Human Resource Management and Organizational Effectiveness

An interesting post by Jacques Groenewald

1. Introduction

"Organizational effectiveness depends on having the right people in the right jobs at the right time to meet rapidly changing organizational requirements. Right people can be obtained by performing the role of Human Resource (HR) function. Below is an outline and explanation of how to assess the HR functions of an organization by using HR activities in an architectural firm as an example. Human resource management (HRM), as defined by Bratton, J. & Gold, J. (2003), is

"A strategic approach to managing employment relations which emphasizes that leveraging people's capabilities is critical to achieving sustainable competitive advantage, this being achieved through a distinctive set of integrated employment policies, programmes and practices."

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Human Resource Vacancies

An interesting post by Silas Reed

A Bachelors Degree in HR or Masters of business administration in Human Resource is good for starting a career in this sector. Not just degrees, but personal skills owe a lot to one's success and achievements in the field. Before doing a Search of vacancies on job positions, go through the array of departmental proliferations that exist. This will help in clearing one's doubt about the responsibilities related to different positions.

The various positions related to the field are divided into two parts: entry level jobs and administrator jobs. For example, HR specialist jobs, HR manager jobs, HR executive jobs, HR clerk jobs, HR advisor, Payroll processor jobs, HR interim jobs, Payroll manager jobs, HR administrator jobs, HR generalist jobs, etc.

Entry Level Jobs:

HR Advisor Jobs

Generally the numbers of jobs in this position are quite high. An online search will provide vacancy of 150-200. This is because of the kind of work one is supposed to delegate while in the position. Not only does a human resource advisor assist in recruiting, but also help in the development of programs to increase productivity of various departments. Though it is an entry level job, it demands an experience of 2-4 years. The workload and pressure is also a negative attribute of this position.

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Benefits of Human Resources Administration Outsourcing

An interesting post by Christopher Walton

The benefits of human resources administration outsourcing are plenty. To start with, it brings about streamlined operation of the HR chores of your organization. Then, it also helps you concentrate your efforts and resources on your core tasks. This positively influences productivity and profitability while the more judicious utilization of resources, thanks to the PEO taking care of the HR responsibilities, leads to great cost savings and thereby increased profitability and sustainability.

HR Administration - Extensive and Resource Consuming

HR administration is quite a deep and extensive element of human resource management and demands resources and expertise of a substantially higher level. Companies, particularly small and medium sized firms, need to considerably part with their resources and manpower if they take care of HR administration on their own.

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The Evolution of HR Audits

An interesting post by Ronald Adler

Evolution is a process of change. Over the last 25 years we have seen significant change in the HR auditing process, the value derived from HR auditing, and the HR audit tools used. HR audits have evolved from a simple checklist of dos and don'ts or periodic affirmative action plans to a comprehensive, sustainable process that:

1) is an integral part of the organization's internal controls, due diligence, and risk management;
2) is a fundamental activity of strategic management; and
3) uses sophisticated auditing products and consulting services. Increasingly HR audits are conducted of HR rather than by HR.

This white paper reviews the changes in HR audits, discusses the external and internal forces affecting the process and use of HR audits, and provides information about the leading HR auditing process.

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What Role Does Human Resource Management Play In A Business?

An interesting post by William King

The human resource function has gone from the traditional hire and fire role to a strategic partner at the table with finance, operations and other business centers that are not centers of profit for the organization. The job of HR, as is the job of all such departments, is to ensure that the business gets the most out of its employees. Another way to put this is that the human resource management needs to provide a high return on the business's investment in its people. This makes it a highly complex function - because it deals with not just management issues but human ones as well.

These 2 polarities are not always easy to balance and the human resource managers specifically try to maximize output from employees by instituting various schemes and policies. The following are some of the functions handled by the human resources team.

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The Challenges of Human Resource Management

An interesting post by Alvin Chan

Introduction

The role of the Human Resource Manager is evolving with the change in competitive market environment and the realization that Human Resource Management must play a more strategic role in the success of an organization. Organizations that do not put their emphasis on attracting and retaining talents may find themselves in dire consequences, as their competitors may be outplaying them in the strategic employment of their human resources.

