As it is universally said, “people don’t leave the company, people leave people,” and HR is all about the people. Since HR is a fascinating job then it could be said it is a movie where recruiting is just the first part, but ‘retaining’ the employee is the climax which can only have a happy ending if employees stay in the company happily ever after.
So for a happy ending or can be better termed if said as a constant fresh start, what matters the most is observing the finest HR Practices. Generally, these two concepts HR activities and HR practices are misconceptualized or rather many times treated as the same, but precisely they are not.
HR activities are the routine activities inclined with the strategies determined for HR practices. They allow the goals of the HR department to be carried out. HR activities include:
- Payroll
- Feedback
- Selection and Recruitment
- Development and Training
- Compensation and rewards
- Relations of employee
- Retention
- Security and health
- Employee attendance
- Overtime and bonuses
Whereas HR Practices is the emerging concept in the changing world of human resources is, with an increased sense of purpose and focus on activities that add value to the business as a whole. HR nowadays is not merely an administrative or reactive field; rather it now leads the way in terms of positive business change. HR Practices are clear plans, principles, or ideas that are accepted universally by companies offering them with the best business execution. This is regardless of which company, industry, or niche is it applied to. In simple words, HR practices try to identify business needs and build plans around it, and HR activities are responsible for executing the plans that meet business goals.
Benefits of Good HR Practices
- A higher rate of employee productivity: It has proven nowadays that employees can perform at a much higher rate of productivity when supervisors and managers pay more attention to them.
- Maintains organizational culture: The culture of business impacts every person within the company. The HR department ensures that all employees are well suited to the company’s culture. With a healthy company culture, it obtains employee retention, an honest reputation, increased productivity, and quality.
- Increases employee satisfaction: Effective HR management supports employees, understands employee motivations, and ensures the best employee experience is being met.
- Training and development: Training needs of an employee are identified. Needs that fit in with your broader business strategy. Continual learning will mean that employees can keep their skills updated and convey valuable and innovative ideas back to the corporate.
- Ensures retention and better brand name: Best HR practices always results in higher retention. It not only serves to be beneficial for employees but also acts as a base of a better management system, which ensures brand value and more goodwill.
Top 10 Best HR Practices
Top Ten HR Practices that help in achieving organizational goals:
1. Safe, healthy, and happy workplace: Creating a safe, healthy, and happy workplace ensures that employees feel at home and stay with the organization for a very long time and capture their thoughts through frequent surveys.
2. Performance linked bonuses: Awarding bonuses or including a variable component in compensation as an incentive based on performances. Bonuses must be designed in such a way that employees understand that there is no payout unless the company hits a certain level of profitability. It is good for employee retention also.
3. Flexible Timings: This is something that has been gaining a lot of buzz in many companies these days. People are becoming big fans of flexi-timings as we believe that employees do more work when they are not busy looking at the clock. We have a 12-hour clock during which an employee can come in and work for 9 hours. As long as the work is getting done and it does not affect coordination amongst teams.
4. Dress Code: No proper dress code policy. People should always be judged by the work they do, how they do it, and the value they bring to all the company, Employees’ liberty to wear whatever they want when they come to the office. The only criteria are to use their good judgment when dressing for meeting any external entities like clients or vendors.
5. Fun at Work: It is realized that all work and no play makes Jack a dull boy, and that’s to host fun programs, ranging from pizza lunches to potluck parties and movie evenings. These are the major things that ensure employees happiness so that they do things that make clients happy.
6. 360-degree performance management: The notion of carrying out an annual performance appraisal between managers and employees has been turned for a while now. The 360-degree performance management focuses on gathering objective and relevant feedback from a range of an employee’s contacts, including their manager, colleagues, subordinates, and external contacts. It’s a useful way of achieving a well-rounded and objective view of performance management from a variety of sources. It can help an employee address performance concerns in specific areas, also be rewarded for excellent performance in others.
7. Employee feedback mechanisms: Agile approaches of organizations recognize that feedback works in two ways. While providing employees with the proper feedback to enhance their performance is vital, so is allowing staff to present their opinions about the business to drive improvements. Staff surveys can be useful to gauge employee morale in general, as well as give individuals an opportunity to confidentially voice problems or concerns. Managers use this feedback to tackle issues about the working environment or management style, to help employees feel more valued.
8. Owning unused vacation: Vacation days are technically an employee’s to us as he or she sees fit. If they don’t use them, for whatever reason, the fresh idea is to allow them to donate them to rest employees. Perhaps the beneficiary for preparing for a life-changing event. The point is that HR acknowledges the employee earned these days and can donate them out without company involvement.
9. Giving nap time: The best method to maintain health and work ethic is to get enough sleep by getting at least seven to nine hours or taking a nap during the day. Napping helps to enhance concentration, productivity, and helps reduce anxiety. Many companies encourage napping in the workplace.
10. Offering referral bonuses: As per research by Jobvite, referrals are statistically higher for hiring better employees with higher retention rates. Recruitment by referrals works well because employees at the company are familiar with the work culture and values. High performing employees will be more likely to refer candidates with similar qualities.
Picking the best practices discussed above relevant to the organization can achieve higher employee preservation and happier employees who contribute their best.