In recent years, people worldwide have noticed the vast changes in the business landscape. From the work-from-home setup to the increased adoption of digital means of trade and communication, most of the companies are forced to transition to survive in the new normal. What’s more, a global talent shortage, better known as the ‘Great Resignation’, has impacted a lot of organizations and how they look for the right candidates to fill in urgent and key positions.
Now more than ever, the role of human resources (HR) can make significant contributions to support the company in these trying types. HR will play a vital role in re-establishing and strengthening the corporate culture and driving employee productivity.
In doing business, excellent talent strategies could also mean better chances of improving the bottom line. Thus, to help you navigate smoothly in 2022, here are the top eight HR mistakes to avoid.
1. Flawed Hiring Practices
One of the mistakes companies need to avoid in 2022 is continuing their flawed hiring practices.
The role of HR begins from planning, talent selection and acquisition, retention, up until employee exit. Zooming into the talent selection, some companies, even before the two-year global lockdown, do not prioritize improving their hiring process and stick to their old-school ways. These organizations continue to post inaccurate job descriptions, never consider internal hiring, hire too quickly, and prefer the arduously long yet mediocre style of interview and testing.
With the ‘Great Resignation’ happening, it is beneficial for companies to fill in the gaps and improve their hiring style to attract high-quality talent better. Since recruitment is the first touchpoint of a potential employee, it is best to keep up with new trends and improve obsolete parts of the hiring process. Remember that first impressions also last, so you want to keep interactions with potential candidates positive, engaging, and memorable, albeit sometimes short.
2. Outdated HR Systems
In any organization, HR is one of the departments with time-consuming administrative duties. HR teams who spend most of their time doing admin-related tasks have lesser opportunities to create programs and strategies to improve employee engagement and efficiency, to say the least.
Thus, using outdated HR systems is another mistake business entities should avoid in 2022. Sticking to antiquated HR management tools increases the risks of human error, compliance issues, and even decreases productivity.
To avoid these pitfalls, you may want to use an HR software system to lighten the workload of your department. HR software systems basically automate and streamline labor-intensive processes such as absence management and performance reviews. Moreover, newer systems also feature employee self-service HR facilities to save time and are accessible through mobile, making them more accessible to HR teams whenever and wherever they are.
Instead of spending hours on paperwork and using manual processes, your HR teams can now give their full attention to high-priority matters without sacrificing accurate data management and the risk of non-compliance.
3. Bad Hires
A person hired for a job with talents and skills that do not match the position can cost businesses a significant amount of money. In addition, it is also crucial to assess how well they can fit and adapt to the company culture. Loyalty to a company is nurtured through mutual respect; thus, someone who doesn’t believe in an organization’s vision and mission will be more of a liability rather than an asset.
This 2022, it is important that your human resource teams ensure that each employee- whether new or old- contributes to maintaining and fostering great company culture. Aside from skills and technical capabilities, a candidate’s personality and character should be kept in check as these directly impact the morale and productivity of their co-workers or team members.
How then can candidate selection be improved? Revamping interviewing styles and employing pre-employment assessment tools can help companies steer clear of hiring unfit candidates.
4. Substandard Onboarding Practice
Gone are the days that onboarding new hires means having them sit down at their desk and handing out a manual for them to read and memorize.
New hires should be adequately acquainted with your organization. This includes having the proper tools and equipment prepared and set up, them being introduced to superiors and other important members of the company as well as having them familiarized with the facility and systems they will use day-to-day.
Nowadays, onboarding practices should be taken up a notch, especially for organizations whose new employees are working remotely. Regardless of working on-site or off-site, HR teams should come up with better strategies to make new hires feels more welcome, included, and excited for their new position. Through these simple actions, they will be more at ease and feel the support of the company.
5. No Employee Engagement
Another mistake you will want to avoid is the lack of employee engagement. Aside from just earning a good salary, more employees nowadays care about and look for more benefits since most of their time is spent at work than with their families. However, this part may be a bit of a challenge, especially with the hybrid and work-from-home work setup followed by some organizations.
Employee engagement activities like team lunches, employee spotlight, and mental health days strengthen the connection between the company and its employees, resulting in higher retention rates. Aside from these, it is also beneficial for your organization to look into their health and well-being, so they feel inspired and motivated to work. Thus, improving their efficiency and productivity.
Remember that when you make employees feel heard and appreciated and are given opportunities for personal growth, loyalty within all ranks is cultivated.
6. Vague Compensation and Benefits Structure
When it comes to finding and staying in the job, the amount of salary an employee makes matters. One of the mistakes of companies is implementing a vague and unstructured compensation and benefits plan. Why is this important? When employees keep expecting and receiving a random pay raise or benefit every year, some may feel that there is no security within the company. This may encourage them to leave and look for opportunities with your competitors.
Thus, it is vital to create a structured salary plan from day one and consider a salary cap for each position to prevent the company from overspending, and more importantly, manage their expectations better. Having this structure will also ensure that the company’s compensation and benefits program are both competitive externally and equitable internally.
7. Subpar Leadership Development Training Programs
One of the costly mistakes one can make as an HR is to put untrained managers to lead departments or groups. Positioning an untrained manager may create gaps in employee needs and put the organization at risk by acting and making decisions out of ignorance and lack of situation analysis.
By having well-designed leadership training programs and offering them to employees who exhibit leadership potential, the company will have better decision-makers, thereby shaping and securing the future of the organization. More so, rolling out these development programs enhance employee engagement and promote a positive work culture.
8. No Business Foresight
Another role of HR is a business partner. This means crafting programs and initiatives that align with the goals and vision of the company through talent sourcing. By crafting programs and initiatives that look into closing the gaps inside the company’s operations, HR creates a significant impact in mitigating business costs, ensuring business continuity, and decreasing turnover rates; thus, elevating company culture in the process.
By becoming a proactive partner, HR can assist business leaders in resolving anticipated issues and responding quickly and effectively to market threats through the workforce.
Having a business foresight also allows HR to craft solutions aligned with the company’s core values even before any problem develops and harms the reputation and productivity of the organization.
It may not be that obvious to everyone, but one must think of HR as the heart and employees as the lifeblood of a company. Hence, how the department is run can influence and impact the entire entity.
In this VUCA world and with the vast changes in the business landscape, companies should avoid these top HR mistakes to ensure that the organization can thrive and survive in the new normal. Like in other parts of the business, your human resources teams can also benefit from technological adoption and upgrades as well as veering away from some traditional thinking, systems, and processes.
As previously mentioned, HR will be the first and last touchpoint of an employee, so making and leaving a positive impression is paramount.