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HR Notes
HR Notes
HRM software
Almost all areas of HRM have sophisticated software that automates varying degrees of many
HR processes, along with other added features such as analytics. For example, job candidate
recruiting has seen enormous growth in the number of software platforms and systems that help
both employers and job seekers to electronically match organizations and candidates with each
other and then help manage the interviewing, hiring and employment processes.
While some HRM software systems started out on premises, nearly every area of HR tech,
especially HCM systems, is moving to cloud-based software as a service (SaaS) platforms.
HRM trends
Job opportunities for careers in human resource management remain strong. The Wall Street
Journal, in an analysis of data released by the Bureau of Labor Statistics (BLS), ranked the "HR
manager" job title as the 35th (out of 800) most promising prospect, based on median salaries in
2018 and projected job openings in 2028.
Generally speaking, human resources as a field is on the upswing. Companies are increasingly
recognizing the strategic difference a good HR department can make and are investing in them
accordingly. As a result, HR jobs are growing in demand. There is expected to be a 7% growth in
HR manager job titles alone within the United States from 2018 to 2028. Furthermore, salary
prospects remain strong, with the median HR manager salary currently sitting at around
$113,000. For HR specialist positions, median salaries sit at around $60,000. (as of December,
2020)
Principles of TQM
TQM requires organizations to focus on continuous improvement, or kaizen. It
focuses on process improvements over the long term, rather than simply
emphasizing short-term financial gains. More specifically, TQM puts a
spotlight on the processes that organizations use to produce their products,
and it calls for organizations to define those processes, continuously monitor
and measure their performance, and use that performance data to drive
improvements. Furthermore, it calls for all employees, as well as all
organizational departments, to be part of this process.
TQM's objectives are to eliminate waste and increase efficiencies by ensuring
that the production process of the organization's product (or service) is done
right the first time.
This management framework was initially applied to companies in the
manufacturing sector, but, over the decades, organizations in other sectors
have adopted it, as well.
Moreover, as business needs for efficiency, productivity and quality have
further evolved, many organizations have adopted other, more modern
management techniques. So, although TQM is still influential, other
management techniques, such as Six Sigma and lean manufacturing, which
better address organizational goals for the 21st century, have replaced it in
many businesses.
Benefits of TQM
The benefits of TQM include:
Less product defects. One of the principles of TQM is that creation of
products and services is done right the first time. This means that
products ship with fewer defects, which reduce product recalls, future
customer support overhead and product fixes.
Satisfied customers. High-quality products that meet customers’
needs results in higher customer satisfaction. High customer
satisfaction, in turn, can lead to increased market share, revenue growth
via upsell and word-of-mouth marketing initiated by customers.
Lower costs. As a result of less product defects, companies save cost
in customer support, product replacements, field service and the
creation of product fixes. The cost savings flow to the bottom line,
creating higher profit margins.
Well-defined cultural values. Organizations that practice TQM develop
and nurture core values around quality management and continuous
improvement. The TQM mindset pervades across all aspects of an
organization, from hiring to internal processes to product development.
Attrition is an inevitable part of any business. There will come a time when
an employee wants to leave your company – for either personal or
professional reasons.
But when attrition crosses a particular threshold, it becomes a cause for
concern. For example, attrition among minority employee groups could be
hurting diversity at your organization. Or, attrition among senior leaders can
lead to a significant gap in organizational leadership. Do you know where
your company stands on the employee attrition curve?
Employees are leaving the workforce faster than they are hired, and it is often
outside the employer’s control. For example, let’s say that you have opened a
new y designated as the Sales Hub for your company. Every salesperson must
work out of this office – but a few employees cannot relocate and choose to
leave the company. This is a typical reason for employee attrition.
But there are other reasons for attrition as well, including the lack of
professional growth, a hostile work environment, or declining confidence
in the company’s market value. Weak leadership is another factor that
often drives attrition among employees.
Attrition due to retirement shouldn’t be swept under the rug – your senior
professionals may choose to retire early or become independent consultants
due to factors other than age.
2. Voluntary attrition
This is the most common type of attrition, where employees decide to simply
quit their jobs. There can be many reasons for voluntary attrition (more on
that later) and most of them are in your control.
3. Involuntary attrition
In this scenario, it is the company and not the employee that initiates the exit.