With the increase in competition, locally or globally, organizations must become more adaptable, resilient, agile, and customer-focused to succeed. And within this change in environment, the HR professional has to evolve to become a strategic partner, an employee sponsor or advocate, and a change mentor within the organization.

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What is Strategic Human Resource Management?

An interesting post by Rana Sinha

In Human Resource (HR) and management circles nowadays there is much talk about Strategic Human Resource Management and many expensive books can be seen on the shelves of bookshops. But what exactly is SHRM (Strategic Human Resource Development), what are its key features and how does it differ from traditional human resource management?

SHRM or Strategic human resource management is a branch of Human resource management or HRM. It is a fairly new field, which has emerged out of the parent discipline of human resource management. Much of the early or so called traditional HRM literature treated the notion of strategy superficially, rather as a purely operational matter, the results of which cascade down throughout the organization. There was a kind of unsaid division of territory between people-centred values of HR and harder business values where corporate strategies really belonged. HR practitioners felt uncomfortable in the war cabinet like atmosphere where corporate strategies were formulated.

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COMMENTARY: The role of HR Software Systems in 2011

Full article: http://www.hrmasia.com/resources/hr-tech-payroll/plugged-in/77533/

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Singapore - Experts say 2011 will see HRIS solutions that interact even more widely than today. Beyond simple connections between staff within the HR function, programmers and software developers are now working on tools that connect across functions, offices and even between regional centres around the world.

The question of delivery is also at the forefront of industry development. While for much of 2010, the focus was on “cloud computing” and software-as-a-service models, the search is now on for systems that provide this convenience and cost-efficiency, with greater data security capabilities.

Ari Kopoulos, National Sales and Marketing Manager, Employee Connect, agrees that talent management software is taking on a more holistic approach. He says the latest software is moving away from single module solutions. “These deliver a central framework of tightly integrated HR processes, such as recruitment, onboarding, learning, performance, remuneration and succession,” he says.

But it is when organisations are involved in merger and acquisition activity that the latest HRIS technology really comes to the fore. No longer, will changes in ownership structures mean lost data or complicated integrations on the technology front – at least according to developers. Lim says that is particularly good news for employees of target organisations. “They will still maintain their service years and entitlements,” he points out. Previously, it was easy to lose track of that data, which has such important retention value for the staff involved.

The end goal of all HR technology is twofold. Firstly, it should make the administration and processes of HR simpler and more effective. And secondly, it should give HR professionals access to more accurate and timely information on the state of their workforces. In this way, the perfect HRIS will give its HR department both the time to better strategise, and the data resources with which to make good decisions.

Why should employers and firms implement HR resource software systems? In this modern digital age, when technology is at the forefront of every business and industry, employers and firms may forget the true nature of technology as a business tool and overlook the usefulness of a strong HR system.

Software systems greatly help in reducing the roles and responsibilities of employers, in such tasks such as payroll management, employee promotions and course planning which can be all now undertaken with cooperation between the technological system and the employee.

This will greatly reduce the administrative roles the HR and management executives have to play in the company, thus freeing them up for other, more demanding work.

 In 2010, that was the concern: the systems should mainly help in such administrative roles, and be free from errors and time associated with lag that human administration would usually cause. The systems should also do tasks that would otherwise be cumbersome and difficult to arrange, such as courses planning and scheduling, and keeping track of employee progress and projects.

In addition, with the removal of troublesome and convoluted paperwork, employees can now rest assured that their data and years of service and credit would be lost with a transfer of hardcopy files or change in management. This is important because with the ever-changing landscape of modern business, a firm might change management several times, and it is important to maintain a record of employee contributions, which such a software system would do.

That had been established in the past year, and in this new year, things are taken to a new level because HR systems have to go beyond their basic capabilities and still remain efficient.

