HOW TO INVEST IN HRMS TO IMPROVE YOUR COMPANY

 

HOW TO INVEST IN HRMS TO IMPROVE YOUR COMPANY

 

Regardless of the size of a business, investing in human resources can help you hire and keep the right people by your side to grow your business. If you have the opportunity to see more than 20 interviews with company presidents, you will realize that the vast majority of them (if not all) attribute their success to their employees. In this article we will see the ways in which you can invest in your people, for much less than you imagine.

Benefits of Investing in Human Resources

Higher performance

The studies show that happy people are more productive at work. A team of researchers at the University of Warwick found that happiness made employees 12% more productive than employees who weren't satisfied with their jobs. Additionally, they found that satisfied workers use their time more efficiently, increasing the rate at which they work. Therefore, providing your staff with extra benefits and attention will make them happier, resulting in higher productivity and better performance.

Best service

One of the hardest things when running a business is hiring the right staff. It's not just about finding the smartest or most skilled for the job. You need to find someone with the skill and the WILL to do the job better than 90% of the candidates for the position. According to Daniel Pink, you cannot buy a person's “will” to do a good job. You need to hire someone who believes in the mission and feels they can make a difference in the workplace. A partner or human resources manager can help you maintain discipline when hiring new staff, and will prevent you from falling into the trap of hiring someone because you simply "like" or share the same hobbies as you. When you hire the right way and create an environment for your employees to be successful, you will see that they will treat all customers or company stakeholders as if they were their own company.

Fewer employee replacements

Job satisfaction is not only related to higher productivity, but it is also associated with the rates with which employees leave a company during their first year on the job. Some jobs, such as call center agents, have turnover rates greater than 100%. In this case, some call center managers decided to let their agents work from home, which resulted in a 30% reduction in churn rate. Now, companies working in this industry do not need to replace their entire workforce over the course of the year, and are focused on training and supporting their staff.

These are just some of the main benefits of investing in human resources, although there are many others. However, the key question now is: what are the best ways to invest in human resources when you have a small business?

5 Ways to Invest in Human Resources

If you want your business to prosper, it's time to consider what you can do to make your employees more satisfied.

1. Retirement plan

A retirement savings plan is one of the benefits that employees most appreciate . Not surprising, since financial security means a lot these days. However, there are many options, so choosing the right retirement plan can be difficult.

 

There are basically 4 types of retirement plans for small business owners:

 

·         Simplified Employee Pension Plan (SEP IRA)

·         Employee Savings Incentive Plan (SIMPLE IRA)

·         Self-contained 401 (k) plan

·         401 (k) Plan (best for larger companies given setup, administration, fiduciary responsibilities, etc).

 

The first three are generally best suited for very small businesses with 100 employees or fewer. On the other hand, for a traditional 401 (k) plan, small and medium businesses can spend between $ 5,000 and $ 10,000 a year, but there are also some simple plans that cost between $ 500 and $ 1,000 a year. We recommend that you calculate the 401 (k) pricing plan yourself because it varies on many factors

Each of these four plans has different characteristics, such as the ability to cover employees, contribution limits, and administrative responsibility. To choose the right plan for your business, you need to understand the nuances of these plans and see which ones fit your priorities.

2. Training

Training is a great way to invest in the knowledge and skills of your workers. It's also a great way to express that you appreciate your employees - they'll feel like you hired them not just for their skills, but for their potential (even if you need to polish it up a bit). Today, there are many online courses that offer specializations in different areas and that are free or quite inexpensive. For example, on Coursera you can find business courses for free or starting at $ 29. Other useful learning platforms are Lynda (1-month free trial, then $ 21.99 / month) and Kutztown University of Pennsylvania (free).Also, for little or no money, you can organize short courses or in-house training, workshops and mentoring programs where the most skilled employees can pass on their knowledge and educate others.

3. More vacation time or paid time off

This is one of the benefits that ranks high in employee surveys. Free time renews your employees both physically and mentally, and is directly related to their job performance. Similarly, a pause provides workers with a new impetus in creative problem solving. View this as an investment in your staff's privacy and a contribution to their work-life balance. If you can't afford to pay during vacations and free time, you have alternatives: you can let your employees go home earlier on special occasions or when an achievement has been reached, or organize fun activities, such as happy hours after work or informal meetings.

 

 Not only will your employees appreciate your gesture, but they will also have the opportunity to interact with you and each other in an informal setting. This can lead to stronger relationships and even boost creativity. Do you need ideas? Organize a picnic at the nearest park, a family day out, or encourage everyone to participate in a darts or bowling competition.

4. Motivation and commitment

Regularly ask your employees for new ideas and comments, reward creativity and promote original thinking. The next great idea for your company could be brewing in the mind of the person you least expect!

