04. How to Boost, Measure and Improve HR Effectiveness

 

Dear Gentle Reader,

Welcome back to my 4th article I hope your would enjoy.

Human asset (HR) administration is one of the foremost significant variables in progressing a firm’s execution. Trade originators can be experts in their businesses, but apprentices in overseeing representatives. So, the nearness of HR is fundamental. An experienced HR supervisor cannot as it was resolving organizational behavior clashes, but moreover bring in various gifted workers. A fruitful HR office can create an effective selecting prepare and upgrade the in general efficiency of a company. Later reports appear that 83% of HR pioneers are compelling in shaping company decisions. These days, increasingly trade proprietors realize the significance of HR offices in making a viable organization. In spite of the fact that most company executives are mindful of the benefits of HR, they don't know how to degree its viability. Besides, they don't know how to make strides HR viability after assessing it. What are the key execution pointers (KPIs) in this estimation? What are the techniques for upgrading HR execution? This article will present key markers and methods in measuring and creating HR viability.

3 Key Indicators of HR Effectiveness

1. Employee Retention

As job-hopping becomes more and more common among millennials, HR plays an essential role in maintaining current talent. According to the CEB Corporate Leadership Council’s 2016 research reports, only 5% of organizations feel they are effective at maintaining a high employee retention rate. Employee retention rate refers to the number of staff members who stay at a company during a specific time period. It is one of the most frequently used measurements in HR effectiveness because it illustrates the hiring efficiency of HR (in other words, the department is finding employees who are the right fit for the company). It also indicates a pleasant working environment—the more agreeable the working environment, the fewer employees likely to leave their jobs. Besides, the employee retention rate is easy to calculate and can be regularly analyzed. As a result, employee retention becomes the most common KPI in evaluating HR effectiveness.

2. Employee Satisfaction

Employee satisfaction is another key indicator of HR effectiveness. How do employees feel about the company atmosphere? Are all the organizational conflicts adequately resolved? Do all the departments communicate effectively? These are critical questions that influence employee satisfaction. And if employees are satisfied, they will be more productive. HR is responsible for solving these internal issues so the company is harmonious and efficient. Compared to employee retention rate, employee satisfaction is harder to measure due to its subjectivity. A frequently used method to measure employee satisfaction is an anonymous survey. Anonymity allows employees to express their true feelings so the survey can deliver the most accurate responses.

3. Company Culture

Creating a strong company culture is the core responsibility of HR. Each company has its own unique company culture, such as equality, innovation and so on. A strong company culture creates a sense of belonging for employees, giving them a feeling of “identity” or “home.” However, company culture is the most difficult among the three indicators to measure because its data is hard to collect and evaluate. To measure company culture, we can use common values such as transparency, diversity, and equality to see if a company follows its values in daily practices, such as promotion. High performance in employee retention and satisfaction are also indicators of strong company culture. Although the process of measuring can be costly and time-consuming, it is worth the investment to evaluate HR. The effectiveness of HR directly relates to a company’s performance. In other words, whether the company has efficient communications, suitable recruiting processes, and productive employees is dependent on HR effectiveness. Therefore, evaluating HR effectiveness is a critical step to improve a company’s overall strategic development.

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10 ways to improve HR performance

1. Improve your employee recruitment & selection process

Ensuring the recruitment process is managed effectively is one of the first steps you should take to improve your organization. Employing the wrong people can cost you in both time and money. A bad candidate who fails to fit in with the team can disrupt the company culture and create a loss in productivity.

 

Spend time perfecting the job description.

Promote your company and make it sound like an attractive place to work.

Don’t just list skills - these can be enhanced with training. Consider hiring candidates based on the attitudes and qualities you value in your staff.

Use all of the tools available to you to find the best talent, including LinkedIn and networking events.

Ask for feedback from candidates on your recruitment process and implement their suggestions for improvement.

Finally, ensure that your recruitment process is fluid and adapts well to changing workplace needs.

2. Improve communication in the workplace

Effective internal communication is central to all business goals. It avoids confusion, encourages teamwork, allows for collaboration, provides purpose and creates a positive company culture.

 

However, communication in the workplace is often insufficient. According to Entrepreneur, 46% of employees leave a meeting unsure what they are supposed to be doing next.

 

The evolution of technology has given us many opportunities to improve communication through email, instant messaging and video chat services but using these tools is only the first step.

 

Improving communication needs to come from the top – employees need effective and clear briefs that relate back to the business goals. They need to be given the opportunity to provide regular feedback and ask questions.

 

Alongside clear business communication, employees should be given the opportunity to communicate socially at work too.

