How Human Resource Management Can Support Everyone

Human resource management (HRM) is a strategic approach to business that developed when companies realized one important fact: their most important resource is their employees.

Regardless of the quality of your suppliers, the state of your technology, or the business relationships you manage to form, if your employees are unhappy or underperforming, your business will suffer.

It’s the job of your HRM to ensure this doesn’t happen.

In today’s blog, we’ll discuss the following:

• The true nature of human resource management
• What strategic human resource management looks like
• Some strategies and best practices to help you get the most out of your HRM

Let’s start by talking about what HRM really is and why it should be a focus for any business.

What is Human Resource Management?

Human resource management is more than just a department; it’s a set of strategic decisions your company makes that are aimed at maximizing the value your employees bring to the company.

Since humans are involved in every aspect of your business, this also means that HRM should be tailored to support every department.

Human resource management is focused on:

Company Policies: Policies that protect both you and your employees. These include codes of conduct and employee handbooks.

Recruitment & Hiring: HRM should be directly involved in defining, sourcing, and selecting candidates who align with a company’s needs and culture.

Training: It’s HRM’s job to educate new employees on necessary job skills and company procedures.

Ongoing Employee Development: Including continuous training in new skills, techniques, policies, and even software.

Performance Management: HRM should be responsible for regular performance reviews, feedback, and succession plans.

Pay & Benefits: It’s the job of human resource managers to determine what constitutes competitive compensation, and to create benefits structures that help your business attract and retain talent.

Organizational Change: HRM is also involved in planning and implementing change in a company to improve outcomes. For example, determining how to smoothly merge two departments to streamline operations.

While this is not an exhaustive list of all the aspects of strong human resource management, it should give you an idea of the wide scope of HRM.

How Strategic Human Resource Management Translates to Business Success

The ultimate goal of strategic human resource management is to align a company’s HR practices with the overarching goals of the business. Since those goals can change over time, HR needs to be managed strategically and flexibly.

If done well, this alignment can transform HR departments from mere administrative hubs to a pivotal driver of the business’s core strategy.

Let’s take a look at a few examples of how strategic HRM can translate to business success.

Hiring the Right Talent

Strategic HRM ensures the recruitment and training of employees are directly aligned with the business's strategic goals.

For example, a tech company might focus on hiring and developing software developers who are skilled in emerging technologies that the company aims to specialize in.

Smart Performance Management

Strategic performance management involves setting employee goals that support the company’s strategic objectives.

HRM can guide the development and implementation of roadmaps like these, ensuring your leaders can properly direct employees toward the company’s growth targets.

Organizational Flexibility

Strategic HRM facilitates organizational agility, allowing companies to adapt quickly to market changes or operational demands. They’re prepared for changes and have protocols in place to rapidly adjust their focus to keep the business on course.

This might be seen in a retail business that trains staff across various roles to respond flexibly to shifting customer service demands during peak seasons.

Ongoing Employee Engagement

Engaged employees are more productive and less likely to leave.

Strategic HRM practices, such as fair pay, recognition, and mentorship programs, contribute to higher levels of employee engagement by aligning employee satisfaction with the company's success.

These are just a few ways that human resource management enhances employee satisfaction, and directly contributes to the efficiency of the business. By aligning your HRM strategy with principles like these, you can gain a serious competitive advantage.

3 Tips for Implementing Effective Human Resource Management at Any Company

As we’ve discussed so far, effective human resource management is essential for any business. But this is especially true for SMBs that might not have the resources for full HR departments.

To get the most out of your HRM without a dedicated HR professional on staff, try these tips:

1. Establish Clear HR Policies

Develop concise, clear HR policies that outline expectations, procedures, and consequences.

Ensure these policies are easily accessible to all employees, and allow them to set the standard for behavior and operations within the company. A code of conduct and employee handbook go a long way here.

A simple example would be an onboarding checklist that ensures every new hire receives the same training and information.

2. Invest in Employee Development

Regular training and development opportunities can boost employee skills and company growth.

Consider cross-training employees across multiple roles, enhancing flexibility and coverage in small teams. This approach not only increases job satisfaction but also prepares your team for various business challenges.

3. Utilize Technology for Efficiency

Implement HR software solutions to streamline processes like payroll, benefits management, and performance evaluations.

Automation tools can help your team manage HR tasks more efficiently, allowing them to focus more on strategic activities.

For instance, using an integrated HR platform can reduce the time spent on administrative tasks and improve data accuracy.

Using these three tips, companies of any size can develop robust HRM strategies that support their immediate needs and long-term business goals.

BBSI Can Help You Implement Strategic Human Resource Management

Human resource management has a role to play in every aspect of your business. By finding the right employees, keeping those employees satisfied, and helping your leaders properly direct those employees, your entire business will benefit from strategic HRM.

For businesses seeking a new human resource management approach, BBSI can help.

We start with an extensive HR competitive analysis that examines your company's current condition and future objectives. That gives us a foundation on which to build an effective HRM strategy tailored to your business.

Then, with our advanced workforce management solutions and a wealth of experience across various industries, we can provide the strategic guidance you need to optimize your most important resource: your people.

If you’re interested in learning more about how BBSI can help your human resource management become an asset, find your local BBSI representative today.