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August 6, 2012 Know How

Five Ways To Do HR Right

I recently wrote a book about the business benefits of a well-run human resources program on the basis of an old cliché, "What I've learned over the past 25 years in employee benefits and HR could fill a …" In fact, a better understanding of HR would benefit any company, especially small- to mid-size businesses.

Today, the human resources department remains underutilized and undervalued. Many people think of HR as a set of protocols and guidelines. In fact, HR is the lifeblood of a company, the driver of key decisions that can have the most dramatic impact on a company's profitability and viability. Effective HR starts with these five essential concepts that every successful business can utilize.

1. State Why You're Here

Without understanding a reason for existing, no business can succeed. Neither can your employees. That's why mission statements have taken on a new level of importance and significance.

A mission statement should outline the organization's fundamental goals in the simplest terms. This is the soul of your business and why people work for it. If you don't have a mission statement, put it at the top of your priority list.

2. Hire Smart

Businesses cannot afford to hire the wrong people. It's that simple. Even one mistake can hold a company back for years. By planning hires well in advance and giving careful thought to more than the job itself, businesses can avoid this problem.

To "hire smart," a business must create a framework that depicts the ideal candidate. Before hiring, businesses must have a clear grasp of their culture and the department where the new hire will work. The next step is to build an evaluation process in alignment with the criteria. The ideal candidate must fit more than a need; that person should enhance the company. Write down the specific qualities and skills you need from a candidate, then use this to create a scoring system for the interview. Be sure to include intangible qualities like "team player," "detail oriented" and "sunny disposition."

3. Know the Law

Nothing can ruin your business faster than breaking the law. Today's regulations are so complex that it's difficult to keep track. Even small missteps like asking the wrong question in an interview can lead to embarrassment, fines or lawsuits. By establishing a system for compliance, a business can steer clear of trouble.

4. Communicate, Then Communicate Some More

Conveying important information requires effective communication. Be sure to share information that matters to employees, like company performance, "10,000-foot" corporate strategy, even sales figures regularly. There is no one way to do this, so be sure to hold face-to-face meetings, conduct group meetings, send emails and more. The more information you share, the more employees will buy into the vision and embrace the company culture.

5. Manage Change

Many changes are driven by the business marketplace — what competitors do, emerging technologies, and social changes. All can directly affect the core of a business model, whether slowly or with astonishing speed. To ensure survival, a corporate culture must embrace change as the norm, the natural evolution of business. This means thinking proactively and learning to anticipate change rather than react to it.

James J. McSweeney, a Stow resident, is founder of The CIP Group, a Cambridge-based provider of employee benefits, human resources compliance, and employee retirement planning. He's also the author of "I $ee the Benefit: An H.R. Treasure Chest."

Image credit: FreeDigitalPhotos.net.

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