Human resources – anything and everything that occurs within the ‘employee lifecycle’ of an individual.
The HR abyss – pitfalls & possibilities
Referred to as ‘personnel management’ in the 1970s, ‘HR’ is now a commonly used acronym for Human Resources, relating to the provision of human-resource management services within an organisation.
I believe that HR relates to anything and everything that occurs within the ‘employee lifecycle’ of an individual.
What is the employee lifecycle?
This refers to the journey that occurs for an employee from the first interaction that occurs at your recruitment process through to the last interaction they have with your business at the time of exit, whether that be via termination, resignation or redundancy.
The HR opportunity is to ensure that each stage of the employee lifecycle is managed in the most efficient, valuable and meaningful way possible, using best-practice HR techniques.
HR is an opportunity to ensure that each stage of the employee lifecycle is managed in the most efficient, valuable and meaningful way possible.
What is ‘HR’ all about, anyway?
Many Australian business owners hold an antiquated paradigm of HR – understandable, given that for most business owners in the small-enterprise sector, the predominant exposure they’ve had to HR processes relates to ‘hiring and firing’.
Their businesses simply haven’t had the size, complexity or scale to require any broader HR processes to be harnessed. However, the workplace legislative landscape has changed so significantly over the last decade that business owners can no longer ignore the importance of more comprehensive HR processes.
The new breed of business leader seems to understand the HR challenge well.
‘The biggest risk in not setting up sound HR practices is most definitely letting down my staff,’ says Adam Wiser, Managing Director of MindAtlas. ‘Each employee has the right to work in an environment where their HR requirements are met, which includes everything from payroll and superannuation practices to training and development to working in a harmonious and accepting workplace.
‘To me, HR is about taking care of my employees and ensuring that we are doing everything right for them.’
How can you benefit from HR?
Businesses that are passionate about their HR practices should be given easy access to experienced HR industry experts via virtual and/or on-site means in a way that works best for them.
This offers a revolutionary, new-age alternative to the traditional HR approach, as it results in businesses receiving HR support, advice and guidance as and when they need it most.
How can your business benefit from these ‘HR department’ services?
Why not have access to HR services, as and when you need them, via fully outsourced means? Just as you would utilise a lawyer, accountant, doctor, insurance broker, electrician or plumber, consider having access to an ‘HR department on tap’ as a realistic and cost-effective priority for your business. Simply turn it on and off as required, in line with your specific HR needs.
‘Most small businesses do not understand the value of strong HR process and practices and they forget that people are what make the business,’ says Marcus Simkin, CEO of Myriad IT. ‘It is important to have documented HR processes and policies that the business can rely on when needed.
‘Initially, most businesses think that they will never need HR policies and processes until the time comes when they are not in place and they need them most. This is when it can turn into a very costly exercise both financially and culturally, turning a once-thriving business into a shadow of what it once was – and very quickly.’
What should your business focus on?
You should, as a bare minimum, ensure the following:
• Your business has legislatively compliant staff employment contracts that align to current Fair Work requirements and National Employment Standards.
• Your business has a set of comprehensive core HR policies to mitigate workplace risks such as bullying, harassment and discrimination.
• Your business has a clear set of position descriptions to ensure role clarity and team effectiveness.
• Your business has a simple yet effective process to manage, appraise and reward the performance of your staff.
By not focusing on and prioritising your HR activities, says Benjamin Kohn, Director of Link Financial Services, ‘you could lose key staff, which could destabilise your clients and cause harm to the long-term success of your business.
‘HR is the cornerstone of a good workplace culture and professional development framework.
‘Investing in our HR platform has assisted us with retaining great staff, enabling them to nurture and develop their skills and most importantly contribute to a fantastic working environment.’
Management guru Peter Drucker says that management is doing things right, whereas leadership is doing the right things.
Heed the lessons of successful business leaders by doing the right thing for your business. Prioritise the strengthening of your HR practices for long-term success. You won’t regret it.
Adam Kreuzer, Director, World HR
