How Will Changes in Human Resource Management Affect My Business?

April 10, 2018

In today’s rapidly changing business environment, Human Resource Management must also evolve to be effective. Understanding how and why HR needs to transform can help business owners implement the changes they need to stay ahead.

Traditional HR Roles And Why They No Longer Work

Initially, the role of HR professionals consisted largely of dealing with administrative matters relating to personnel relations: payroll, employee disputes and complaints, benefits, and workplace policies and procedures.

Over time, Human Resource Management has gained somewhat of a negative reputation due to widespread perceptions that it did not handle difficult situations or employee complaints effectively or fairly.

This perception often leads employees to go to some lengths to avoid involving HR; as a result, many situations HR was designed to handle end up unresolved, often to the detriment of employee morale and productivity.

Another negative corollary of HR’s traditional image is the perception, held by many executives and employees, that the department exists apart from the general organizational goals.

Because many HR departments end up ineffective at what should be their major contribution, i.e. personnel management, employees increasingly view them as mandatory appendages that do not actually add real value.

New Approaches to Human Resource Management Functions

The above notwithstanding, your HR department does not have to remain a dead weight. In 2018, businesses are turning to an updated take on core HR functions.

1.) Increased Involvement

Serving as an intermediary between executives and employees, HR has the unique opportunity to form a connection between the company’s goals and its employees.

Today’s trend is to increase HR’s involvement in discussion and development of business objective.

A thorough understanding of goals and the necessary strategic approaches will help HR professionals determine how to manage the company’s workforce in a way that most effectively promotes these goals.

2.) Listening to Employees

In contrast to the traditional view of Human Resource Management as an unconditional defender of management, 2018’s HR department adopts a stance that is more receptive to employee concerns.

Taking employee satisfaction seriously can create a more productive atmosphere and raise productivity.

This can be especially important in the case of customer-facing employees, who often find it easier to maintain a pleasant demeanor and go the extra mile to ensure satisfaction when they feel secure in a supportive workplace.

3.) Promoting Necessary Change

A third important change on the horizon is the increased willingness of businesses to seek and receive HR input as to necessary transformations in the workplace.

Rather than simply receiving instructions from management to implement, HR professionals add value by speaking up about changes that could help employees work more effectively.

Conversely, informed HR professionals can also bring employees on board with management-initiated changes.

How Business Owners Can Embrace Change

The three major changes in how today’s HR operates can help business owners make their companies more profitable.

However, even positive changes can be hard to make. Here are some steps you can take to make your new and improved HR work for you.

 

1.) Focus on executive functions

 

Today, you can outsource many traditional HR administrative responsibilities (such as payroll) to technology, which often does it faster and better.

This will free up your HR professionals to participate more fully in the executive side of their responsibilities.

 

2.) Bring them on board

 

As management professionals, your HR people should participate in strategic development and goal-setting.

Keeping them up-to-date helps them develop more effective approaches to maintaining a productive workplace.

 

3.) Use their expertise

 

As close observers of workplace dynamics, HR professionals are uniquely positioned to identify factors that affect productivity.

Get their input on what they think can be done to help employees be more punctual, motivated, and efficient.

 

4.) Implement employee management programs

 

Your Human Resources Management department should develop organized initiatives to improve the workplace atmosphere and/or address issues.

Many organizations put in place employee assistance programs, training opportunities and incentive structures.

Prioritizing Business Needs

As a business owner, you already regularly think about how you might change operations in response to transformations in technology, customer base, and other important factors.

Similarly, you can improve your company’s profitability by considering the best ways to integrate the new changes in HR approaches into your current organizational model.

The optimal strategy may vary based on your company’s size, your industry and any specific problems your business faces.

Adopting these changes may mean looking for additional HR personnel or implementing a training program for your current professionals.

As the new paradigm means deeper HR involvement in organizational strategy, you now need professionals who understand your business.

You will also need to consider your options in terms of costs and feasibility when it comes to implementing employee satisfaction programs. Some companies provide donuts on Fridays, while others offer high-level bonuses.

You know your budget, your employees and your company. You need your HR personnel to have the same knowledge and a real understanding of the workplace environment.

An Updated HR Can Increase Production

Leading the way when it comes to HR changes can help you get the most out of your HR department. As workplace experts, they can develop ways to make it easy for employees to succeed. By putting your HR into a leadership role, you can decrease the likelihood of employee complaints and other issues that were the traditional HR’s job to handle.

Resources

If you think that putting all of these changes in place may leave you no time to run your business, outsourcing certain functions can help you focus on essentials.

Only you can set goals and motivate your employees.

However, today’s sophisticated technologies allow you to cost-effectively outsource Human Resources Management functions such as payroll administration, performance tracking, timekeeping and more.

Contact us if you’re interested in more information!