HR stands for ‘Human Resources’. It is a commonly used term in businesses to refer to the process of managing the people in your business in order to make money.  Many larger businesses have a HR team to manage this process, but even if you are a small business, it still relates to you, too. Because in reality, the ‘HR’ function is about managing people, so it is part of the daily tasks of every business owner or manager.

So, how does it work? Well, here’s a simple ‘HR Map’ that we at HR Gurus think sums up the basics of HR, and how it translates into profits for business. We want to show you what HR is, and also that it is not just a ‘cost’ to business – HR can add real value.

Recruitment – If we look at HR from a ‘cycle’ point of view, the first step is getting people in to your business – otherwise known as recruitment and selection. What is recruitment, you ask? It is finding the right person to fill a position.

Legal Stuff– For many managers and business owners, one scary part of having employees is the mountains of laws that relate to them. No matter where you are, the principles are similar – protect your people from harm (health and safety laws), and treat them fairly (employment and anti-discrimination laws).

Reward and Recognition  – Your ‘pay and benefits’ strategy should be set up to support three of the drivers in the HR Gurus ‘HR Map’, which are to:

  • Attract and keep the best people
  • Make sure they are performing
  • Ensure you are compliant with the legal stuff

Performance – Managing people to perform in your business is vital to your success and to increasing profits. In simple terms, if you do not give your people clear goals and context to their work, then your business is most likely missing out on some big opportunities.  Why, you ask? Because, to succeed (and really perform well) people need to understand what their role is (i.e. what they need to do) and how they contribute to the big picture (context!).

Training – Essentially, it is about coaching people and having conversations that help you learn why your people do what they do, and what their ambitions and goals are. Also, it is a tool to develop them further. Do you really know your people, and are they going to stay with you?

Have fun – OK, so here’s what is commonly known as the ‘HR fluffy stuff’! But to anyone who ‘gets’ the people part of their business, you will know that having a strong, positive culture is vital to your success. ‘Culture’ is about the behaviour, attitude, beliefs, values, and work ethics of your people (i.e., your business), so it makes sense that people perform better in a positive environment.

HR Gurus are excited about changing the business world, one company at a time, and we look forward to speaking to you. We can be contacted on 1300 959 560.

Written by Head Guru Emily Jaksch

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