 

3. Invest in employee health & wellbeing

A study by Oxford University’s Saïd Business School, in collaboration with BT, found that workers are 13% more productive when they are happy. Professor De Neve, who conducted the survey, found that there is ‘considerable room for improvement in the happiness of employees while they are at work’. There is much more emphasis placed on a good work/life balance today than there was 50 years ago.

 

The coronavirus pandemic has had a profound effect on our mental health and wellbeing and employers need to consider ways to help their employees navigate these struggles. It can no longer be seen as a ‘personal issue’ that is entirely separate to work.

 

Employee Wellness Programmes can be a great way to improve happiness, reduce absenteeism and boost productivity.

 

4. Offer employee training & development opportunities

In a rapidly changing business environment, ongoing training is key to success. Often companies hire the right candidates and then the nurturing stops there. Five years down the line, that staff member is no further on in their career than when they started and they experience low job satisfaction.

 

Ongoing training and career opportunities are vital to retaining your staff. Plus, staff with updated skills are confident and more engaged with the company, therefore increasing productivity rates. Ensuring your staff are trained and kept up to date with the latest developments in the sector can ensure you stay ahead of the competition.

 

5. Ditch the annual appraisal process

Many companies still rely on the outdated annual appraisal to address employees’ strengths and weaknesses. No one looks forward to these arduous meetings that involve lengthy forms and awkwardly formal procedures. Twelve months is a long time in the business world and achievements that happened last year have become irrelevant and mistakes forgotten about.

 

Ongoing, regular meetings help to focus on objectives, address issues as they arise and ensure achievements don’t go unnoticed.

 

6. Act on employee feedback

The employee feedback process shouldn’t work one way. We often get caught up in telling our staff what they need to do to improve but we never ask what we need to do to be a better business.

 

Your staff are in the perfect position to help you improve. Involve your employees in decision making, they have seen first-hand what does and doesn’t work.  Ask them how you could improve company culture and employee satisfaction; what training they need and what processes could be executed better.

 

7. Recognize and reward employee achievements

Everyone responds well to praise and appreciation both inside and outside of the workplace. Thank you always goes a long way. Putting a reward and recognition scheme in place improves productivity, increases job satisfaction, boosts happiness and creates loyalty.

 

In a survey by Perk box of 1,532 UK employees, 42% said receiving greater recognition for their work would make them happier in 2021.

 

There are a number of ways to recognize staff, this could include social media recognition, awards for meeting core values, end of year awards, colleague thank yours and long service awards.

 

8. Develop and share your company’s purpose and passion

Your HR department is perfectly positioned to share the company vision and value with all employees. Firstly, you must identify your organization’s purpose and ensure everyone in the company is actually aware of it. Are you articulating it clearly? Do they understand how their role contributes to the organizational goals? Regular communication is key in sharing your message.

 

9. Empower your team and build trust

Business success relies on a whole team of people collaborating and sharing their ideas, success is not due to one single person at the top barking orders. Micromanaging can demoralize your employees, result in frustration and limit their creativity.

 

You need to listen to your employees, challenge them to think outside the box, implement their ideas and trust them to make decisions.

 

Being ordered to do something tends to negatively impact on our motivation. However, when we’re included in the decision-making we feel part of the bigger picture and our productivity improves as a result. Empowered employees are more likely to go the extra mile for you.

 

10. Redefine the employee experience & workplace

COVID-19 has profoundly changed the face of the workplace and encouraged businesses to adopt more flexible approaches to working. Gone are the days of long commutes and 9-5 structured workdays.

 

Prior to the pandemic, flexible working was still a privilege reserved for the select few, with many still cramming soullessly onto the tube for the morning commute. Flexible working allows for a better work/life balance with increased childcare opportunities, less time wasted travelling and helps prevent employee burnout.

 

As things begin to return to normal over the next year, it is essential to consider the new face of the workplace. Allowing a blended approach to office and home working could help increase workplace productivity and improve employee wellbeing.

Summary/Conclusion:

Happy, skilled and valued employees boost workplace efficiency, look after your customers and witness increased productivity levels. At Wardroom, we believe employees should be at the core of your business and therefore Human Resources should be your most valued department. By following these 10 ways to improve your HR performance, you should begin to see increased efficiency, productivity and overall business success.

 References ;-

Walker, J.W. and Bechet, T.P., 1991. Defining effectiveness and efficiency measures in the context of human resource strategy. In Bottom line results from strategic human resource planning (pp. 235-245). Boston, MA: Springer US.

Akhigbe, O.J., 2013. Human resource planning: A key factor in ensuring the effectiveness and efficiency of organization. Journal of Emerging Trends in Economics and Management Sciences, 4(4), pp.388-396.

Opatha, H.H.D.N.P., 2009. Human resource management. Department of HRM, University of Sri Jayewardenepura.

Thank you !