As a business owner or HR manager in Australia, you know that effective human resource management is the be-all and end-all for the success of your organisation.
HR, or human resources, plays a vital role in attracting, developing, and retaining top talent, ensuring compliance with employment laws and fostering a positive work environment. This includes a broad scope of duties, including recruitment, training, performance management, employee relations, compliance, compensation, and administration, highlighting the comprehensive role of human resources in optimising organisational performance.
Let’s take a look at the 7 pillars of HR that form all this, and provide actionable advice to help you optimise your HR practices.
Pillar 1: Talent Management, Recruitment and Selection
This process is crucial for attracting talent and building a strong workforce. It involves identifying the need for a role, defining job specifications, setting salary budgets, advertising, screening, interviewing, and selecting the best person for the job.
When creating job descriptions, clearly outline the responsibilities, qualifications, and skills required for the role and how they fit into your overall HR hierarchy. During interviews, ask behavioural questions that assess a candidate’s past performance and potential fit with your company culture.
Once you’ve agreed with your hiring decision, it’s important to have a comprehensive onboarding process in place. According to a recent study, organisations with a structured onboarding program experience 50% greater new hire productivity and 54% higher engagement levels.
Pillar 2: Learning and Development
We recommend offering various training programs, such as online courses, workshops, and mentoring opportunities.
Meanwhile, encourage employees to take ownership of their professional development by setting learning goals and providing resources to support their growth.
Finally, integrating a learning management system (LMS) into your HR platform can significantly enhance your training programs by tracking staff training, formalising and monitoring employee progress through compliance or skills training, issuing alerts and reminders for uncompleted training, and generating reports for managers.
It also gives your staff a sense of accomplishment and the ability to upskill.
Creating a learning culture in your organisation can significantly impact employee retention. For example, Forbes recently reported companies with a strong learning culture have 30-50% higher retention rates than those without.
So, what does your business offer employees?
Pillar 3: Human Resources Department Performance Management
A good performance management system should support all HR practices and include regular check-ins, clear performance metrics, and opportunities for employee input.
When conducting performance reviews, focus on both strengths and areas for improvement. Provide specific, actionable feedback and work with employees to set development goals. Why? Almost 70% of employees say that receiving regular feedback is important to their job satisfaction.
Pillar 4: Compensation and Benefits
When designing your compensation and benefits package, consider factors such as industry benchmarks, employee preferences, and your organisation’s budget. Competitive compensation and attractive benefits enhance employee satisfaction, as they significantly influence morale and motivation in the workplace.
Some popular employee benefits in Australia include:
- Flexible work arrangements
- Additional annual leave
- Health and wellness programs
- Professional development opportunities.
Pillar 5: Employee Relations
Effective communication is essential for building trust and fostering a sense of belonging. Consider implementing regular team meetings, employee surveys, and an open-door policy to encourage open dialogue.
When conflicts arise, address them promptly and fairly. Give managers training on effective conflict resolution techniques and ensure all employees know your organisation’s policies and procedures for handling grievances.
Pillar 6: Legal and Regulatory Compliance and Risk Management
This is where the importance of the HR and human resources departments becomes evident. These departments are pivotal in maintaining positive employee relations by providing knowledge, tools, training, legal advice, administration, and talent management crucial to supporting and advancing the company. Some key pieces of legislation to be aware of include:
- Fair Work Act 2009
- Work Health and Safety (WHS) laws
- Anti-discrimination laws.
It’s important to have clear policies and procedures in place to manage HR risks, such as an employee handbook and regular training on topics like harassment and discrimination. Stay up-to-date with changes in employment laws and seek legal advice when necessary.
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Pillar 7: HR Technology and Analytics
HR software and tools can streamline processes, improve efficiency, and provide valuable insights into your workforce.
Utilising employee data within these systems supports administrative duties and ensures the maintenance of accurate records, which is crucial for HR analytics.
Some examples of HR technology used by Australian businesses include:
- Applicant tracking systems (ATS)
- Learning management systems (LMS)
- Performance management software
- Employee engagement platforms
In addition to technology, data-driven decision-making is becoming increasingly important in HR. By analysing metrics such as turnover rates, employee engagement scores, and training effectiveness, you can identify areas for improvement and make informed decisions.
This approach is essential for developing and implementing a robust HR strategy that aligns with the company's strategic objectives, ensuring the organisation's success.
Key Takeaways
- The 7 pillars of HR are crucial for effective human resource management in Australian businesses.
- These pillars include Talent Management, Recruitment and Selection, Learning and Development, Performance Management, Compensation and Benefits, Employee Relations, and Legal and Regulatory Compliance and Risk Management.
- By focusing on these key areas, businesses can attract, develop, and retain top talent, ensure compliance with employment laws, and foster a positive work environment.