In 2011, the role of a HR management system is now much more complex: besides performing all these functions, the system should also be centralized. The system should preferably be a one-stop shop for all of an employee’s needs, and should be able to be quickly accessed with a few clicks. Besides being purely functional, it should also contain information and resources that could further an employee’s integration into the company. Standalone modular systems no more apply in this digital age; all of these modules should be collectively featured in one standardized system.

Of course, security and accessibility play major parts as well. HR systems need to have stronger data security capabilities, which is crucial in this age of sharing and networking. Information can be stored in various privacy levels, and be shared securely with fellow colleagues privy to such information. On top of that, these systems must have strong back-up support, such that an overload of users would not slow down the system or cripple its applications.

In this way the system will greatly aid employers and employees in their strategization and planning for the company’s future and growth.

Does your company already have such a HR technological system in place? How well is it working for the purposes of your company? What are the increased capabilities you would like to see with your HR software system in 2011? Share your thoughts!

COMMENTARY: Streamlining The Interview Process

Full Article: http://www.articlesbase.com/human-resources-articles/the-return-of-interviewing-4390959.html#ixzz1GgNVuYHO

Under Creative Commons License: Attribution

Asia - As the economy slowly recovers, companies are beginning to hire again.  Unemployment is still high and many job applicants have been unemployed for many months.  Since companies have not had robust hiring initiatives, their internal hiring skills may be a little "rusty" - not to mention new managers who may have not had thorough training or experience in hiring.  In this kind of environment, there's plenty of opportunity for error and costly hiring mistakes.  As companies begin taking applications and considering candidates, it's time to assess your hiring processes and the managers using them.  And the most important component in any hiring process is the interviewer.

There is no substitute for a skillful interviewer who understands your company's culture and the human characteristics that the job requires…no substitute! Managers seem to be always looking for the hiring panacea… the pre-employment test, the latest hiring process fad, the web based application center, or the high priced recruiting firm… but nothing can replace the benefits of a good interviewer.

            As the economy in Singapore picks up, and companies find themselves needing more staff to fill more demanding positions, employers will begin to source for new talent and to hold interviews to assess the suitability of such talent to take on tough appointments throughout the firm.

           

            The interview process can be a difficult and harrowing one. Interviewers often have to sit through tens, sometimes hundreds, of candidates, all showing veritable promise and all equipped with varying sets of skills, work experiences and education levels. Interviewers also have to ensure these future employees are able to fit into the culture of the company and have the appropriate knowledge and perception of the company to be able to contribute positively.

            It is therefore very important for interviewers to be able to reduce the hassle and trouble that may come with the interview process. Each interview should be, preferably, assessed with refreshed eyes, ears and a clean slate of a mind. Having to keep track of the various applicants can dampen the clarity of an interviewer, and it would also cause great hassle if the applicants were mixed up or confused with one another due to fatigue or administrative error.

            Since the whole world of HR, including payroll and course schedules, have already been digitalized, why not the interview process as well? Here’s the dream: a software system that allows interviewers to sort applicants out, into several piles, including but not limited to: ‘Pending/Awaiting Interview’, ‘Short Listed’, ‘Offered Candidates’ and ‘Rejected’.

             This system of classification would greatly reduce confusion for the interviewer. At one click, he can see the names of applicants awaiting their chance to impress and see the names that he’s already put together as a tentative list to consider for the necessary position. With another click he would be able to shift names from one list to another, and it becomes a lot easier to make the important decisions crucial to company growth.

            Additional functions would include being able to see the last applied position, qualifications and expected salary of all the candidates, set up against one another for easy comparison. Employers, especially those who belong in or are running small to medium enterprises, would be very mindful of such conditions of a candidate, and this would aid in the careful screening and selection process.

            Of course, these conditions are just one aspect of the whole interview process: the candidate must also show the drive, motivation and will to succeed and take himself as well as the company to new heights. Employers must also note these aspects, and to ease the difficulty of selection, employers can add in these notes to each application on the list.

            Finally, employers can view any vacant position with just a click – which would open up the database of all available job openings and show the candidate list, as well as necessary skills and qualifications needed, to fill those ranks.

