Human resources managers oversee the most important component of a successful business – a productive, thriving workforce. This requires viewing people as human assets, not costs to the organization. As with any other asset, a talented workforce can be used strategically to add value to an organization.
Strategic Role of HRM
The human resources management team suggests to the management team how to strategically manage people as business resources. This includes recruiting and hiring employees with specific skill sets to meet the company’s current and future goals, coordinating employee benefits and suggesting employee training and development strategies. In this way, HR professionals are consultants, not workers in an isolated business function; they advise managers on many issues related to employees and how they help the organization achieve its goals.
Developing Skills for the Future
At all levels of the organization, managers and HR professionals work together to develop employees’ skills. For example, HR professionals advise managers and supervisors how to assign employees to different roles in the organization, thereby helping the organization adapt successfully to its environment. In a flexible organization, employees are shifted around to different business functions based on business priorities and employee preferences.
Building Loyalty and Commitment
HR professionals also suggest strategies for increasing employee commitment to the organization. This begins with using the recruiting process or matching employees with the right positions according to their qualifications. Once hired, employees must be committed to their jobs and feel challenged throughout the year by their manager.
Building a Talent Pipeline
An HRM team helps a business develop a competitive advantage, which involves building the capacity of the company so it can offer a unique set of goods or services to its customers. To build the an effective human resources, private companies compete with each other in a “war for talent.” It’s not just about hiring talent; this game is about keeping people and helping them grow and stay committed over the long term.
Staying Current and Competitive
Human resource management requires strategic planning to address not only the changing needs of an employer but also a constantly shifting competitive job market. Employee benefit packages must be continually assessed for costs to the employer. Tweaking the packages also provides an opportunity to increase employee retention through the addition of vacation days, flexible working arrangements or retirement plan enhancements. For example, in recent years many human resource professionals have overseen the addition of preventative health components to traditional health plans for both employment recruitment and retention efforts.