Entries Tagged 'HR Strategy' ↓

Corporate Culture is the Competitive Advantage

Corporate Culture is a very important aspect of the organization. Corporate Culture is a complex of corporate values, behavior of employees and management and leadership style inside the organization.

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HR Role in Recruitment

Clearly defined role of Human Resources in Recruitment process is very important for measuring the success of the whole Recruitment Process. The overall setting of the HR Role in Recruitment is directly linked to Recruitment Strategy and HR Strategy.

HR Role in Recruitment

The Recruitment Strategy has clearly define the role of Human Resources and of Hiring Managers as it is a very important for setting the correct measures and to identify potential gaps in the whole recruitment process.

A traditional role of HR in Recruitment was an administrative part of the whole process. The HRM was responsible for maintaining the vacancies advertised and monitored, but the real impact of HRM to the performance of the whole recruitment process was minimal.
But as the role of Human Resources in the business was increasing, the HR Strategy was changed. From making the process working to the real management of HR Processes and the Recruitment Process was the first to manage. The Recruitment Strategy changed - the efficiency and costs to the company were more important.

The HR Role in Recruitment changed and HRM:

  • decides about the design of the recruitment processes and to decide about the split of roles and responsibilities between Human Resources and Hiring Manager
  • decides about the right profile of the candidate
  • decides about the sources of candidates
  • decides about the measures to be monitored to measure the success of the process

The role of HR in Recruitment is very important as HRM is the function to work on the development of the recruitment process and to make the process very competitive on the market. As the job market gets more and more competitive, the clearly defined HR Role in Recruitment will be growing quickly. HRM is not a function to conduct all the interviews today, the main role of Human Resources is to make the recruitment process more attractive and competitive on the job market.

Successful Recruitment Strategy

Hiring and selection of employees is one of the most visible HR processes within the organization. Recruitment is a very sensitive area to succeed and it always generates a lot of complaints from the managers.

For the successful recruitment process, the clear position of the organization on the job market has to be defined. It provides recruitment processes with the right focus on areas to search employees from.

The organization must have a clear decision about its position on the job market. When the statement is not clearly defined, the company will probably miss a lot of opportunities. The recruitment strategy.

The recruitment strategy is very sensitive to other HR Strategies as it has a huge impact on coming candidates to the organization. It is very connected with compensation strategy as it follows the remuneration principles of individual employees. In case, there is not a direct link between compensation and recruitment strategy - a lot of qualifying candidates is lost.

A good recruitment strategy should define the ideal candidate. An ideal candidate is not the best one available on the job market. The ideal candidate is the suiting the needs of the vacancy and with affordable salary requests.

The recruitment strategy also defines the best sources of candidates and it sets the overall limits for recruitment processes. But, in the next blog spots - more on recruitment strategy.

Right Business Compensation Strategy

When the Business decides about its Business Strategy and HRM Management Team decides about correct HR Strategy - it is a moment to create and implement a correct Compensation and Benefits Strategy for the organization.

The HR Strategy helps to navigate and set goals for HR Employees, managers and employees in the organization and it sets their expectations from the organizations. When the organization sets itself as a low cost provider of services, then HR Strategy cannot state the highest quality of employees is the goal. The quality is always expensive. Even with human capital.

The correct Compensation and Benefits strategy depends on overall HR Strategy and it has a huge influence on the rest of the organization. Compensation Strategy is about the costs of the organization and it can have a huge impact on total profit of the organization.

Setting the correct Compensation and Benefits Strategy needs a lot of interaction with the Business and Business Leaders as they will be final users of the strategy and it can hugely  limit their activities.

The business strategy is the main limit for the compensation strategy. A quality focused organization with expensive products can afford to employ quality staff. The organization focused on mass market with average products does not need to employ quality sort of employees and it can save a lot of money from the payroll.

The compensation strategy sets the position of the organization on the job market. And it has to be in line with any other HR Strategy - mainly in recruitment, training and development. But many organizations forget about the need of alignment and they lose money and efficiency.

HR Strategy and Business Strategy

Human Resources Strategy must follow the Business Strategy. It is very easy statement, but in many companies this easy rule is not followed.

HR Strategy

You can find a lot companies, which provide really sophisticated services to the customers, but their Human Resources should be called more Personal Administration Department. And many factories, which have really just basic needs in the area of human capital development have a very strong HR function.

HRM is a very expensive function for companies and each company should have a strategy in human resources area consistent with the overall business strategy. The HRM has to decide about the correct HR Strategy to be applied to fully meets the requests of the organization at the best return on investment into the human capital.

The main drivers for deciding about the appropriate  HR Strategy should be:

  • competition on the market
  • complexity of skills and competencies required
  • possibility of investments into human capital

The HR Strategy must clearly react to these conditions and it has also project the future development supposed by the overall business strategy. And it is the main task of the HR Management to find a suitable solution to make a complex alignment of the HR Strategy and Business Strategy.

HR Role in the Business

HR is not a department about a rocket science. The main goal of Human Resources is to keep efficient and cost saving operation with the human capital of the organization. Human Resources must know its HR Role.

The HR Department must fight for its place within the organization. There are companies, where Human Resources is really a strong department and there companies, where Human Resources is a department to be ignored.

When HR knows its position within the organization it can start to play its role. The roles are pretty well defined by David Ulrich. The role of HR can be divided into 4 main segments:

  • Business Partner
  • Employee Advocate
  • Change Agent
  • Admin Star

It is important to mention, the 4 roles have the same importance. The HR Department cannot decide about the stress to one role and ignoring issues in different segments. All the roles must be played at the same level to be a “trustful” business partner by other managers.

HR Role

HR Role is easy to be defined, but to act according the model needs a lot of smart people inside Human Resources, who can distinguish the priorities and strategic tasks, which will help the whole organization.