            How would you streamline the interview process? As an employer, what do you look out for when you interview candidates? Share your thoughts!

HR and the Immigration Issue

An interesting post by T. F. Stables

IRCA (the Immigration Reform and Control Act) made it illegal for any employer to knowingly hire persons who did not have authority to work in the United States. My concept of illegal immigration and how that concept applies to HR and business is pretty straightforward. Each employer must verify identity and eligibility to work of every new hire. At that point, it seemed pretty obvious that the federal government was putting the monkey of illegal immigration on the back of employers...

I was fairly new to personnel work (what we called it in those days) when IRCA was enacted in 1986. I was working at a large hardware company (200+ people) in one of the mid-Atlantic states. We didn't really have a lot of "illegals" apply to work for the company. At least not that we knew about..., but there was a lot of gnashing of the teeth anyway. You know, 'the federal government's getting into our business, how can we operate with all these regulations', and so on. Because of the type of experience we required and the market we were in, it was unlikely that undocumented aliens would be a fit for our openings anyway.

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COMMENTARY: Foreign Workers' Levy Raised

Full article: http://www.hrmasia.com/news/latest-news/minimum-pay-raised/82306/

SINGAPORE - Minimum salaries paid to foreign white-collar workers and skilled technical workers will be raised. This announcement by Ministry of Manpower comes after recent hikes in foreign-worker levies.

            Managing payroll is a difficult task for all employers, especially those who are start-up bosses and have to manage a million other tasks besides employee pay. Such tasks may include contractual negotiations, product management, and research and development. It would only add to the stress factor if the employee payroll becomes an issue that is difficult to resolve.

            The first problem: There are many factors that influence payroll, including qualifications, prior years of experience in the industry, previous position held within the company and any promotions since then, as well as the reason mentioned in the article above, the citizenship status of the employee.

            Any or all of these factors could affect the payroll, and employees have to be clear on which factors add toward their monthly pay. The employer thus has to be very familiar with these factors and be able to keep track on the human resource throughout his company.

            Thus it is very important that employers have some form of system to ensure their employees are not overlooked, and that their contributions and work are fully recorded to ensure fairness in pay rewards.

            The second problem: How about time-based payroll? The time-based payroll is different from the monthly payroll in that an employee’s pay depends solely on his clocking in and clocking out of the system.

           

            This could easily create trouble if the system is unreliable, and the clock-in and clock-out functions are poorly designed, do not fully reflect on the hours an employee works, or if the system does not take into account leave days, or is difficult to access and maintain from the employer’s perspective.

            A time management software system, which combines the leave, time attendance and payroll functions, would greatly reduce such hassles, allowing employees to clock in and out easily, and also give employers the ability to check on employee attendance and pay him or her accordingly.

            This streamlined attendance system reduces errors, many of which can occur in the time-based payroll system. By implementing a joint-system that combines leave, attendance and payroll, it makes life much easier for the busy employer.

            The third problem: Government intevention. As seen in the article, especially in Singapore, the government may implement policies and laws to boost the productivity and labour market competency. It may be difficult to keep track of these changes in human resource hiring, so a comprehensive software system would help in establishing the minimum monthly rates for foreign white-collar workers.

As most employers know, foreign white-collar workers are often protected by their country’s own labor laws, and errors would not look good on the company and its reputation in the HR world, reducing its appeal to crucial foreign talent. To maintain competitive and relevant, companies – especially smaller ones – need to know how to stay on top of the game and be able to integrate all the new policies and regulations seamlessly into their payroll and HR management systems.

            How would you ensure your payroll and time attendance sheets are organized and well handled? Share your thoughts!

Human Resource Information System - HRIS

An interesting post by Steven Phillip Brown

Human Resource Information Systems

The purpose of this paper is to identify other companies who have faced similar human resources issues in regards to information technology. Through benchmarking different companies we can learn how other companies have handled certain human resources issues related to information technology, information systems, new technology, and data security. An overall analysis has been completed using research on IBM Europe, Ameriprise Financial, Terasen Pipelines, Shaw’s Supermarkets, CS Stars LLC, IBM, WORKSource Inc., and Toshiba America Medical Systems, Inc. This paper also includes eight synopses of companies facing similar issue to those in the reading.