For example, the employee may have shown instances of misconduct in the
workplace – a common reason for involuntary attrition. Structural reasons
could also cause attrition. Mergers and acquisitions are often followed by a
wave of involuntary attrition.
4. Internal attrition
Here, employees are quitting their jobs in one department to join another
department. In some cases, internal attrition is desirable, as it routes talent
towards more profitable areas. It also ensures better employee-job fitment.
But if a specific department has witnessed a high rate of attrition one year, it
merits an investigation. Is there something missing in the job? Is the manager
inadequately skilled? These are questions that HR needs to ask and find
answers to.
5. Demographic-specific attrition
This is a significant concern for progressive companies trying to build an
equal-opportunities workplace. Demographic-specific attrition means that
employees from a single group – women, ethnic minorities, people with
disabilities, veterans, or older professionals – are leaving the company in
droves.
You need to immediately deploy employee surveys to identify the root cause
of demographics-based attrition before it affects your workplace culture. A
positive culture can be the antidote to the quitting epidemic.
Simply put,
Attrition Rate = Number of Attritions/Average Number of Employees
x 100
As you can see, the impact of attrition cannot be negated by going on a hiring
spree. This is what makes it such an important metric for companies.
By now, you already know the top reasons for employee attrition. Let’s look
at the reasons for voluntary attrition:
1. Personal motivation
There has been a change in an employee’s personal life that compels them to
switch jobs. New parents might want to move to a city with better schools, a
mid-career professional may want to return to school – these reasons are
endless.
By conducting detailed exit interviews, you can keep in touch with these
employees and ensure that they consider your company in the future,
whenever they have an opportunity.
2. Professional motivation
This is where HR could play a massive role in controlling attrition. An
employee might leave because they felt there simply aren’t enough
opportunities for career progression in your organization. This is the case in
several technology companies, where technical talent is forced to fight for
managerial positions as they move up the ladder. Take inspiration from
Microsoft, which created a long-term technical track to prevent
professionally-motivated attrition.
This type of attrition is relatively easy to fix. Ask for regular feedback, listen
to the voice of the employee, and address any gaps in their employee
experience. Typically, someone who is happy with their job won’t quit if
most of their workplace requirements are met.
4. Poor employee-to-job fitment
We have all seen employees who join a company full of enthusiasm, only to
leave a month or two later. This could be an indicator that the job was not
right for that candidate, to begin with.
You can address attrition arising from this factor by finetuning your job
descriptions as well as the onboarding process. Employees will know
exactly what to expect, and you are less likely to witness new-hire attrition.
Keep these possibilities in mind when analyzing your employee attrition rate.
It will depend on the kind of talent lost, and why they left to figure out the
impact of attrition on your business. You can analyze this using HR
analytics.
Assess for job and culture fitment right at the time of hiring
Offer learning and employee development opportunities to accelerate
career growth
Regularly solicit feedback on employee satisfaction questions
Ensure a competitive pay package compared to other companies
Conduct detailed interviews after an employee has exited to spot
attrition trends
Now that you know the definition of attrition and its various nuances, you
can approach this metric from a clear, informed point of view. Remember,
there is no one-size-fits-all model that defines the causes of employee exits.
Segment the workforce into specific groups, use cutting-edge people
analytics, and measure improvements year-on-year to stay ahead of the
attrition curve.
Quality Circle
A quality circle or quality control circle is a group of workers who do the same or similar work,
who meet regularly to identify, analyze and solve work-related problems. It consists of minimum
three and maximum twelve members in number. [1] Normally small in size, the group is usually led by
a supervisor or manager and presents its solutions to management; where possible, workers
implement the solutions themselves in order to improve the performance of the organization and
motivate employees. Quality circles were at their most popular during the 1980s, but continue to
exist in the form of Kaizen groups and similar worker participation schemes.
Re-engineering in HR
12. Shaping the process:
Although senior management may lay down the general guidelines and direction the
reengineering effort will take, HR often can play a major role in determining whether it
will succeed. At many companies—including Minneapolis-based IDS Financial
Services, Monterey, California-based CTB and Palo Alto, California-based Syntex—HR
helped create the selection criteria for members of the steering committee. HR also
can interview and evaluate candidates. Even as the process filters down through the
organization, HR can play a key role in determining how team leaders and team
members are selected.
