In order to be truly effective, Human Resources management needs to be embedded within an integrated framework of actions and policies that enable human talent to thrive. 

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This is a major time and resource investment, and is one of the reasons that companies, and especially start-ups, face such limitations to growth. 

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There are usually six operational elements to an HR system:

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1. A clearly-defined Business Strategy and Objectives that encompass the mission, vision and values of the company as well as the annual corporate strategy and specific corporate, departmental and unit objectives. It is important that every staff member understands these objectives, and that they are clearly communicated within the company.
    

2. The Business Strategy is drilled down into Unit, Team and Individual Objectives, usually set at the beginning of each year and updated every quarter. The Individual Objectives are dynamic: they vary from year to year. Implicit in these objectives is the individual’s potential for promotion and advancement.
    

3. A Competency Management System. In this context, competencies refer to the identification, development and use of individual competencies, or the mix of skills, knowledge and abilities which characterise outstanding job performance. Every staff member is assessed against the enterprise Competency Framework.  
    

4. 360° Performance Assessment System used to assess whether the individual has met or exceeded his/her Individual Objectives, and their current position on the Competency Management Framework.
    

5. A competitive and compelling Compensation System. This should include financial and non-financial compensation, and enable staff members to trust their employer sufficiently to unleash their best efforts in terms of creativity and performance. Strong compensation systems offer the chance of co-ownership. 
    

6. A Continual Improvement or Kaizen approach to HR, comprising both the system itself as well as the individuals within the system. At the individual level, continual improvement looks at the entire human being, rather than the narrower set of competencies. 

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This integrated approach to human resources management allows a company to identify and reward outstanding performance in line with corporate objectives.

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Two additional HR functions are required for continuity of operations:

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• Staff Retention, or the enterprise’s ability to retain successful staff while replacing staff which does not meet minimum criteria, and
   

• Career Planning, or the orderly advancement of careers and the replacement of key staff based on internal or external need.

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If you are an enterprise, start-up or public institution interested in reviewing your Human Resources Management System, please contact us for a confidential and non-binding discussion on how we can help.