The development and growth of a company can be very exciting. But putting together – and keeping, an effective team that will allow you to achieve your strategy requires careful thinking, planning and execution.
As businesses evolve there are five areas of HR that employers need to get right to build a high performing team and become a well-regarded employer.
Stage 1: Administration
- Companies that have a handle on their basic administration ensure that tax, superannuation and workers compensation paperwork is completed and filed – and that their people are paid correctly and on time.
- If your payroll system gets out of hand you’re going to hear loud noises from two powerful places – your people and the tax man. So you’ll want to make sure you get this right.
Stage 2: Compliance
Simply staying in the tax man’s good book and paying your people on time is a good start, but there are a huge number of HR compliance risks that all companies face.
- Companies that have a handle on their compliance obligations have effective policies in place to prevent against vicarious liability. Think occupational health and safety, anti-discrimination, IT and internet use, social media and drug and alcohol policies.
- These companies have employment contracts that meet or exceed minimum standards.
- Key processes like recruitment, performance management or termination follow established procedures that are in line with relevant industrial laws.
Stage 3: Structure
Every company made up of more than one person will need some form of organisational structure.
- This provides the foundation on which standard operating procedures and routines rest.
- Clear organisational or functional charts, position descriptions and meeting calendars make the workplace transparent and unambiguous and allow people to work productively together.
- A well-defined structure determines which people get to participate in which decision-making processes, and to what extent their views shape the company’s actions.
- The structure of your company should be appropriate for and reflect your strategy, culture and size.
To this point in the model, if you’re paying you people correctly, keeping on the right side of the law and are structured in a way that allows for efficient communication and decision making, you’re covering all of the basics.
Now it’s time to step things up.
Stage 4: Performance
Companies that evolve to this stage are taking a strategic approach to HR.
- Performance is a proactive stage that links people management to business strategy.
- A strategic approach to HR will drive engagement and productivity – key components include leadership, communication, recognition and employee development, training, remuneration and recruitment.
- Companies employ software and technology to streamline key HR processes and connect with their people.
Companies who work hard to meet the needs of their employees and get this stage right can cultivate a work environment conducive to high levels of productivity and engagement. Ultimately this leads to high performance.
Stage 5: Brand
Companies that have evolved to this stage of the model have typically got administration, compliance, structure and performance systems in place. They’re generally great places to work.
- Brand is about letting everyone else know how great – and unique – they are.
- Employer brand management, done right, incorporates every aspect of the employment experience which shapes the perceptions of existing and prospective employees.
- It supports the attraction and recruitment of the right kind of people that will help the company achieve its strategy.
- It effectively engages with its’ own employees and will retain its people.
So there you have it. Where does your company sit? Where do you want to be?