Why "We Don’t Have any Real HR Problems" Means you need an HR Strategy ASAP

Why “We Don’t Have any Real HR Problems” Means You Need an HR Strategy ASAP

If you can claim that your business “doesn’t have any real HR problems,” then instead of calculating how much money you’re saving on staff and technology, it’s in your best interest to heed this advice: get need an HR strategy in place ASAP.

That’s because HR isn’t just about fixing problems or, in more conversational terms, putting out fires. It’s a core part of organizational strategy that should be adding value and driving results in several key areas, including:

• Recruiting

As noted by Entrepreneur.com, HR understands where the skills gaps are in an organization.  As such, they are in the best position to strategically recruit to increase human-capital efficiency, as well as generate actionable data to streamline the onboarding process. The end results is that the right people are recruited at the right times, which avoids under-capacity risks and costs, and exploits revenue and profit opportunities.

• Performance Management

Through performance management, HR drives individual and team engagement that translates into substantial business benefits, including greater productivity, performance, quality, and customer satisfaction.

At the same time, effective performance management enhances employee loyalty, which an essential — and profitable — asset when organizations endure difficult economic conditions (e.g. sluggish demand, intense competition, etc. Indeed, Gallup researchers found that businesses with strong employee engagement emerge from recessions faster and more successfully than businesses with weak employee engagement.

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• Compliance

Many business owners — particularly those in smaller firms — unhappily discover the compliance landscape is more like a minefield; because laws, rules, regulations and best practices are constantly shifting. Having a strong, strategic HR function makes the difference between getting blindsided vs. remaining protected. As noted by Corporate Compliance Insights:

The human resources function is at the center of most employers’ efforts to identify, hire and retain the people the organization needs to execute its strategy and achieve its goals.  But the HR function is a key player within the organization’s compliance structure as well. There are numerous laws and regulations governing the employment relationship that HR professionals must understand and navigate in order to help ensure their organizations avoid costly fines and other penalties, including the potential harm to the organization’s reputation.

Health & Safety

Another aspect of HR strategy that can be overlooked and neglected — that is, until it erupts and turns into an urgent problem — is understanding and enforcing appropriate occupational health and safety practices. As HRReporter.com points out, HR’s role in this capacity can include:

• Facilitating a meaningful occupational health and safety-related dialogue between management and employees.
• Mediating disagreements to ideally resolve them to the satisfaction of all parties.
• Supporting and having membership in the health and safety committee.
• Communicating the organization’s commitment to occupational health and safety.
• Training managers and employees on safe work practices.

Forecasting

While an effective HR strategy supports a range current benefits, as noted by HRCouncil.ca it also plays a critical role in shaping long-term vision by addressing issues like:

• What jobs will need to be filled?
• What skill sets will people need?
• How do we expect the economy to affect our ability to attract new employees?
• How will anticipated technological or cultural shifts impact the way we work and the skilled labour we need?
• How is our community changing or expected to change in the near future?

Learn More

At PIVOTAL, we help businesses develop their customized HR strategy so they exploit untapped value and achieve measurable improvements across several metrics and KPIs – because THAT is the purpose of HR; and not just “putting out fires.” To learn more, contact us today and schedule your free consultation.