13. Creating job statements and role descriptions that reflect the new corporate order:
It isn’t enough to plug existing job descriptions into new positions created from
reengineering. It isn’t enough to use existing methodology to create new positions.
Reengineering requires serious introspection about what the company is trying to achieve
and what job and role responsibilities will help realize the goals. “It’s a whole new way of
thinking. The idea is to write job statements instead of descriptions, to outline roles vs. tasks,
and to structure work around the customer rather than a specific function or department,”
says Mary Layman, vice president of HR for CTB.
14. Working out compensation issues:
Pay scales and rewards must be structured to create the desired results. For example, a
company that wants to focus on customer service must measure and compensate the work
force based on that criteria. Likewise, HR must think about whether it should pay employees
for specific tasks they should perform from 8 a.m. to 5 p.m., or offer skill-based or
knowledge-based pay. “Too often, there’s a disconnect between the basic strategy and what
HR actually does,” says Caldow.
15. Training the new work force:
“A company may have award-winning training programs, but they probably aren’t going to
have a lot to do with the overall reengineering strategy,” says William A. Wheeler, a partner
at the consulting firm of Coopers and Lybrand in New York City and co-author of Business
Process Reengineering: Breakpoint Strategies for Market Dominance. Experts agree that it’s
important to provide plenty of training on specific skills employees will need in the newly
reengineered company, but that teamwork, decision making and trust building must also be
heavily emphasized over a period of time.
16. Molding the new corporate culture:
Stories, ceremonies, awards and rituals all have a major impact on how people behave.
Caldow insists that human resources can alter thinking by helping form a new ethnography.
It must be consistent throughout the organization, and it should be backed by plenty of
symbolism. Yet, the change won’t occur overnight. It may take weeks or months before a
real breakthrough in thinking takes place.
17. Facilitate communication in the work force:
Nothing is as frightening to a work force as change, and nothing changes a work force as
much as reengineering. Newsletters, videos, letters, E-mail messages, and companywide
and departmental meetings are all useful tools in quelling anxiety. Moreover, good
communication can help a work force understand how reengineering may benefit it in the
future.
Downsizing
Downsizing is the process of terminating multiple employees at the same
time. There are three major reasons that organizations conduct downsizing:
18. Cost reduction
19. Adoption of new technologies that reduce the need for a large number of employee
20. Relocation of the business (such as moving a factory from one country to another).
Employee involvement:
Employee involvement can be defined as:
The direct participation of staff to help an organization fulfill its mission and meet its
objectives by applying their own ideas, expertise, and efforts towards solving problems
and making decisions.
Employee involvement gives employees a sense of belonging to the organization.
As a result, they become more dependable. They accept greater responsibility for their
work and achieve better results. This increases the possibilities for creative thinking and
problem-solving in the workplace.
1. Productivity Growth
Productivity growth can be an important component of employee engagement.
Employers want productivity from their employees first and above all. So, it is
important to press the buttons, which can boost productivity.
It’s a scientific fact, that when we dedicate more time and effort to a task or
job, we become more visible in our thought processes. We increase
awareness, manage the situation with comfort, and keep our minds at ease.
Employees make calculated decisions when they are involved. They may plan
their work. They may bring more passion and commitment to their jobs. This
enhances the organization’s productivity and growth.
1. Improved morale
Employee morale refers to an employee’s attitude, mood, and satisfaction with
their employment. Achieving these goals will involve a work culture that values
employee engagement. Employees who have high morale are more likely to
stay inspired and work hard to achieve the company’s goals. They keep a
positive attitude toward everyone they come into contact with. They work
quickly and efficiently to fulfill their tasks.
Employee engagement improves employee morale and psychological
involvement. Employees that are confident in themselves are more engaged,
joyful, and like their jobs.
1. Good Relationships
Having a positive and friendly relationship with your employees is one of the
most important keys to success. Miscommunications are unavoidable in an
organization without a transparent relationship. As a result, progress toward
success is hampered.
Involvement allows everyone to share their knowledge. This creates a strong
bond between managers and employees. It also introduces the concept of
accepting each other’s ideas. And it improves the working environment.
1. Employee involvement with the organization
The following are elements of a learning environment:
· Excellent training programs
· Branding of employees
· Employee advocacy
· Employee skill-building modules
However, it also includes an interactive exchange of ideas in the workplace.
