Many business owners think of Human Resources as "hiring and firing" or "that's just personnel isn't it?" However, We do HR strongly believes both roles are vitally important for the effective and smooth running of a business, but that there are two fundamental differences:
Personnel
The Personnel function (sometimes called "Transactional HR") deals with:
- Wages, holiday and sick pay, bonuses etc
- Recording of holidays and sickness
- Induction and training programmes
- Annual appraisals
- Recruitment processes such as CV filtering, application forms, interviews
- Dealing with disciplinary and grievances
HR on the other hand should be a strategic role working at executive level to make sure the right people are in the right place. It needs someone who understands executive-speak, and can justify the ROI (return on investment) of any training programme. A person who has business acumen, financial understanding and looks for solutions rather than adding to problems. Most importantly, the HR Director should be prepared and able to challenge the CEO or FD in the decisions they make about their employees. HR should therefore focus on:
- Performance Management which is forward looking, aligning the employee's future goals, targets and objectives with those of the business;
- Determining the cost-benefit-analysis and R.O.I. (return on investment) of training programmes and not just training employees for the sake of it;
- Explaining why re-training of key staff rather than redundancies is the right thing to do;
- Finding effective ways to motivate employees keeping them engaged and more productive
Contact We do HR Limited for a free no-obligation review of what your business needs on 0800 980 73787 or e-mail Alasdair Ross on aross@wedohr.co.uk
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