Human Resource Risk Management and increase Employee Productivity

 

What is HR Risk Management?

Each and every organization is facing internal and external factors. As define, Human Resource Risk Management is identifying the problem within the organization and resolve them by taking proactive steps. Most of the time, one of the internal risks  arises within the organization is from employees who are working in that organization. This will happened due to the improper employee behaviors, improper employee management, skill shortage, poor financial management and improper employee management (Becker, Karen & Smidt,2016).

According to the international rating of 'Ernst & Young', human resources (HR) risks are among the ten most significant risks, occupying the 5th place among them, gaining three points within the last 3 years.

Importance of Risk Management

Whatever the size of the business Risk Management is a most important part any of the organization. Therefore, organization need to have a comprehensive Risk Management plan to achieve the success through Risks.

Employees are playing the pivotal role to get success the business and even organization have the best product or service, if they do not have the right employees, organization will not be able to succeed.

If there are any risks in the organization, a well-prepared business plan that utilizes risk management will minimize the impact of the risk to the relevant organization. And these impacts will be attack to the areas, reduced earnings, lost time, and even negative impacts on important customers and employees (A. Mitrofanova,2013).

With a proper HR risk management strategy, will help to deal with employees who make problems to the company, make good hiring decisions and help to better manage people.

Common HR Risks and ways for resolve them.

Stay Up-to-Date on Legal News

Did your state legislature pass a new law around family leave? What was the update or is there a update on what can be considered the reasonable accommodation for an employee with a disability?

Laws can be changed overnight and organizations need to be stay up to date. if not organization will be be at risk for a lawsuit or fines. Subscribe to local, legal publications, set up news alerts for employment law that make HR teams stay up to date.

Syncing with IT

Technologies are getting updated everyday and it may make employee more efficiency. But it need to be use carefully as it make new potential problems with security and commence.

For this, HR teams need to talk to the IT teams to get to know about the best way to keep devices secure. Educate employees to the correct way to share sensitive data that is tied to important client information.

Talent Acquisition

in the Staffing, HR plays a significant role. HR teams often handle recruiting, order background checks, and employees who get hired and who employers pass on. It is important to hire people and it must be done properly as it cause to unique risks if it not managed properly.

Improper resource planning could lead to understaffing related problems or even worse issues like overstaffing employees. Scrambling to bring in new hires or letting go of existing resources will make lot of problems.

Compliance and Regulations

HR teams should aware on complicated laws that surround employment. That is the reason it is important for HR teams to be aware of local, state, and federal labor laws and regulations to ensure that they’re compliant. 

In the company HR process need to be audited regularly ensure that HR team as compliant as possible.HR professionals who want to ensure that they are compliant with latest laws and getting updated should follow these important tips.

Build a Solid Recruiting Program 

When recruiting people to the company, it is better to have the right structure. It will help to right structure around recruiting could help drastically reduce some of the problems associated with bringing on new people. Allow and encourage employees to recommend people they know and make it easy for them to submit internal suggestions.

For mitigate the issue it is compulsory to focus on building a pipeline of potential contractors and direct hires. with that HR team reach out them, when there is a resource requirement.

Employee Development

Managers need to consider the growth and professional development of their employees.HR can ensure that everything is being handled properly.

Employees who feels like they do not have a proper career development process at the company, it will cause to the employee turnover. If they do not leave and stay, they could grow bored and complacent. Eventually, their work will suffer. 

For the organization prospective, employee growth is important fact as well as it is important for them individually. 

Happy employees who feel like they are growing, will stay at the company and provide their effort to make production properly. It will make customers happy. 

Give employees learning opportunities.

Lot of companies say that they are encouraging employee development and but they do help very little for the employee growth. It is not nice to let employees to let learn from out side of office hours and it is necessary to give them opportunities to grow at work.

Should give consideration to provide employees to set amount of hours a week devote to learning a new skill. Look for opportunities for online training courses or look for educational webinars people can use. Remember, employees can be an important educational resource of their own. Hold monthly lunch-and-learn meetings and encourage employees to do a quick presentation on an important topic.

These types of risks and solutions we can see organization wise. It is important to keep a proper Risk Management for increase the productivity (W. Cascio, J. Boudreau, 2014)

How does HR risk management increase productivity?

Proactive solution to a problem ensure that we have well prepared to tackle with any problem when it arises (Becker, Karen & Smidt, Michelle,2016).

HR Risk management helps to mitigate any risk at the organization which confirming the employee satisfaction and help employees to achieve objectives of the organization. Below ways will help to increase the employee productivity,

Trustworthy relationship between Management and Employees

Between the supervisors and subordinates bond is building by the trust and it is core element. It is a essential thing to creating a trust worthy relationship between the management and the employees. It allows employees to open up with management to their problems and manager are able to take the necessary action to resolve them. This increase the employee satisfaction and encourage to increase their productivity

Alignment with Organizational Goals

Mangers should make sure that personal goals of the employees are align with organizational goals. Mangers should address any goals that is faced by their employees and provide directions achieve goals of the organization. Once employee goals align with organization goals, they have a clear idea on vision and mission of the organization. Then it will motivate them to increase their work output.

Employee Motivation and Engagement

In motivating employees and increasing engagement, HR Risk management plays a important role. Leaders should adjust employees experience with the gaps which identified in employee engagement.

Managers can motivate employees by providing rewards like bonus and incentives. Further, employees should be given job autonomy that will aid in motivating them create an open environment that encourage feedbacks.

Conflict Resolution

Workplace conflict is one of the risk that impact to the organization's and employee's productivity and it will cause to increase stress and increase the employee turn over.

It is important to manage effectively any of the conflict in the organization. It is necessary to take proactive steps like collaborative working space and the formation of codes of ethics, which help in managing these type of issues.

Fair Evaluation and Feedback

When organization operations handle with with fairness, justice, and follows ethics, it boosts morale and a positive mindset, it leads to organization growth. Effective managers should provide their feedbacks to the employees regularly on their performance to ensure fairness. These feedback will help to employees to realize the areas they need to improve and this will help to improve the productivity of the company.

Conclusion:

Human Resource plays a essential role in the organization which ensure the proper functioning of the organization. Through a well prepared Risk Management plan, HR managers should take necessory action to reduce the impact of the risks. With proper steps which are taking for mitigate the risk will motivate the employees and will be increased the performance.

References:

“Risk management of the organization: Integrated model”, 2004. 

A. Mitrofanova, “The concept of HR risk management in work with personnel of the organization”, Kompetentnost', Vol.3, 2013. 

A. Levenson, "Harnessing the power of HR analytics", Strategic HR  Review, Vol. 4 Issue: 3, pp.28-31, 2005. 

A. Lopez-Cabrales, M. Bornay-Barrachina, M. Diaz-Fernandez, "Leadership and dynamic capabilities: the role of HR systems", Personnel Review, Vol. 46 Issue: 2, pp.255-276, 2017. 

Becker, Karen & Smidt, Michelle, “A risk perspective on human resource management: A review and directions for future research”,Human Resource Management Review, 26(2), pp. 149-165, 2016.

Becker, Karen & Smidt, Michelle, “Workforce-related risks in projects with a contingent workforce”, International Journal of Project Management, 33(4), pp. 889-900, 2015 .

W. Cascio, J. Boudreau, "HR strategy: optimizing risks, optimizing rewards", Journal of Organizational Effectiveness: People and Performance, Vol. 1 Issue: 1, pp.77-97, 2014.