Why Does A Company Need Good HR Practices?

As an owner/ MD of the company you could be thinking why you need good HR systems and processes for your company. A well-functioning HR system is aligned to the business strategy and goals and acts as a competitive advantage for your organization and results in improving both the ‘Top’ and ‘Bottom’ line of business. To answer your question “why?” take the test of checking some signs that existing HR systems and processes need an overhaul.

- Rajiv Misra

a. Inability to recruit and select the required team members.

b. The person whom you selected thinking he or she is a great performer is unable to meet the requirements for the role for which he/she was hired.

c. High attrition amongst the high performing employees of the company.

d. Issues with on time delivery and quality of product and services provided to customers leading to low customer satisfaction.

e. Team members not performing to the standard expected of them.

f. As an owner or MD you need to get involved in things which the team member

g. Multiple issues come up in the workplace amongst employees which often need your intervention to resolve.

h. Employee satisfaction and motivation is consistently low.

i. If things go wrong, blame games start with no one taking ownership of getting the issue resolved.

A typical HR system would include the following processes:

a. A process which covers Recruitment, selection and onboarding.

b. Policy framework which clearly defines expectations the organization has, from the employee and what the employee will get from the organization while at the same time aligning with compliance requirements and statutory requirements.

c. An objective Performance Management Process (PMP) which helps in clearly identifying your high performers, the steady contributors and the not so great performers.

d. A well-defined Compensation, Benefits and Incentive framework.

e. Training and Development to ensure constant up-gradation and skill-building of the employees.

f. Employee engagement framework to keep the employees motivated and willing to do more for the organization with a linked reward and recognition process.

g. Talent management and succession management framework.

h. To build the desired organization culture or as it is commonly understood, the way things are done in a company or shared belief of the employees.