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HR Best Practices

best hr policies in the world

HR best practices typically consist of employee communication, training and development, reward administration, cost reduction strategies and employee engagement activities bundled into one concept known as the ‘best practice approach’.

Employment security is at the top of most employees’ priority lists, as they want to feel assured they can go home after each shift and provide for their families.

1. Employment Security

HR policies offer guidance to employees and frameworks within which decisions can be made in a consistent manner, promoting equity among employee treatment. They can also ensure compliance with legal obligations and corporate governance issues.

Employment security is one of the key HR best practices, protecting workers against fluctuations in earnings or job loss due to restructuring or dismissal. This issue has become even more relevant with non-standard work arrangements such as temporary contracts, agency dispatched work, dependent self-employment or marginal part-time works becoming more prevalent.

Ensuring employees receive competitive remuneration and attractive bonuses is another essential HR practice, essential for attracting talent while motivating existing staff. Communicating pay-related updates through team updates, company emails, or other digital tools helps maintain transparency in this regard.

2. Performance Management

HR policies must set clear performance expectations and measurable goals for employees, so managers can provide ongoing constructive feedback throughout the year rather than only during an annual review meeting. This fosters employee motivation while early detection helps address any potential problems.

An attractive remuneration package can be an essential employee motivator, including competitive wages, perks and training opportunities. HR can assist employers in developing and implementing policies designed to attract and retain top talent.

HR should stay abreast of changes to labor laws to ensure compliance. Designating a point person to monitor new regulations and update policies can be effective ways of doing this, while HR software such as Darwinbox can automate this process and save both time and effort in its operation. Take a look at how BKP, Bina Karya Prima digitally transformed their HR processes!

3. Training and Development

Training and development programmes for employees is an integral HR best practice that ensures they remain engaged and competent in their jobs, as well as helping prevent workplace contentment and keep them motivated to reach company goals.

Establish a clear policy regarding drug and alcohol policies in your workplace. This should include providing clear guidelines for testing procedures as well as outlining parameters of confidentiality.

Businesses should implement and enforce a work from home (WFH) policy as another essential safeguard in light of the recent pandemic. A WFH policy should enable employees to telecommute when necessary to help prevent COVID-19 virus transmission, protect employee health and minimize its spread within an organization. It must be clearly communicated amongst all employees.

4. Reward and Recognition

Employee recognition and reward is an integral component of HR best practices, serving to both boost morale and increase productivity. Recognizing employees for doing a great job increases morale while also increasing productivity – this ensures your team remains focused and performing at high levels. Be careful not to confuse recognition with feedback or criticism, and provide your team with a fun motivation tool which won’t involve negative conversations!

Transparency is another integral element of HR best practices. By regularly communicating with your team through team updates, newsletters and company-wide emails, you can ensure everyone is on the same page and encourage open discussion about both positive and negative experiences, creating a healthy work environment.

5. Cost Minimization

Staying current with HR best practices is vital to employee happiness, yet sometimes difficult to do. With COVID-19 ushering in more flexible work-from-home policies as workers demand an improved work/life balance, it can be an uphill struggle keeping up with HR practices that remain up to date with these changing times.

HR teams must remain aware of these changes and incorporate them into company policies, but doing this manually can be an enormous burden – particularly with a global workforce. Therefore, for efficient procedures it’s wise to use global HRM software like Multiplier as this will automate hiring procedures, adhere to labor laws, and oversee global payroll all from one central hub – tools like these are becoming increasingly essential in international companies.

6. Kaizen

Kaizen is a Japanese word meaning both “good change” and “change for the better,” used as part of lean manufacturing by companies such as Toyota to reduce costs while increasing productivity.

Encourage employees to identify small changes that will increase productivity while decreasing quality issues that require costly product returns.

Employee morale will also increase as employees feel more appreciated for their contributions; this may contribute to longer employee retention rates for your business.

Kaizen is implemented through a series of steps such as showing respect and disciplining employees; everyone from assembly line workers to senior management is involved. Kaizen provides an affordable option for companies looking to enhance processes and increase efficiency.

7. Employee Engagement

Employee engagement is central to employee satisfaction and productivity. HR departments should use workplace environments that encourage collaboration and sharing of ideas as a way of driving employee engagement forward, and focus on building trust between employees and management.

An effective way to increase employee engagement is through providing opportunities for growth and learning. Today’s workforce no longer seeks out mundane work without any challenge; rather they desire developing new skills which will advance their career goals.

One of the key HR best practices is providing employees with an attractive compensation package that incentivizes them to continue performing at a high level, such as flexible work arrangements, private health insurance plans and paid maternity/paternity leave benefits.

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