In the HR 4.0 scenario, human resource management is no longer limited to recruiting and retaining talent. HR has transformed into a function that equally participates in achieving business objectives as other functions such as sales, marketing, operations, etc. With a suite of best practices, HR can propel employers towards their business goals. Modern HR practices are prudent; evolved guidelines and a set of techniques that bring superior results and efficiency to modern workforces. Modern HR practices create resourceful humans that easily adapt to change and thrive in challenging business environments. Workforces nurtured with modern HR practices create immense value for the organization and assist employers in meeting their business objectives even in uncertain and volatile times.
This article attempts to map the contribution of modern HR practices in advancing employee’s business goals.
Top Modern HR Practices and their Role in Advancing Business Goals:
Modern HR practices focus on building great teams that outperform, innovate, and are self-sustaining. So, how does it work? Employers can never achieve their business goals and visions if employees don’t live upto the expectations. HR leaders, therefore, strive to make a system that motivates human assets to do amazing work without the need for forceful control. Employees are nurtured in a way that even if they leave the organization, they don’t cease to be your brand ambassadors.
Let us take a look at some of the top modern HR practices and how they foster employer’s business goals:
Today technologies such as HR software, Human resource management system (HRMS), Human Resource Information systems (HRIS), etc., create more touchpoints for employees and the HR department. With HR technology, automation of tasks such as employee benefits, compensation, leave approvals, and even training leaves more room for HR managers to work strategically and in a focused way for hiring the most productive workforce rather than being equipped with manual tasks. Productive talent is the key to drive business profitability.
AI-based Performance Management:
Subjective appraisals are detrimental to employees’ productivity, job satisfaction, and loyalty towards the organization. AI-based performance management software is one of the best HR practices that ensure unbiased appraisals and promote a sense of security in the employee. Quality promotions lead to better decision-making at higher positions and advance business goals.
Modern HR managers know that rewarding employee (bonuses, perks, stock options, etc.) are never an expense but an investment that ensures the fulfillment of long-term business objectives and consistent profitability. The HR policy of South-West Airlines of sharing profits with the employees led the aviation giant to 47th consecutive year of profitability.
Listening to Employees:
History is testimony to the fact that even unconventional and seeming unreasonable ideas have inherent value. What was first laughed upon as stupid ideas have later created a lot of unicorns from startups, enabled established businesses to scale greater heights, and allowed companies to revolutionize the business world. When employees are listened to, given importance, and provided a chance to share their ideas freely, it works wonders for the organization.
Measuring HR Metrics:
Measuring and assessing key HR metrics using HR tools (that generate analytics and actionable insights) provides vital information about a company’s operational efficiency, prevalent issues, and workforce capabilities. These metrics are instrumental in driving continuous business growth as employers can improve their organization’s core competencies by acting upon the insights. HR managers can hire better talent and effectively train the existing ones by analyzing metrics related to customers, business processes, finances, employees, and recruitment.
High-end Data Security:
Spur in cybersecurity breaches in the current times leaves sensitive HR data and employee information at high risk. HR departments are using high-end data security features of the HR system software that mitigate all types of vulnerabilities and keep HR data secure. This ensures uninterrupted work, prevents litigations for employee data leakage, and stops any competitor with malicious intentions from poaching your employees using the stolen details.
With workforces going remote, the need for employees to stay connected with their organization and employer’s concern about monitoring employee performance is addressed by ‘the anywhere HR.’ Using HRMS software tools, modern HRs stay in contact with employees, monitor progress, and allow work flexibility from anywhere. This practice is a prerequisite for organizations that work remotely for varied reasons.
Modern HR focuses on providing employees with the freedom to deploy their cognitive thinking, creative faculties, and individual work traits to be a self-managed team rather than being scrutinized at every step. The multinational conglomerate 3M provides employees 15% of the paid time to explore their creative side on personal projects. 3M has achieved great success and is consistently ranked among the top innovative companies in the world.
The demand for innovation and creativity for staying ahead of competition necessitates organizations to allow employees to break the silos and communicate freely. Modern HR practices of organizing inter-departmental meets, games, conclaves, in-house training, and interaction programs go a long way to ensure departmental silos are eliminated and free flow of information results in sharing of innovative ideas.
Employee Life Experience
While your product features, costs, manufacturing technique, distribution method, etc., can be copied, employee competence and loyalty cannot be imitated. Employees still remain the best asset that differentiates organizations, and therefore, their well-being, both physical and mental, is crucial for sustained productivity. From identifying skill gaps to playing a crucial role in employee life experience, HR has evolved considerably over the years. Organizations that focus on employee life experiences tend to perform better.
Learning and Development
Learning and development function is crucial to keep the workforce competitive, capable, and blended together to work for the organizational goals. L&D is also a key to keep multi-generational workforces relevant. When employees are trained and upskilled to manage all facets of the business, they cash in more productivity for the employers.
Modern HRs make each employee understand how business works so that employees can contribute to making the products and services better. When employees know how their company operates, they can be instrumental in providing insights that change the course for better business opportunities.
Modern HR practices are not passive or restrained to service-related functions. Today’s proactive HR functions influence business strategies, organizational design, and operational priorities. With the right HR technology in action, modern HR practices pave the way for advancing the employer’s business goals.
James Mordy is a content writer for Goodfirms. A voracious reader, an avid researcher, a logophile, and a tech geek, he loves to read about the latest technologies shaping the world. He often articulates the very nuances of the tech world in his blogs. In his free time, he loves to watch movies and analyze stock markets around the world.