Economic impact of good HR

by | May 16, 2016 | Performance

Good human resource management is often limited to ensuring businesses act in ways that comply with legislation, and staff are treated with respect and dignity. However, human resource management is not just about compliance. It can also be used ensure that your business has the right number of staff, with the correct skills, tools and attitudes to achieve your business goals.

The Department of Labour has highlighted the benefits of good human resource management by including six people-related business drivers among seven key ways to improve productivity.

SEVEN KEY DRIVERS TO BUSINESS SUCCESS

Building leadership and management capability

Focus your management team on what adds value to the business, then give them the time and skills they need to achieve your business goals.

Creating productive workplace cultures

Poor performers are often inadvertently rewarded by being given less work, and conversely, good performing staff are sometimes punished by being given more work. Motivate your teams by using performance management tools to reward good behaviour.

Encouraging innovation and the use of technology

Effective use of cloud-based systems not only makes a business more efficient, it can reduce overheads and allow for a flexible or distributed workforce.

Investing in people and skills

Investing time in the training and support of your team and their skills is critical to the long-term success of all businesses.

Organising work

Clearly defined roles and structures ensure that people understand the tasks which add value to your business. On the contrary, poorly defined roles and responsibilities result in wasted time and duplication of effort.

Networking and collaboration

Relevant knowledge and ideas exist at every level of your business. successful organisations understand how to encourage staff to speak up, share knowledge and collaborate to achieve business goals.

Measuring what matters

Key performance Indicators (KPIs) such as gross profit and turnover tell us what has happened in the past. But successful businesses focus on competencies such as customer focus and attention to detail in an effort to increase KPIs.

Engaged employees drive competitive advantage. Let HRtookit show you how to motivate your team with our Performance Toolkit.