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Written by advance on . Posted in Uncategorized

Using HR-Tools as the foundation for Organizational Success


The role of Human Resources is constantly being redefined to adapt to the changing economy and business environment. In Aruba we are certainly experiencing a rapidly changing economy and business environment while changes are not in the favor of most entrepreneurs. Due to the economic challenges, many companies are forced to review their way of doing business and agree that 2016 needs a game changer.

One way to change to game is to include essential HR philosophies into the overall business strategy. A successful strategy should include an HR structure with clear individual performance expectations together with challenging assignments, recognition as well as accountability for results. This will help your employees realize their full potential and will benefit business as a whole.

Strategic HR ensures that companies are achieving their goals in terms of performance and productivity. In order to strategically manage your Human Resources, ADVANCE recommends every organization to adopt and maintain the following essential tools:

Meaningful Job Description(s)

In setting clear expectations, job descriptions are the foundation for many, if not all important HR processes such as employee recruitment, selection, staffing, compensation, training & development and performance management.

Investing in developing job descriptions has many benefits as they…

… assist in making sure your staff duties align with your vision;

… assist in making sure your staff duties align with your vision;

… provide consistency and clarity for everyone involved;

… form the foundation for recruiting strategies;

… can be used to determine areas in need of training and development;

… allow for a basis on which to develop compensation plans.

 Job Evaluation

This is the process of measuring the relative ‘weight’ of each job and results in a clear overview of all jobs and how they relate to each other in terms of weight. Factors such as work complexity, decision making, bottom-line impact, communication skills and management scope are utilized to determining job grades. Job evaluation assesses the jobs (functions), not a particular person (employee). Job evaluation is important to objectively grade jobs and align them in job classes and salary grades. Job evaluation will guarantee transparency and fairness regarding the way jobs are graded. It will also enable you to compare job content and compensation with the external job market where appropriate.

 Salary Structure

Salary structures are an important tool for effective compensation and ensures that pay levels are competitive externally and balanced internally. A salary structure designed on the basis of job descriptions and salary grading allows management to reward performance and skills development while controlling overall salary costs.

Salary structures must be fair and competitive. If the salary structure is not up-to-date and out of sync with the overall labor market, you may find yourself paying too much for certain jobs (and needlessly increasing operation costs). On the other hand, you may also find yourself paying too little for certain jobs and having difficulty attracting and retaining talent.

 Employee Handbook

An employee handbook contains your organizations policies, processes and procedures. It is a tool used to give general information about the organization and sets expectations for your employees. An employee handbook provides staff with details of your terms and conditions of employment.

An employee handbook..

… Is important to help managers run the company smoothly and efficiently;

… Offers an opportunity to make a clear statement of what is important to the organization, including company culture and values;

… Provides consistency in implementing policies, ensuring that every employee receives the same information and treatment.

 Compensation Systems

A good compensation system balances the internal value of each job versus the external competitiveness while more and more attention is given to the individual needs, especially with regards to ‘new generation’ employees with often much less focus on fringe benefits (that they do not see as beneficial). Compensation and benefits are not the best ‘motivator’ but a compensation system that is not in sync with the market will negatively affect the productivity and satisfaction of employees.

HR Information Systems

While most businesses have all financial information available at the touch of a button, HR or personnel information is often hidden in hard copy manila folder and archive cabinets. It is essential that organizations invest in software to register, administer and manage relevant employee data not only with regards to payroll and benefits but also with regards to training, development and performance management.

Employee Satisfaction Survey

Employee Satisfaction Surveys are useful to explore factors that motivate employees and keep them involved. The results provide excellent input to Management to further strengthen the strong points and improve on the weak points. Conducting employee satisfaction surveys within your company can…

… increase productivity by giving employees the opportunity to voice concerns;

… uncover issues not readily apparent by seeking honest and truthful feedback about their work, management and company.

 Training & Development

Training & Development is an essential tool and investment to keep employees and organization at the required skills level. Training and development programs..

… Address weaknesses and allows employees to strengthen those skills that needs improvement;

… Improves employee performance;

… Ensures that employees have a consistent experience and background knowledge within the company;

… Creates employee satisfaction: employees feel appreciated and challenged.

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