New Technology

With the changing world and constant new technology that is available, managers need to be aware of the technology that will increase effectiveness in their company. Human resource information systems (HRIS) have increasingly transformed since it was first introduced at General Electric in the 1950s. HRIS has gone from a basic process to convert manual information keeping systems into computerized systems, to the HRIS systems that are used today. Human resource professionals began to see the possibility of new applications for the computer. The idea was to integrate many of the different human resource functions. The result was the third generation of the computerized HRIS, a feature-rich, broad-based, self-contained HRIS. The third generation took systems far beyond being mere data repositories and created tools with which human resource professionals could do much more (Byars, 2004).

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COMMENTARY: Key Hiring Trends of 2011

Full article: http://www.hrmasia.com/news/features/a-review-of-emerging-trends-in-hr-across-asia/82243/

Singapore - HR professionals with generalist and specialist experience – such as compensation and benefits and recruitment – were highly sought-after across major industries.

We witnessed a number of candidates receiving multiple job offers and organisations were compelled to re-evaluate their compensation and retention strategies in an attempt to retain their key employees. There was also a strong demand for HR contractors with project management skills due to a surge in M&A-related activities. In Hong Kong, HR professionals such as recruiters and change management/project management specialists were highly sought after.

As we expect hiring trends for HR to remain positive, the war for top talent will continue to be a challenge. Candidates will be selective in their choice of employers and seek more competitive salary increments and exciting career development opportunities. Organisations may end up paying a premium for top-tier HR talent.

We also expect the demand for junior HR candidates to remain strong due to the moderate attrition rate of Gen Y employees. As a result, the key focus for HR in 2011 will be that of talent development and retention.

       Many companies will adopt different strategies to retain talent, but it has been proven through many surveys and studies that the best way to keep talent is to consistently engage and challenge them, keeping them interested in the company and their job scope.

            Good companies that want to retain good talent will recognize the importance of making sure their professionals have mapped out career paths in the company that are supported by their employers and the administration.

As many employers or HR executives can attest to, mapping out a career path is easier said than done, especially in the cases where a young talented individual has just joined a company and is unsure of the mission, vision and direction of the company. He is unsure of what his job entails, and for the first year his work may not be as fulfilling as he envisioned, limited to mere filing, attendance at meetings, and picking up the skills needed to interact with his colleagues and other clients.

The employer will face difficulties in retaining talent if the talent is shunted to do filler work. It is important for the employer, then, to be able to keep track of the tasks of the new talent, and be able to send the talent for courses, training and upgrading, allowing him or her to take on additional work, be involved in new projects and to feel welcome and accepted.

This is essentially assimilating the talent into the company and fitting him or her into company culture. As headhunters continue to hunt to fill the popular positions across companies, the key aspect of retaining talent will be loyalty. And nothing will ensure loyalty than knowing their employers care about their career prospects, and that they feel their future in the company is cared for.

Hence employers need a good way to track the progress of their employees. In the old days, a simple paperwork filing system would suffice, showing the relevant data of employees, resume, industry experience and assets. However, with the increase in labour in the workforce, courses, seminars, and workshops have more than tripled to cater to demand, and projects and work assignments have become more complex in nature and execution. Often times it can be hard to keep track of an employee's progress in terms of achievements, skills growth and contributions to the company.

A good computerized system, in this modern age, would be vital to the employer's task at hand. What the employer needs would be preferably a software system that automatically logs attended courses and seminars as soon as they are registered and completed. It would also log completed projects complete with feedback, as well as peer and performance reviews as they are submitted each workyear.

It becomes so much easier for an employer to see how far his employee has come, how far he or she will go, and be able to guide his or her career into one that is successful and reciprocal to the company's growth.

How would you keep track of your employee’s performance in the company? Share your thoughts!

