Here, we will discuss 6 HR pillars every organization should be aware of when developing a
strategic HR framework.
Strategic Human Capital
Management (HCM)
Human Capital Management (HCM) is a set of practices that cover workforce
acquisition, workforce management, and workforce optimization and that
contribute to the overall productivity of an organization.
Human
Capital Management helps increase employee satisfaction, design better
recruitment and selection processes, develop employee engagement, improve
retention rates and return on investment (ROI), manage organizational
communications, and create an effective corporate image.
Strategic
human capital management is a people-centered approach to human resources that
unifies a diverse set of HR processes to act as one - from recruitment,
selection, training, development, and performance management to payroll and
benefits, to employee exit management and off-boarding.
A human capital management strategy identifies human resources and their capabilities to achieve organizational goals.
The human capital strategy is based on developing strategies and action plans to meet the organizational objectives and is supported by talent management systems.
With the
right HCM strategies, an organization can benefit from the most efficient and
cost-effective employee management processes.
Read more: What are the Advantages of Human Capital Management (HCM)?
6 Pillars of a Successful HR Strategy
For human capital
management to be effective, it is necessary to focus on providing the work team
with specific skills as the case may be.
Here are 6 HR pillars
every organization should be aware of when developing a human capital strategy.
1. Legal requirements
One of the fundamental
pillars in the management of human capital is the proper management and
application of labor laws.
The organization must
follow and fulfill all legal requirements to ensure that it protects the
business and the employee.
Being governed by the
provisions established by law will help maintain an adequate and linear
relationship with employees.
2. Employee engagement
Employee engagement is a
method in the workplace designed to improve employee feelings and their
emotional attachment to their job duties, fellow employees, and company
culture.
The more satisfied
employees are, the greater their commitment to the company, their sense of
responsibility, and their discretionary efforts at work.
Another of the fundamental
pillars in the management of human capital is precisely to generate that
empathy with the work team, which is achieved with actions such as:
- Incorporate contests and competitions for prizes.
- Promote performance recognition incentives.
- Reinforce positive attitudes.
- And listen to employees to help them solve problems.
3. Career development programs
Career development
programs are designed to retain and promote human assets, gain personal
insights into their strengths and development needs and navigate organizational
ladders.
Investing in people is a
fundamental task that every company must always take into account.
The professional
development plan for team members through training programs and career plans
helps to keep employees involved and committed to the work while progressing
personally and professionally.
Some ways to create
training programs include:
- The rotation of positions within the company.
- Internal and external training.
- And the strengthening of internal communications.
4. Corporate image
Corporate image is the way
in which a firm, corporation, or business enterprise presents itself to the
public. Maintaining a strong and positive corporate image is important to your
strategic human resource planning.
The Human Resources team
of an organization is the main institutional actor that must promote and defend
the image of the company.
Part of what makes Human
Capital Management effective is to constantly reinforce the vision, mission and
values of the institution.
In this sense, it is
necessary to put your best effort into how to reflect the objectives of the
brand, and in these times of digital changes, focus on reflecting the culture
of the company through social networks and branding campaigns.
5. Performance Management System
The performance management
system enables human resource managers to track and monitor the performance of
employees, departments, and the organization in general.
An efficient formula to
measure the quality of Human Capital Management that a company applies is the
use of HR software that helps to process all employee data in a comprehensive
manner, through a single platform.
This type of software that
can be easily installed can be used to:
- Complete job application forms.
- Recruitment efforts and follow-up of potential candidates.
- Digital archive of job profiles, performance history, and evaluation program.
- Digital system for calculating payroll, tax discount, and labor benefits.
- Easily accessible internal newsletter with the programming of events of interest to employees.
6. Employee exit management
Employee exit management
or off-boarding is the process that describes the formal separation between an
employee and the company through termination, resignation, or retirement.
When an employee resigns,
retires, or is terminated, the paperwork and formalities associated with the
employee's exit must go through a systematic process.
Offboarding processes may
include:
- Deactivating access rights and passwords.
- Transferring that employee’s job responsibilities.
- Conducting exit interviews to collect feedback.
Read Also:
Importance of Human Resource Management (HRM)