 

Challenging your people is part of keeping them motivated. Support their personal initiatives, reward continuous learning, and highlight those with unexpected ideas. Like a child, the only way for your business to grow is by continually enriching and educating yourself. Organize friendly contests to see who sells the most, who gets the most leads or attracts the most customers. Don't forget to give the appropriate rewards!

And as we have already said above, when your employees are satisfied in your company, they will stay with you, so you will save time and money by hiring new employees. Look here some useful tips to retain good employees.

5. HRMS Software and Performance Management System

Small business owners tend to waste valuable time on administration tasks because they do not feel the need to replace their informal way of doing things (that is, a stack of documents in a cabinet) with a suitable software system. Is it your case? The chaos and boring, time-consuming tasks could ultimately take a toll on your passion and energy to run your business.

Consider investing in a good HR software solution, which can help you better organize everything and handle common HR tasks like record keeping, payroll, and employee performance management. With prices starting at a few dollars a month, this is an investment that pays for itself.

These are some of the key features that a human resources software for companies can offer you, among others:

 

·         Records. The software keeps copies of important records about your employees.

·         Benefits administration. Employees can sign up for benefits and manage their options from within the software.

·         Hiring. You can use the software to keep track of job applicants and manage the hiring process.

·         Training. Some packages allow you to plan the training of your employees, and sometimes you can even integrate the training into the application.

·         Free time and attendance. You can manage your employees' vacation requests to ensure you have adequate coverage.

·         Communication. You can broadcast important company news to your employees and allow them to communicate with each other through blogs, message boards, etc.

·         Self-service options. Your employees can log in and perform tasks like updating their details, requesting time off, etc.

·         Mobile access. The employees are entering your information to the system through your phone and record or upload information while moving.

·         Performance management. Tracking, reporting, and performance reviews are a key feature in any HR software. It will allow you to track the performance of your employees year after year, set new goals and objectives, and have access to their entire development history. Employees need defined roles and goals to stay engaged and motivated, but once those goals are set, it's just as important to check them regularly to ensure they are met. Knowing how your people are performing is a key component in monitoring the overall performance of your company.

 

There are many HR software solutions on the market - you'll have to do a bit of research to find the one that best suits your business needs and budget. BambooHR , Zoho People, and Unistal’s HRMmitra offer you free trials, so you can easily compare them before making a decision. 

 

We have suggested five ways to invest in human resources. But, above all of them, can you guess what is the best, and also the easiest, to improve your workforce? Just ask! As simple as it sounds. Ask your employees what they need to be happier with their work. You will be surprised and delighted to know that it is not always a raise. ¿ Maybe they want to attend a conference? Or do they need a well-deserved day off? Maybe some software or tools to make your work easier? You'll never know if you don't ask.

 

Successful Companies That Have Known How To Invest In Human Resources

Without a real case, all this remains in theory with statistics and recommendations. Now is the time to see the results of investing in human resources in practice.

CarMax , a used car retailer, invested heavily in employee programs during the 2008 recession. They improved their training and development programs. In addition, the CarMax company tapped into workers' ideas to improve its customer service, which was rewarded with the employee recognition program. As a result, sales increased 116% in eight years, or 14.5% annually.

 

Nissan is known for its use of a concept called "kaizen." Kaizen is a key Nissan philosophy that empowers the workforce to continually improve the way work is done. Nissan implements this philosophy by choosing each production worker. The recruited teams are the best in their class and each member is geared toward improving their skills to stand out from the rest. Human resource practices at Nissan include transparent salary explanations and full autonomy for leaders to recruit and build their own teams.

 

Google consistently ranks as the best company to work for in the world. What really makes Google a great place to work is the people. This company is more than an Internet giant: its Mountain View California headquarters offers a seven-acre sports complex, three wellness centers, indoor roller hockey rinks, and more than 100,000 hours of subsidized massages a year. Google's philosophy is that with the right tools, you can attract the best talent and develop happier, more productive employees. With these human resources efforts, Google's leadership is recognized around the world.

Don't be intimidated by the examples above. Your business doesn't need to be the size and magnitude of these three giants to follow suit. Remember that Google, the world's most famous search engine and a multi-million dollar company, was started in a garage by two young PhD students. Everyone has to start somewhere!

 

In Summary

Your employees are your most valuable resource, therefore, investing in them can have a positive impact on your business. Making your staff happy, investing in their skills and knowledge, helping them achieve financial stability and work-life balance will lead to higher productivity, higher quality service, and higher income. This is a long-term investment that requires a bit of effort and money on your part, but will pay off in the end.

You may be thinking the following: "What happens if we invest in the development of our employees and then they decide to leave us?" E n change, ask yourself this: "What if we do not, and they stay?"