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Why good HR matters

In many of our previous blogs we have explored why every business needs good HR practices in order to be successful.

McKinsey & Company 1997 said:

“What distinguished high performance companies from the average performing companies was not better HR processes but the fundamental belief in the importance of talent”

So why do so many HR functions get it wrong? We think the answer lies within the below diagram:

At HR Gurus we believe there are 3 questions any good HR person worth their salt should be able to answer and they are:

  1. First who is your Companies core customer? Have you talked to one lately and do you know what challenges they face?
  2. Do you understand what your Company does? Like really understand? Have you spent time in each core area to get an in depth understanding of your clients and what challenges they face?
  3. Most importantly do you understand who your Company is? Intimately. Do you know what your company does well and not so well? And; do you know in detail the big picture strategy?

So what is good HR?

As we have mentioned in previous blogs, good HR is about being commercial, great HR is about helping the business drive its strategy by creating a performance driven workforce. Awesome HR is about creating an environment where people understand how they fit into the bigger picture, and in turn want to contribute to the success of your organisation!

The best HR people I have worked with are highly commercial business people who work with their client groups to help them get the best outcomes. It’s about being able to navigate the grey! HR is not black and white. You need to be able to balance what is best for the employee? What is best for the business? What does the law say? And what is the right thing to do morally? Somewhere in the middle is the right answer and at the end of the day HR people are “Advisors”. I always tell my clients this is what I recommend doing, these are the risks but at the end of the day it is your business, they are your employees so you need to make the decision yourself. Another way to engage with your clients is to ask them, what is the outcome you are looking for? Then start from there.

Structure and rules and policies are an essential ingredient in any effective business but there is a need for flexibility. HR people need to be practical and pragmatic in the approach to problems.

One of the key issues, HR practitioners face is that people do not understand the full complexity of HR, this is why I came up with a simple model to explain the key factors that exist so that non-HR people can understand what are the key areas I need to cover off to ensure I am managing my human resources effectively.

Essentially Awesome HR is about…

  • Imagine if you could have more people in your organisation achieving their personal KPI’s what would that mean?
  • What would it look like if everyone in your organisation were highly engaged and living your mission and values?
  • Imagine if EVERYONE in your business knew what was expected of them and how they fit into the bigger picture? What impact would that have on your bottom line?
  • Think about the impact this would have on the reputation of HR if we could quantifiably measure the impact we have on the bottom line? What would this do?

In summary

It’s about the right people in the right roles to get better outcomes for the community. HR should play a vital role in helping your organisation to be more successful. HR is not all fluff! It is a key driver in any awesome organisation!

If you need help creating awesome HR practices in your business then get in touch today.

Written by Head Guru Emily Jaksch.

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