Human Resource Management (HRM) is a complex, multifaceted field. As a result, it isn't easy to know where to start and what strategies are best for your company.
To help you get started on the right foot, let's go over HRM basics - namely, the three pillars of HRM: strategic planning, workforce development, and performance management. These three pillars will serve as the foundation for all other aspects of your human resource department.
What is HRM?
HRM is a somewhat vague term that can refer to many different practices and processes. HRM is the department in any organization responsible for maintaining and developing the workforce. It’s also accountable for recruiting, selecting, retaining employees, planning, and managing employee compensation and benefits.
It's important to remember that HRM isn't just about sustaining your existing workforce. Most importantly, it's about setting up your organization for future success.
The Three Pillars of Human Resource Management:
Strategic Planning
This practice refers to mapping out what you want from your employees in the short-term (next 1-2 years) and long-term (3+ years). The process often begins with the company's mission statement.
How do you want your employees to contribute to the overall success of your business? Are there specific skills or methods you'd like to see to help you accomplish this goal in the coming years?
Once you've got a rough draft of what you're looking for, it's time to figure out where you'll find it. This process is called "recruitment" and refers to hiring new employees and ensuring that current employees' skill sets align with what you need from them in the future.
Once a recruitment has been successful, it's time to choose which applicants have demonstrated a capability and commitment to working towards company goals.
The last step of strategic planning is performance management. It is a continuous process that ensures your employees fulfill their promises to the company and themselves. In addition, you will teach them new skills when necessary and assess their abilities so that you can be sure you're offering them opportunities that best suit their interests and skills.
Workforce Development
Refers to building up your teams by investing in current employees' careers. It's important because it ensures that your business has access to skilled workers even if attrition happens and increases overall productivity.
An integral part of this practice is internal mobility – promoting internal candidates who can fulfill new responsibilities without significant training or adjustment time.
This part isn't just about rewarding top performers; it's about finding out what kinds of opportunities motivate each team member and ensuring that they're constantly growing beneficially to the company.
Creating an effective performance management structure is crucial for this practice, as your employees need to know what they can accomplish within their positions if they want to feel satisfied with their work.
Performance Management
This pillar is the final factor in determining how successful your workforce development plan will be. Performance management refers to evaluating employee performance regularly and offering training and resources when applicable.
It also involves promoting or transferring workers, removing those who continually fail to measure up, and offering rewards such as bonuses or promotions when they deserve.
While all three pillars are essential for HRM, this one is critical. By creating an evaluation system and rewarding those who excel, you're ensuring that your business has the best employees possible.
HRM Is All-Encompassing
When we talk about HRM, we're talking about something much bigger than just filling open positions and giving existing employees a pat on the back now and then.
While it can feel overwhelming, especially if this isn't a part of your company culture yet, HRM practices offer incredible benefits, including:
Lowering turnover rates and improved employee morale,
Better recruitment results, higher productivity levels, the ability to adapt quickly to change, and more.
While setting up an effective HRM strategy may seem daunting, the important thing is to take the first step. Whether you want to work with a professional in this area or have a list of helpful resources handy, remember that having a fantastic team is worth it in the long run.
Why Is Employee Motivation Important?
Motivated employees can steer a company to new heights of development in many ways:
Greater Company Output
In any line of work, productivity is the name of the game – but how can you encourage your workers to be more productive? One way is by motivating them to improve their performance daily.
Every company should already have a mission statement that outlines its overall goals and short-term objectives that provide tasks explicitly related to achieving success according to its plans.
This strategy will motivate your employees to do their best, resulting in better output for your business overall.
Better Applicant Screening
When a workforce is satisfied and motivated to improve, they naturally treat each new task as an exciting challenge rather than something mundane.
Because of this, you can expect them to always be on their A-game when interviewing potential candidates—giving you improved quality across the board when hiring new workers.
Get Top-Notch HRM System Today
An optimally functioning HRM system requires the services of a professional. Therefore, every organization should ensure they have the right expertise when putting this system in place.
If you want to learn more about HRM in your business, you can reach us at archarina.io. We will be more than happy to answer any questions you might have to discover if an HRM solution will improve your organization.
