HR management

Sink or swim: well-organized HR work also gives a smaller company a competitive advantage.

Airi Neemre
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Contents

Employees are the greatest asset of any company, upon which competitive advantage is built - but they are also one of the largest cost factors. Every business leader should think about on whether we are doing all we can, to preserve this investment and whether we are making the most of our employees' potential.

The rapidly changing world around us requires companies to be flexible and constantly adapt to the needs and desires of customers.

If we assume, that HR management practice can afford to ignore those changes and continue to operate by applying old-fashioned behaviors, attitudes, and solutions, then we risk of becoming a laggard in the labor market where adaptive organizations are buying up the best talents by offering modern work environment, development opportunities and excellent employee experience. To offer the best products or services to customers, one needs to keep up with the ever-changing market demands. The same applies to the organization and the working environment within the company to hire and retain the best employees.

Human resources management in a modern company can contribute to the company's success by providing functional and people-friendly processes and work-life design. This way HR can be a strategic partner that simultaneously creates meaningful value for the company, as well as a support unit that enables smoother adaptation to change. In a modern organization, the HR manager is an equally important partner to the business leader as the finance, sales or production manager. The HR Manager brings new practices, solutions and opportunities to the business and contributes to the growth of the company, by retaining and developing existing employees and attracting new motivated employees.

In large companies, personnel work is often organized at a such a good level, that smaller companies have a difficulty to keep up with. Systematically shaping corporate culture and well-organized HR management activities give many companies a competitive advantage both in attracting new employees and in motivating and retaining existing employees. It is true that it is not always reasonable or possible for a smaller company to hire a HR manager with extensive experience. In this case, the HR tasks are carried out by the managers themselves to the best of their knowledge or the operational and essential HR management activities are distributed among different employees. Sometimes it is assumed that hiring a HR specialist with less experience will automatically solve the bottlenecks related to the strategic HR management of the company. 

It may be difficult for a HR specialist with little experience or who has been hired to perform operational administrative tasks to, for example, lead processes that articulate management's desired values, organize HR operations according to best practices, recruit talent for specialized positions, lead staff development processes, or to conduct internal training.

HR services can be successfully purchased in exactly the quantity and variety that the company needs. To do this, the company manager only needs to involve and trust a partner from a suitable consulting firm.

Administrative view

The main reason for outsourcing HR work as a support service may be the desire to find more time to focus on the core business and to free oneself from extensive administrative activities and tasks that are not directly reflected on the company's revenues but are essential from the point of view of maintaining reliability and avoiding losses. At first glance, the goal of correct personnel record-keeping may be only to minimize the risks of the company and to correctly and timely fulfill the requirements arising from the legislation, but it is not only a necessity arising from the law. 

Correct documents and labor relations show employees, that the company treats its employees with respect, is a responsible employer and values its employees in the best way.

The service of a HR manager can include areas of operational HR management that are essential to any business, such as organizing and managing documentation related to employees, including the creation of employment contracts and job descriptions, amendments to employment contracts, and proper terminations. Within the HR service it is possible to create job postings and organize recruitment and onboarding of employees in a modern way to ensure the best experience for applicants and employees.

Talent management perspective 

It is the people that make a company. People's skills, knowledge, and desire to collaborate and contribute to the maximum are key factors in business profitability and sustainability, the weight that differentiates one company from another. Well-organized personnel work and a better regulated work environment have a positive impact on employee satisfaction and loyalty, supporting the sustainability of the organization and the company's performance. Within the HR Manager service, you can coordinate and conduct training, manage employee development activities, prepare work organization procedures, advise managers on labor legislation and HR management best practices, and perform all other activities that a HR manager would perform in a company. The HR service supports leave management, remote work policies and the management of employee engagement and well-being activities.

Adaptability of the service

Since no two companies are alike, the HR services are tailored to the individual needs and budget of each company.

It is necessary ta talk precisely about desires and needs of the company and depending on where the shoe pinches the objectives and activities of personnel work can also be determined. Even if there are difficulties in formulating the needs, an experienced HR manager can proactively contribute to the development of the organization by making recommendations based on best practices.

Cooperation agreement of HR services may be established on an hourly, daily, monthly or project basis. Sometimes the services of a HR manager are needed as a temporary solution when an existing employee has left the company, but the new person has not yet started. Sometimes, however, the HR manager or specialist at a smaller company may lack the experience to successfully manage a larger project.

Purchasing the service of the HR manager provides the company with uninterrupted service by ensuring the availability of a replacement and expertise even during the vacation, illness, or training of the HR manager providing the service. The company's direct and indirect costs associated with the employment relationship for wages, training, workplace and health checks are also eliminated.

Integration of expertise

Today's HR functions are specialized and governed by more laws and regulations than ever before. The HR service provider does its job effectively and efficiently, keeps its employees abreast of ever-changing laws, and helps mitigate business risks because professional service providers are guaranteed to be constantly trained to keep up with changing laws. Even by purchasing the service of a HR manager with a low volume of work, the manager gets the opportunity to involve an experienced HR manager as an expert and partner in his/her field, who also thinks about strategic HR management activities.

No company that values its employees should satisfy with poorly organized or disorganized personnel work. The success of any business is based on satisfied employees, a supportive and encouraging environment, and well-designed and well-organized procedures. 

Effective HR processes lead to engaged employees. Engaged employees enhance the company's performance and productivity, customer satisfaction, and corporate image. Engaged employees are a company's asset, creating quality through their actions, which becomes a competitive advantage. 

HR Manager service also provides managers of small or medium companies with the opportunity of well-organized HR work, which is a competitive advantage in the fight for talent.

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