Employee feedback is one method for allowing your employees to participate
in organizational decisions. This will assist you in understanding the changes
that they require in order to perform well. They become more loyal and
dedicated when you listen to them and motivate them to work better. And they
assist you in creating a bright future.
1. Innovative Thinking
You will be able to keep your employees informed if they participate in your
executive meetings. It will assist them in keeping them up to date on
developments.
Employee involvement gives employees a sense of belonging to the
organization. As a result, they become more dependable. They accept greater
responsibility for their work and achieve better results. This increases the
possibilities for creative thinking and problem-solving in the workplace.
As an employer, you need to provide freedom and space to the employees.
This will assist in the generation of new ideas, which will keep you
competitive. In addition, it will provide you with new ideas that will have an
impact on the organization.
Outsourcing
Outsourcing in human resource management, or HRM, is the act of hiring an external firm to
handle part or all of your human resource needs instead of relying on a dedicated internal HR
department or employee. But what is human resource outsourcing? Human resource outsourcing
can include HRM tasks such as managing payroll and benefits, recruiting and onboarding,
navigating labor regulations, and more.
There are several different types of HR outsourcing models. Human Resources Organizations
(HRO) typically serve organizations of more than 1,000 employees and have a range of services
from which clients can choose.
Advantages of outsourcing-
One advantage of outsourcing is having expert advice and experience that a small or mid-sized
company might not otherwise have from a small or solo HR department. Another advantage is
that the business owners can rest easy knowing their HR is compliant. Employment regulation is
vast and ever changing, hiring an outsourced accounting firm can mean the business owners have
confidence they are in compliance as they hire and fire employees. Depending on the company
and situation, outsourcing may result in cost savings over a full-time employee salary.
Disadvantages of outsourcing-
A disadvantage of outsourcing HR could be a disconnect from company culture with an offsite
outsourcing company. However, the recent shift to remote work has shown that strong,
collaborative relationships can still be built even when teams aren’t in the same room.
Companies may also perceive a loss of control when outsourcing important and sometimes
personal HR functions, such as succession planning. For this reason, it is important to choose an
HR outsourcing company that is also a good cultural fit.
Technological change in HR
Technology changes the way HR departments contact employees, store files and
analyze employee performance. Used well, technology makes HR practices more
efficient. When used poorly, it can get in the way of managing the company's human
resources. Good HR practices maximize the benefits and minimize the problems.
6 HR Innovation All HR Managers Must Use
1. Recruitment Tools
Recruitment is one of the primary HR practices of all human resources personnel. You
can even say that the job of HR starts with hiring. For this reason, you must have the
best hiring strategies in place to begin your work.
In this case, all must understand that recruitment is no child's play. In a work-hungry
world, the applications are in hundreds, and the vacancies tend to be nowhere near the
former mark. In such a scenario, HR needs all the help to shortlist candidates and get the
best hire.
It turns out to be quite tiresome to go through the heaps of resumes, profiles, and cover
letters. In this regard, recruitment tools are the lifesaver of professionals everywhere.
They help set bars, shortlist resumes, conduct tests, schedule interviews, and make the
final hire.
5. Peer-to-peer Recognition
Recognition for the work done is one of the most self-satisfying elements for a worker. It
reflects on the hard work of the employee and gives them the confidence to do more.
Recognition also helps HR ascertain employee development and employee promotion.
For reasons such as, you must use the best system for employee recognition.
Here, recent developments suggest that recognition should be done at all levels and by
everyone. Traditionally, while recognition was only at the hands of senior management,
now team members should commend themselves for a job well done.
This is called peer-to-peer or peer recognition, i.e., recognizing an employee's work done
by other office employees. A holistic employee engagement platform comes in handy to
undertake workplace recognition as they include this system in their platform itself.
Barriers to achieving balance in our work, family and personal lives fall into two
broad categories:
External Factors: the demands created by our involvement in the world, and
Internal Factors: our beliefs, attitudes, and behaviors.
EXTERNAL
Requirements of the workplace
Community involvement
School conflicts
Household and family obligations
Unpredictable events
INTERNAL
Unrealistically high expectations for our personal performance
The need to do it all and have it all
Ineffective behaviors
Poor health habits
Negative attitudes and feelings