Why Human Resources Management is so Important in 2023

The way you manage your team will be the reason you succeed or struggle in 2023. Human Resources Management is so vital to organizations these days that top companies are spending a pretty penny to get the best possible managers with the best possible strategies and tools. The days of HR being an afterthought when it comes to an organization’s bottom-line, are over. As an organizational leader, you need to be equipped with the understanding of how improper Human Resources Management can hinder your team’s success and how, with the proper tools, you can become more successful than ever.

When was the last time you even audited your HR department or approach? When was the last time you made changes, not to the team, but to the way your team manages the people within your organization. Competitive compensation, appropriate benefits, employee appreciation events, team activities and simply showing your gratitude as a leader in the workplace each day are not “perks”, they’re the baseline for what employees expect in the updated working world. Are you truly doing your best to align your approach to HR with your team’s wants and needs?

Providing your team with everything they need to succeed doesn’t only benefit them. As an organization, it improves a multitude of functions that lead to long-term growth and success. It creates an environment that people talk about, even outside of work. An environment that makes current team members want to stay and outsiders want to join. If you’ve been involved in your organization’s recruitment at all over the past 2 years (or even currently), you understand how challenging it’s been to find new employees that fit your team and meet your standards. The best way to prevent yourself from dealing with a hiring problem, is to keep team members within your organization for as long as possible.

Focusing on employee growth and achievement by implementing a refreshed approach to Human Resources Management will ensure you spend less time searching for new-hires and more time focusing on optimizing your current team members and their processes. This is how all the top organizations build a culture of success. It’s common knowledge in the HR world that hiring is one of the most costly parts of running a business. Some researchers even say each new hire costs their organization roughly $17,000. You can’t afford to continuously welcome new employees onboard, even if you’d like to.

By focusing on your HR management strategies, you can ensure you develop the culture we talked about above. You can ensure your team members not only stay, but invite others to join. You can create a lineup of people that current team members believe will fit the organization, while saving time and money throughout the hiring process. Not only that, but you’ll have the choice, instead of the unexpected need, to hire additional personnel. 

A lot of organizations tend to believe they’re meeting the needs of their team, without actually stopping to think about the gaps they need to fill. The most common example of this is in smaller companies that have achieved substantial initial success. These companies commonly believe that the success they’ve had in the early stages of their business means that they’re doing everything (or most things) right and there’s no need to make substantial changes.

In some cases, they may be right. However, if you’re a business owner, you know there’s always room for improvement. What’s that famous saying? Short-term success is not an indicator of long-term growth? In life and in business, this almost always rings true. The organizations that get to the top and stay at the top, are the ones that run towards change instead of away from it. They’re the ones that are constantly looking for ways to improve and even spend money on entire departments to bring that change to life.

So, how can you effectively review and improve your human resources management approach? Here are a few easy tips to try out. They may not all work for you, but chances are you’ll see the benefits from at least one of them.

1. Create an environment where team members seek out change and areas of improvement. Challenge them to find these and discuss them with the team as a whole!
2. Develop open communication channels where your team can discuss areas of concern with your Human Resources department. Make it as simple as possible. This shouldn’t be something that takes up extra time for your team.
3. Improve current goal measuring techniques so team members can track and be accountable for their own success. When you can create and track your own goals, you’re much more likely to achieve them.
4. Focus on long-term growth over short-term success. Mistakes happen. When they do, are you focusing on how to fix the mistake, how to learn from the mistake, or both? If everyone makes mistakes, everyone should understand what is expected when mistakes are made and shouldn’t be fearful of the consequences.

A personalized approach to Human Resources can turn this period of adjustment into something that lasts and eventually becomes self-sufficient. When your entire team understands what’s expected of them and what they’ll get in return, you essentially turn your entire organization into one large Human Resources department.

Also, while costs are obviously one of the main focuses when spending time optimizing various departments, team efficiency is one way you can focus on reducing costs while at the same time building your team up and improving your organization as a whole. After all, an efficient team means less stress for employees and more time spent finding ways to grow.

It’s a common misconception in business that if you become too personal in a workplace it can lead to challenges and sure, if you cross certain lines that may be the case. However, your approach to Human Resources Management is one area you very rarely need to worry about that happening because employees expect personalization when it comes to HR. Human Resources is supposed to help employees deal with stress, grow as employees and as people, and make it easier for your team members to get their jobs done. You can’t do that without being personal.

If you’re looking to enhance your approach to HR, or simply struggling to audit your current strategy, message us on LinkedIn to find out how we can be of service! Also, stay tuned for more blog content in the future.