putting people on the same path, collaborating for a mutual purpose, and receiving feedback along the journey.  

In 2012, Adobe ditched stack ranking and yearly performance evaluations. Instead, a frequent check-in approach was adopted for managers and teams to discuss their objectives and evaluate their performance regularly.

Adobe claims to have seen improved outcomes since they started using check-in. 

Offering a better remuneration

A complete incentives package may assist in demonstrating to employees that the business understands and respects their emotional well-being and contributions as professionals. Increasing their remuneration package does not usually imply changing existing figures.   

You might also offer additional vacation days, gift cards, corporate discounts, stock grants, or bonuses as remuneration. First and foremost, if you recruit the right personnel, you should reward them more than average.

You would prefer to retaining these employees and offer better opportunities for growth as they are significant contributors to organizational success.  

Compensation is a critical component of effective succession planning.  

These are the best resources to gain employee trust with respect to the company’s long-term goals and resulting in retaining high-potential employees. 

According to the Sunday Times, Boots excel in employing supportive managers, developing colleague relations, encouraging a stress-free work environment, and displaying generosity through outreach initiatives.

Paving way for a fair discharge

The most critical point to remember when terminating an employee is to offer them an opportunity to amend their conduct.

Except in exceptional cases where instant termination is necessary, most employees should get a chance to improve their situation, and this should begin with a regular performance assessment. 

It will always be unpleasant for the individuals concerned; this is perhaps the most challenging area to apply HR best practices.

Learning from colleagues who are leaving is one way to strategize the next steps, recognizing which topics to avoid is another way to build better beginnings. Issues that might lead to termination should always get addressed before they get out of hand.


In today’s corporate environment, we cannot overstate the importance of HR practices. The eight practices listed above will inspire you and help create ideas for making your workplace the best it can be this year.  

These changes and obligations, especially for HR professionals, may be burdensome. But they always make it possible to remain as the roots. 

Hence, when a firm focuses on these practices and implements the concepts, it helps you fuel increase employee retention and employee loyalty which will in turn help scale the business.  

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    Meet the author

    Keka Editorial Team

    A bunch of inspired, creative and ambitious youngsters- that’s Keka’s editorial team for you. We have a thirst to learn new subjects and curate diverse pieces for our readers. Our deep understanding and knowledge of Human Resources has enabled us to answer almost every question pertaining to this department. If not seen finding ways to simplify the HR world, they can be found striking conversations with anyone and everyone , petting dogs, obsessing over gadgets, or baking cakes.


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