HR Trends for 2011

An interesting post by B. Laws

Reflecting on 2010, it was easy to notice significant changes in human resources. First we had Health Care Reform to address, and at nearly the same time, companies scrambled to put Social Media policies in place as issues arising from employees' use of social media began to spill over into the workplace. Now the question becomes, "What does the next year have in store for human resources?"

By looking at some of the trends over the last few years, we can make some assumptions about where we should be focusing our time as human resource professionals and what we can do to stay on top of them.

Overall, our workforce is aging. People are working longer for a variety of reasons, ranging from a fear that the Social Security benefit age will rise, to a desire to remain engaged in work they enjoy, to the reality that some face, following the economic crash that wiped out retirement funds. With the stock market's roller coaster, many folks are worried that they will not have enough time to increase or replenish the size of their nest egg, most of which is in a company-sponsored 401(k) plan.

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COMMENTARY: Keeping Track of Training

Full article: http://www.humanresourcesonline.net/news/24937

Singapore – The HR function at ABN AMRO is translating its talent plans into “concrete action” as the Dutch bank plans to double the number of private bankers it has in Asia within five years.

In order to help the business succeed in Asia, the HR function needs to establish the right corporate culture and focus on key areas such as workforce development. This is the advice Peter Schut, global head of human resources (HR) at ABN AMRO Private Banking, has for HR practitioners in Singapore.

“From there, you need to assume that you have your overall HR plan which includes your [organisation’s] business goals, and it is important to translate that into concrete action,” Schut said.

Schut said the bank has recognised that it has to “establish the highest standards of knowledge, skills and behaviours among private bankers” if it wants to “solidify trust and deepen” client relationships.

Schut said it was important to certify private bankers because it would help them better understand the financial delivery, culture and services they need to provide to clients.

            ABN-AMRO aims to meet customer needs with a dedicated, fully-trained and thriving team of staff. It’s a lofty goal, but an attainable one.

            Quality employee training should be a crucial aspect of every company’s expansion plans, especially for companies with a large client base, such as banks. In this day and age when many businesses are people-driven, HR managers will have to keep their employees on top of their game, with up-to-date skills and knowledge that helps them to rise above the competition in the saturated labour market.

            But mass-training employees is easier said than done. A common complaint of employees would be that such training opportunities are already uncommon. On top of that, when a course is planned and vacancies open up, they are snapped up quickly because of delays in relaying the information to the administration and the time needed to process the application forms.

            This makes mandatory employee training difficult, especially if there is a fixed quota of courses an employee has to attend each year, as there usually is in larger organizations. The sheer lack of accommodation in courses means many employees have to settle for courses they do not have an interest in just to meet the quota. This is unproductive and a waste of time, money and important human resource.

            To ensure employees meet company goals, and to establish trustworthy standards of knowledge and performance, there has to be a human resource software or system in place to allow employees to be able to attend courses and training programmes that train them appropriately and competently.

            Here’s the HR solution: a software system that allows employees to view company training plans, organizational needs, and a full schedule of upcoming courses that employees can sign up for without hassle.

            This would bypass administrative lag, cutting down on the mismatch between employees and training opportunities. Employees are given the power of choice, and it would prevent a bottleneck in registration, where eligible employees are shunted to courses they do not find useful and hence are unable to grow from them.

            On top of that, course outlines and objectives will be uploaded and included in the system, so that employees can prepare themselves for their upcoming courses.

            Along the way, employees are also able to consistently check in with their superiors regarding their progress. Using learning evaluation forms, superiors can assess how much their employees have learned, and to determine the usefulness of the course in upgrading employees’ skills and knowledge.

            This makes both employee and employer happy: the employee is given the opportunity to improve his performance, and to therefore be eligible for performance rewards, and he or she would also fulfill the mandatory quota for courses. Employer, on the other hand, would also be satisfied: successful mass-training of employees would mean one step closer to the thriving talent-driven company that would mean a world of difference to clients.

