The Human Resource strategy sets the direction for all the key areas of HR, including hiring, performance appraisal, development, and compensation.
The HR strategy is thus a long-term plan that dictates HR practices throughout the organization.
If HR executes these practices correctly, they will add substantial value to the business and its goals
These best practices are:
- Providing security to employees.
- Hiring the right people.
- Self-managed and effective teams.
- Training in relevant skills.
- Creating hierarchical corporate structure organization.
- Making information easily accessible to those who need it.
1. Providing security to employees
Human Resource best practice is employment security. Life is unpredictable and work is a stable factor that is very important to people. There is both a formal contract and an informal contract between the employee and the employer. Employment security enables employees to go home after work and provide for themselves and their families.Employment security also benefits organizations because it helps them retain their people
2. Selective hiring: Hiring the right people
HR best practice is selective hiring. Companies do their utmost best to hire exceptional people because they add the most value to the business. Bringing in the right people is, therefore, a key to building a competitive advantage.
The three key candidate characteristics.
- Ability
- Trainability
- Commitment
3. Self-managed and effective teams
High-performance teams are crucial for any company when it comes to achieving success. Teams provide value because they consist of people who are and think differently but are working towards a common goal. Creating and nurturing high-performance teams is one of HR’s key responsibilities. HR needs to encourage different teams to work together in the organization.
4. Fair and performance-based compensation
Contingent compensation is the fourth Human Resource best practice. It has everything to do with compensation and benefits. The practices work together to provide more value than they would alone, in this case, selective hiring, contingent compensation, and employment security. HR needs to encourage different teams to work together in the organization. A team is usually part of a larger entity, like another team or a department. By coupling organizational performance outcomes with individual rewards the individual is incentive to maximize this outcome.
5. Training in relevant skills
After recruiting the best people, you need to ensure that they remain the front runners in the field. Employers increasingly invest in skills-specific forms of training. In addition to formal learning, on-the-job learning also plays an important role. Learning is also becoming increasingly important for the latest generations. Learning is, of course, also important for HR.
6. Creating hierarchical corporate structure organization
Every employee is a valuable member of the organization and should be treated as such. This best practice in HR is rooted in the egalitarian practices of Japanese management. employees are more critical than others for the organization’s success, this shouldn’t be communicated in such a way. Such an egalitarian culture shows that everyone deserves equal respect and could help in promoting the sharing of ideas.
7. Making information easily accessible to those who need it
There are two reasons of information sharing is so important.
Firstly, open communication about strategy, financials, and operations creates a culture in which people feel they are trusted. It truly involves employees in the business. As an additional effect, it discourages hear-say and negative informal chatter.
Secondly, if you want your people to share their ideas, they need to have an informed understanding of what’s going on in the business.