Five ways you can build a better business through HR

It is tempting to regard HR as merely a tick box exercise, something to keep YOU out of legal trouble and keep YOUR EMPLOYEES under control.

In fact, lean into it fully, do HR properly, and it can be your secret weapon for helping your business thrive.

In her abruptly announced 8:00am speech last week, the Chancellor maligned the poor productivity that blights the UK. She specifically mentioned slow broadband speed as an example of what holds us back. That’s technological. but there are numerous controllables within HR’s remit where you can achieve productivity gains – from reducing absenteeism to providing targeted training.

Want to know the main areas where great HR can help you build a better business? Let’s look at our top five.

1 – Performance management and training

The traditional annual appraisal is one part of HR that can feel like a box-ticking exercise. And if you treat it as one you will get little value from it. Instead, use it to give clear targets to employees – SMART ones (specific, measurable, achievable, relevant and time-bound) – and to review progress every year towards their goals.

Where they are doing well, recognise this verbally and through remuneration and opportunity. Conversely, where they are struggling it is an opportunity to formally note this and take action. Whether they are high-flyers or low achievers, discuss targeted training ideas. Be sure to check in with employees on performance more regularly than once a year though – to keep them on track.

2 – Recruitment and retention

Even for basic roles, the true cost of recruitment can run into thousands of pounds once you have accounted for the time spent, advertising, training and a temporary loss of productivity while the role is vacant and they are getting up to speed. Recruiting more senior staff can get much more expensive still, especially if recruitment agents are involved.

So getting recruitment and retention right are essential for running a successful business, to avoid the costs and disruption of churn. Good HR practices will aid this at every step of the way. Designing the role and person spec, shortlisting and interviewing, onboarding, training, remuneration and benefits, and all the back office admin that makes for a smooth employment relationship from the start and ongoing.

3 – Culture

Some employers really buy in to culture, others dismiss it. Whatever your opinion, one thing is for sure: you do have a culture – by design or accident every business does!

In a survey on company culture by an HR platform, it was found that two-thirds of employees agreed that the culture attracted high quality talent, and that it helped drive employee engagement. Even more – seven out of ten – said that it drove business results.

HR can help you develop and communicate values, policies, training and management skills that build a strong, intentional, and admired company culture which aligns with your business goals.

4 – Absence management

Absence management is not just about preventing people from pulling sickies (although that is part of it). It can encompass every aspect of attendance and absence (sickness, annual leave, statutory leaves) to ensure you get the most from employees, and also that it is done efficiently through dedicated software.

This removes much of the admin by letting employees self-service (say, on holiday booking); allows you to report on data, for example looking at suspicious patterns of sickness absence; and staying on top of staffing levels at key times of year, like Christmas and the summer holidays.

Following good practices, like return-to-work interviews and the use of occupational health for long term sickness absence, will help bring issues under control that may otherwise get away from you.

5 – People strategy

Most of what we have talked about is tactical HR, adding value to your business by getting on top of the day-to-day. But what about the bigger picture stuff. That can add enormous value to your company, like how you nurture talent, change management, succession planning…

This requires engagement from the top of the business, whether you have a dedicated HR director, or your top management enlists outsourced senior help, like from our HR directors at The HR Dept.

Add value with HR

Clients often come to us because of an acute problem that they need help with. If you would like to get ahead of the game, why not see how we can help with raising your whole HR performance, and subsequently your business success? We can help with retained advice, or one-off projects large or small.