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5 Reasons for Having Good Human Resource Management

My 5 top reasons for having good human resource management (HRM)

1. It costs less

Good human resource management ensures you are compliant with employment legislation so reducing the risk of costly litigation should you have an employee dispute. However, there are considerable reductions in cost if managers have clear policies and procedures by which they can make fair and consistent decisions about employees. It saves their time and does not contribute to high stress levels amongst your management team.

2. It increases employee productivity

Recent studies have indicated that employees are more likely to be productive if they are treated fairly, equitably and consistently. By having clear HR policies and procedures that are relevant, appropriate to the organisation, consistent in their application, regularly reviewed and communicated employees are more likely to focus their energy on their role rather than grumble about perceived inconsistencies and unfair treatment.

3. HR supports organisational objectives

Good HRM can support your organisational objectives by developing a strategy or practices to support the business and its employees in achieving them. For example, if customer care is an essential part of your product or service delivery HR can support this with recruitment activities to identify customer service aptitude in potential employees, develop performance management practices to support and measure employee achievement.

4. Improves employee retention and makes your business attractive

Good HRM will support your talent in your organisation via the identification of potential through succession planning and identifying potential development opportunities to support individuals in their personal growth. This ensures you keep employees and also attract good talent. This may seem a little fluffy to some but her are some basic stats that might make you think again. It costs on average £30,614 to recruit an employee (www.hrreview.co.uk). Seems high doesn’t it? But this includes cost of lost output and the logistical costs of recruiting and absorbing a new employee. Compared to £1,600 per employee spend on training (2013 UK Commission’s employer skills survey) perhaps puts it into perspective with HR’s help an organisation can identify the costs involved in recruitment and consider how best to reallocate cost and spend.

5. It puts £’s on the bottom line

Although the last and probably the most important good HRM will put £’s on the bottom line. Employees who are treated fairly and consistently; are valued through development and reward; have the opportunity to put forward their views and ideas; have good working relationships; and their efforts are guided and recognised through effective performance management are likely to be both a good representative and advocate of the organisation they work for which will ensure clients and customers trust in the organisation and return time and time again.

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