HR has evolved significantly in recent decades and continues to grow. Human resource core best practices continue to be followed by HR professionals. What are these practices, and why do they matter? We’ll cover the seven best practices in HR. These practices are essential to effective HR management.
Human Resource best practices
What are the best practices in Human Resource Management?
Human Resources Management best practices consist of a collection of processes and actions which are universally effective. There are two schools in HRM research on managing people. First, there are the best practices.
According to the best-fit school, HR policies must be aligned with business strategies to create value. HR must focus on the needs of both the organization and its employees.
According to the best practices school, several HR processes can be applied universally and lead to better business performance. Its proponents claim that specific HR bundles can help companies achieve a competitive edge, regardless of their organizational setting or industry. ( Redman & Wilkinson 2009).
We will refrain from engaging in a lengthy scientific debate about the pros and cons of each method. Truth often lies in the middle of these discussions.
The HR Strategy, and the following HR activities, should align with the organization’s strategy for maximum efficiency (a.k.a. strive for best fit). This alignment is also known as Strategic Human Resource Management in literature.
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Several best practices have also been proven to improve performance. HR can add significant value to business goals and the organization if they execute these practices correctly. Implement best practices).
The best practices can be applied to different HR departments, such as learning and development and performance management.
Security for employees
First, the best Human Resource practice is to ensure employment security. Work is important because it is stable and predictable in an often unpredictable world. The number one reason people go to work is to have an employer that allows them to support themselves and their families.
Between the employee and employer, there is a formal contract (“labor for money”) and a non-formal contract (“you do extra work, and we will take care of you”). Employees can go home and take care of themselves and their families after work with the security provided by employment. The concept of security is fundamental and supports almost all HR activities.
You can see the ripple effect in an organization when employment security is threatened. For example, if there is a restructuring or a layoff.
Organizations also benefit from employment security because it helps retain their employees. It’s often the organization that pays for the loss of employees. These organizations are the ones that have invested in the selection and training of these employees. It is an expensive process. An organization needs to work to retain its employees so they can stay and work for a competitor.
A survey conducted in 2020 found that Job Security is the third-most important factor to employees. In the UK, 28% of 1100 professionals surveyed cited job security as essential. Globally, job security is a critical factor in HRM.
Information is easily accessible for those who need it
Information sharing is essential. Many large companies need help with this: how do they keep track of the people who know what so that they can direct their questions to the right person?
Pfeffer cites two reasons for the importance of information sharing.
First, a culture that trusts people creates an open communication culture. Employees are genuinely involved in the business. It also discourages negative, informal talk and gossip.
Second, to get your employees to share ideas, you need them to be well-informed about what is happening within the company.
In attitude surveys, employees often mention that they value being informed about their company. They also like the idea of having an opportunity to influence and contribute to decisions that affect their work life.
Synergies between HR best practices: Bundles
Bundles are created when these best practices combine. Bundles create synergies. Human Resource Management is a way to create a competitive edge for an organization.
An example. You will only gain from securing employment if you have highly-performing employees. What’s the point of keeping them if they aren’t performing well? The employment security best practices and selective hiring will provide more value.
Selective hiring, extensive training, and contingent compensation are all part of the same process. Select employees who have growth potential. Invest in their learning and development. Reward them when they perform well.
Third, the sharing of information and reducing status differences are examples. You can create a culture where employees are encouraged to make suggestions and improve the company by encouraging open communication.
Effective HRM, by leveraging these bundles, can add enormous value to your business and help you achieve your goals.
Human Resource Management Best Practices: A Reality Check
Kurt Lewin believes that a good theory is the most practical thing you can have. Each approach, however, has its drawbacks. Some of these best practices are in contradiction with each other.
Take employment security. In theory, this practice is excellent, but companies increasingly work with flexible contractors. These contractors do not have the same security as traditional employees, but they provide more flexibility to the company. Marchington (2000) states, “Employment security is offered only when it’s convenient for the employer.”
Training is another example. Many organizations have adopted the principle of extensive training. But delivering training alone does not improve a company’s position in the market. In many organizations, the way formal training takes place can raise several issues:
The formal training program may focus on skills that do not match an employee’s work.
The training budget is not based on business needs but rather the surplus budget.
It’s more important to be trained than to understand the impact of training.
The Kirkpatrick-Philips training model helps to measure the effectiveness of training. This model can determine whether the movement has a measurable effect on performance and whether it provides a positive ROI (return on investment).
Selective hiring is a final example. According to this best practice, a company will perform better if it consistently hires top performers. It is nearly impossible always to hire top performers. It is simple: You’ll gain a competitive advantage by always hiring better candidates than your competitors.