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4 Human Resources Decisions That Affect Your Company

By business.com editorial staff,
business.com writer
| Updated
Apr 01, 2020
Image Credit: pressmaster/Shutterstock
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So many managers and business owners have said that their company's most valuable asset is their people that it's become a cliche – the good kind – that everyone knows to be true.

Many managers and business owners have said that their company's most valuable asset is their people. While that may sound cliché, each employee brings his or her own set of skills and qualities to the company dynamic. This can either be a good thing or a bad thing.

What are the duties and responsibilities of an HR manager?

According to Human Resources Edu, human resources managers

  • Develop and implement human resources procedures that apply to company personnel
  • Contribute to the development of the objectives, goals and systems of the HR department
  • Organize, plan and control the activities within the HR department
  • Implement company compensation programs and revise them as necessary 

Hiring decisions HR managers make that affect the company

Not only who a company chooses to hire important, but who is doing the hiring is also important. According to People HR, the following is a list of the types of decisions HR managers make that can affect the company.

Deciding whom to hire

When a new hire doesn't work out and either leaves voluntarily or has to be terminated, this can cost quite a bit of money. The resources spent on the hiring and training processes are lost, with more money going on the line to hire the next recruit.

These are not the only costs. Morale and productivity suffer as other employees must put their own work aside to cover the missing person's duties. If the terminated employee dealt harshly with customers, some of those customers may never return.

On the one hand, you can't hire someone just because you like them, only to find out they don't really have the skills and experience you thought they did. On the other hand, if you hire someone who has all of the necessary qualifications, other parts of the equation may be lacking. They may lack so-called "soft skills," including vital communication or people skills and may simply be a bad fit for the company culture.

Deciding how to hire them

In order to find someone who really is a good fit for the job, you need to make a set of decisions in order to set up a system that will find this person. If the hiring process is aimed at filling positions quickly rather than carefully, you may be hiring for the same job over and over. If your job listings are too generic and don't describe in detail exactly what skills and characteristics you're looking for, you may get bombarded with resumes from all the wrong people. The extra costs of using assessment testing or even hiring a recruiter may ultimately save money, especially for higher-level jobs.

Decisions about benefits packages

Another component of finding the right people for the job is offering the kinds of benefits that attract the right candidates. What's most important may depend on the demographic your employees fall into. For example, work-life balance is becoming more important to younger workers who appreciate flexible schedules and the ability to work from home.

But all candidates are interested in their personal bottom line, although they may be coy about it during an interview. Anything that can net them more money or save them some money is interesting to them. Offering health coverage has become standard, but employees, especially those with families, find value in life insurance. Holiday or performance-linked bonuses are also very attractive and can boost company morale. And don't discount the attractiveness of such seemingly little things as the annual company picnic.

Decisions about company rules

Company HR rules can make employees working lives either productive and smooth or disrupted and unhappy. In some cases, a work environment can be outright hostile to someone's well-being. A good employee manual clearly describes the company's rules for professional behavior. Putting the rules and the consequences for not following them into black and white lays the groundwork for a respectful company culture, and may even avoid some lawsuits down the road.

Decisions about company fraternization rules need to be made with special care. While romances between workers and their superiors can have destructive consequences, not all office romances do.

Human resources decisions will affect your company at every level. Taking all related decisions under careful consideration can only improve both the company's culture and its balance sheet.

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business.com editorial staff
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