Human resources (HR) departments are no longer confined to tasks like recruitment, payroll management, and dismissals. They have evolved into a crucial element of organizations, responsible for maintaining a harmonious employer-employee relationship, fostering a positive work culture, facilitating employee training and development, and ensuring employee engagement and motivation.
The effectiveness of an organization heavily relies on the scalability and capabilities of its HR department. In recent years, HR practices have undergone significant advancements and enhancements, playing a pivotal role in enabling smooth business operations. HR practices encompass a range of functions, including compliance management, operational efficiency, strategic planning, and performance management. By focusing on these areas, HR practices pave the way for higher organizational success rates.
Businesses have recognized the immense value of their employees as a competitive advantage. Consequently, they have started prioritizing their workforce by paying closer attention to their skills and techniques, leading to a shift in managers’ perspectives. Managers have become more open-minded and receptive to employee input and ideas. This shift has spurred numerous research studies to explore the correlation between HR practices and overall company success.
The purpose of this blog is to provide valuable insights into the vital link between HR practices and business success. By understanding and implementing effective HR practices, organizations can harness the potential of their workforce, foster a positive work environment, and ultimately drive their overall success.
What are HR Best Practices?
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.
These practices basically provide direction to HR operations, which include hiring, benefits & wellness, morale-building, payroll, and other day-to-day responsibilities. Businesses, when utilize 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.
Importance of HR best practices
HR practices play a crucial role in the success of any organization due to their significance in several key areas.
HR practices act as a basis for creating policies within an organization. These practices provide a framework for formulating policies that govern various aspects of human resource management, such as recruitment, compensation, performance management, and employee relations. By establishing clear policies based on HR practices, organizations can ensure consistency, standardization, and adherence to legal and ethical requirements which otherwise is difficult to attain.
Apart from this, HR practices also help enhance collaboration within the organization. By implementing practices that encourage open communication, knowledge sharing, and cross-functional teamwork, HR fosters a collaborative work environment. Effective collaboration promotes synergy, innovation, and problem-solving, leading to increased productivity and efficiency.
They ensure transparency and fairness within the organization. Transparent practices, such as clear communication channels, accessible policies, and objective performance evaluation criteria, promote trust and credibility among employees. HR practices also focus on fairness by implementing unbiased recruitment and selection processes, equitable compensation and benefits structures, and consistent performance management practices. This fosters a sense of justice and equality among employees, contributing to a positive work culture and high employee morale.
What is the difference between HR activities and HR practices?
The distinction between HR activities and HR practices lies in their scope and focus. HR practices encompass the strategic elements of managing human resources within an organization. They involve developing the overall framework, vision, and mission of the HR department, aligning it with the organization’s business strategy. These practices shape the foundation of HR management and provide a strategic direction for achieving organizational goals.
HR activities, on the other hand, are the operational tasks and functions performed by HR professionals on a daily basis. They are the practical implementation of the strategies and principles defined by HR practices. HR activities include activities such as recruitment and selection, onboarding, training and development, performance management, compensation and benefits administration, employee relations, and compliance with labor laws and regulations. These activities are crucial for managing the day-to-day operations of the HR department and ensuring the smooth functioning of HR processes.
In essence, HR practices focus on the strategic development and management of the HR department as a whole, while HR activities focus on the execution of specific tasks and processes. HR practices provide the overarching vision and direction for the HR function, while HR activities involve the practical implementation of policies and procedures to support the organization’s goals and objectives.
To effectively manage human resources, organizations need to establish strong HR practices that align with their business strategy. These practices provide a framework for HR activities, ensuring that they are consistent, effective, and contribute to the overall success of the organization. The clear defined HR activities and HR practices enables HR professionals to effectively develop and implement strategies that enhance employee engagement, drive organizational performance, and create a positive work environment.
Now that we have a clear understanding of HR activities and HR best practices, we can explore the top HR best practices that organizations should consider adopting. These practices serve as guidelines to optimize HR operations and elevate the overall employee experience.
