Human Resource Practices That Would Lead to Your Company’s Success
What we have in the prevailing marketplace in today’s economy is the effort that has been made by some well-recognized companies, among them, the Fortune 500 companies based in the United States, who have come to take note of the contribution of their human resource department towards the success of their organizations, SHRM. This has led to the creation of human resource practices by HR department, that motivate its members to continuously being proactive in looking at the business organization, as it engages its employees to determine how they can be supported in strengthening the company’s strategic policies.
A business organization’s human resource practices coupled with its policies are very important in the creation and maintenance of a work culture that is meant to reward, support and then create the expectation for the employees to be consistent in the performance of their work and provision of services. The ultimate goal is the achievement of an optimum customer satisfaction, which at the end leads to a satisfactory financial outcome that create a tremendous success for the company involved, SHRM.
Human resource professionals have been traditionally aligned with administration and finance, tasked with paperwork and far removed from where decisions are made in C-suite level leaders. It has been acknowledged in today’s organizations the value of employees as a key resource, therefore are embracing HR as a key strategic partner with organizational leaders. The new role being given to HR is behind the drive to have companies invest more in advanced technologies that will enable them to manage the workforce, in order to allow HR to spend more time in making valuable contributions.
It has been found based on an audit of Fortune 500 companies that having an HR executive officer among the company’s executive leaderships lead to high performance. In the audit, it was made clear the impact of having Chief HR Officer in the C-suite, which is that the companies with CHRO are averaging 105 percent more profit than their industry peers that do not have one.
Having a chief human resource officer at the C-suite conference table means that the person with the title is able to bring to the table issues affecting the HR department that could not have been possible were the person not there. So the CHRO presence is able to make the argument of the impact of having human resource on the company’s bottom line, the value it brings to the company’s strategic decision making process, and also the need for the company to create HR that is high performance and is involve in the learning and development of its employees, and also the need for an effective technological solutions.
According to some of the Fortune 500 companies audited, the CHRO in those companies embraced the use of customer analysis, proactive talent management as human resource practices. Some of the human resource practices policies enacted that directly lead to high performance in those companies include the exposure of HR risks, like the need to retain key talent in the company’s annual reports and instituting the continuous review of goals and performance throughout the year, particularly:
When the company involve identify risks in their annual reports, the company performs better when compare with peers that do not identify risk in their key financial and market metrics like return on assets (55%), operating profit (by 95%) and earning per share (by 54%).
The organizations that review its employees performance throughout the year are likely to continuously meet its quarterly financial expectation, and show a better average compound annual growth rate (CAGR) when they are compared to their peers that only review performance on an annual basis.
Organizations that have a higher part of its goals aligned and completed does better than its industry peers in key financial metrics, such as quarterly financial estimates, operating profit, earning per share, and price-earnings ratio.
Having a CHRO has proven to have a link to a company’s bottom line, demonstrating the vital correlation between effective talent management and business performance. There are many companies that are very successful in today’s marketplace because they have been able to institutionalized human resource practices platform that put forward an advanced, connected HCM solutions that manage an entire employee life cycle; starting from recruitment to retirement- taking the role from being transactional to strategic, also predictive.