Bonus programs are typically enacted that keep total compensation in line with market trends, regardless of the value of work warranting incentive comp. Training tools are often secured via the lowest-cost provider method with minimal consideration given to which provider would be most effective. Recruiting practices too are more often managed with the primary goal of minimizing cost, not enabling business capability/capacity. Regardless of the function you look at, in the typical organization, HR is more concerned with executing transactions instead of delivering productivity solutions.
If you believe as most should that the combined efforts of the human resource function should positively influence the performance capability of the workforce instead of hindering it, you should understand the factors that influence performance.
- A corporate strategy and plan that builds commitment — a competitive business strategy and strategic plan increases the chances that an organization will be successful and success builds commitment. In addition, if the plan and the strategy are clear and well communicated, not only will your employees be more motivated, but knowing the strategic direction will help them remain focused. Corporate values that are measured and rewarded can also align behavior and build commitment.
- A defined purpose for teams make roles clear — every business unit and team needs to understand its role. Managers and leaders need to develop a clear and communicated purpose that is both compelling and that makes members feel important. Understand that employees are more likely to be committed to the purpose of the unit or team if they are involved in creating it. An unclear mission will result in a lack of focus and a low level of “engagement” and commitment toward achieving it.
- Team and individual goals — having clear operational goals lets everyone know what is expected. If these goals are communicated and measurable, employees will understand precisely what is important and what is not. If stretch but reachable goals are set, employees are less likely to become complacent.
- Prioritization for impactful resource allocation — setting clear priorities helps to ensure that time and resources are allocated to the most important and impactful tasks. Employees must be made aware of both high- and low-priority goals, tasks, processes, and customers. Processes must be developed to ensure that resources are allocated disproportionately to high priority tasks.
- Performance metrics for continuous improvement — having effective metrics and reporting processes reinforces both team and individual goals. Because whatever is measured and reported gets done, metrics provide focus, feedback and result in continuous improvement.
- Effective rewards drive performance — when monetary rewards are tied directly to performance and the metrics for each goal, you doubly reinforce the message about what is important. Individual and team monetary rewards, coupled with nonmonetary excitement factors, can play a major role in ensuring focus and consistent performance.
HR Strategy sets the vision and the strategic initiatives of Human Resources to reach the goals given by the business strategy. The HR Strategy is not a document about the small adjustments in HR Processes, but it changes the HR approach in different areas of the business.