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.
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.
Companies that are making headlines for being in the top 100 companies
In today’s business landscape, human resource departments have evolved beyond their traditional roles of simply collecting applications and conducting interviews. They have become integral to the success of an organization, serving as its backbone. Here, we highlight a few leading HR departments that are at the forefront of driving organizational excellence:
Google consistently tops the charts as the best company to work for across reputable sources like Fortune, Mashable, and Glassdoor. While Google’s global presence and technological dominance are widely acknowledged, it is the company’s people that truly make it an exceptional workplace. Situated in its Mountain View, California headquarters, Google goes above and beyond to create an environment that fosters employee satisfaction and well-being.
Google’s HR efforts have set a benchmark for organizations worldwide, inspiring others to prioritize employee well-being and engagement. The company’s commitment to creating a positive work environment has contributed to its reputation as a leading employer, attracting top talent and fostering a culture of innovation and success.
Nissan stands out as one of the top companies, renowned for its fusion of Japanese manufacturing techniques and British productivity. Central to Nissan’s approach is the concept of kaizen, a philosophy that empowers employees to continuously improve their work processes. Nissan’s HR practices embrace transparency by implementing clear salary scales and granting leaders full autonomy in recruiting and assembling their teams. This level of autonomy is uncommon in the automobile industry but has proven to be a key factor in Nissan’s success in production and manufacturing.
Marks & Spencer
Marks & Spencer, a globally recognized retail brand, has achieved its success not solely through marketing efforts but also through its exceptional HR strategies. The company offers remarkable human resources experience that sets it apart. Employee engagement plays a pivotal role in Marks & Spencer’s business accomplishments. By prioritizing communication, Marks & Spencer establishes a strong foundation for success. The company is renowned for its exemplary employee relations, receiving numerous awards and accolades for its treatment of employees throughout the supply chain. At Marks & Spencer, communication is highly valued and practiced consistently, from regular conference calls among management to daily huddles among staff. Effective communication is the key to Marks & Spencer’s continued success.
Ford, the renowned car manufacturer, has been a trailblazer in hiring practices and leadership. Henry Ford, widely recognized as one of the greatest leaders in history, has left a lasting impact on Ford’s HR department. In terms of HR practices, Ford prioritizes healthy communication by focusing on data-driven decision-making rather than relying solely on emotions. The company believes in placing data and discipline at the forefront of HR processes. By following this approach, Ford cultivates a healthy work environment where objective decision-making prevails.
Ford’s commitment to HR practices that prioritize data, discipline, and healthy communication has earned it recognition as a leader in the field. People Management, a reputable source in HR, has consistently acknowledged Ford’s HR practices as exemplary.
By implementing effective strategies and policies, HR departments can attract and retain top talent, foster a positive work culture, and drive organizational success. From talent acquisition and development to performance management and employee engagement, adopting best practices ensures that the human capital of an organization is leveraged to its full potential. With a focus on continuous improvement and staying abreast of industry trends, organizations can achieve long-term growth and maintain a competitive edge. By embracing HR best practices, organizations are well-equipped to navigate the complexities of the modern workplace and create an environment where employees can thrive and contribute to the overall success of the organization.
1. What is the meaning of HR best practices?
HR best practices are a group of procedures and strategies demonstrated to improve corporate performance through learning and practice. These practices basically provide direction to HR operations, which include hiring, benefits & wellness, morale-building, payroll, and other day-to-day responsibilities.
2. What are HR practices important?
The human resource department plays a vital role in ensuring employee well-being and satisfaction. Through effective HR management, workplace practices are developed and implemented to ensure employee safety, health, and harmony. By addressing issues and providing solutions, HR minimizes risks for both the company and its employees.
3. What is best practice approach?
A best practice approach consists of actionable steps or guidelines to produce the desired results and ultimately attain the set goal. These practices act as a framework backed by evidence and research to achieve high success rates.