            How would you ensure your employees get the best training opportunities possible? Is there already a system used in your company to match the talent with appropriate, suitable courses? Share your thoughts!

HR Pitfalls For Small Business

An interesting post by By Scott Spjut

Just because a business is small - even a business of one - it doesn't mean all the demands and requirements usually handled by the human resource department disappear. It's vital for a business of any size to not succumb to common HR pitfalls, but especially those that may be unique to a smaller company.

It's okay to ask for help, especially when dealing with complex legal issues. Some local lawyers may be willing to guide you through a problem at little to no cost. And try to network with other HR professionals to take advantage of their advice and experience.

Keep meticulous records. You may not have fancy documents - mass produced by corporate - but you should create standard documents for your most common needs and utilize them. Take good notes when dealing with employees to be sure there is a record of what has been, and still needs to be, addressed.

Know the law. Each state is a little different, so take time to contact your local authorities to find out what laws may apply to your business and your employees. And be sure to stay updated on any changes that may take place.

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COMMENTARY: Retaining Talent In Companies

http://www.jarredconsulting.co.uk/images/retaining_talent.jpg


Full article: http://www.inc.com/nancy-mobley/2011-human-resources-small-business-outlook_2.html

USA – Sixty-nine percent of respondents reported that business conditions in 2010 showed an improvement over 2009 and 78% predict that 2011 will be even better.  So, the good news is, we’re moving in the right direction.  The question now is, what does this mean for employers and their relationship with their employees?

First and foremost on many employees’ minds is their pay… Do you have a rewards and recognition program?  Is it effective in showing the value of your employees?

As businesses turn the corner, recruiting will become a key initiative for many companies in 2011.  The survey found that 58% of companies have plans to add to staff and a whopping 93% plan to either retain or increase staffing levels… Being sensitive to the assimilation of new hires will set both them and the company up for success.  As with any new hires, you’ll want to make sure they’re properly trained in the specifics of their job and their department, but also the mission, values and strategic direction of the company.

Good news for small businesses in Northeast USA – after a period of trying times in 2008 and 2009, it would seem that the economic prospects for small businesses on the New England coast are finally looking up in 2011.

Retaining talent in the company is one of the toughest tasks of any HR or management executive, because good talent can’t be confined. Other HR managers and headhunters will hear about any rare talent sequestered in stifling companies, and if that talent is stolen, it might critically damage the growth of a company.

This is especially true in Singapore’s competitive industries, such as in the banking and financial sectors, where oligopolies fight for market share viciously, the labour market is small and in demand, and good consistent talent is all that differentiates one bank from the others.

Hence it is important that the talent is appropriately rewarded – with recognition in the form of monetary compensation or increased reputation and power. But while this can be easily achieved in large companies such as banks and airline companies, for most small-medium enterprises, it can be rather difficult to implement a performance appraisal system to distribute the rewards fairly.

More so, if there is an increase in staff as the business conditions improve and the business grows. It will become increasingly difficult to keep the new and old staff happy by compensating them equitably across the board. What are the criteria for rewards: e.g. established loyalty to the company, key performance indicators?

Criteria can be determined by a strategic information system, which would nail down the strengths and weaknesses of each employee, and allow bosses to tailor a suitable rewards system, with top tiers employees can realistically work towards with effort and training.

This will motivate them to make up for shortfalls and work harder towards attainable goals. Employees become clear on what is in it for them if they work hard and raise the profile of the company, and nothing generates loyalty better than if the employees feel that they have a vested interest in its success.

Small businesses work differently from large corporations, in the way that talent matters more to them, and yet these talents are also more likely to leave for greener grass: friendlier working conditions, bigger offices, better employee benefits, and more money, all of which such small businesses might be unable to provide.

Thus to prevent poaching, small businesses need to start being competitive in terms of providing a healthy working environment. They may not have the big rewards of big companies, but good software can easily make up for it by making top-tier performance easily attainable and hassle-free. By implementing a good performance appraisal system, employee benefits programme and resource setups, companies can make employees feel welcome, wanted and motivated.

As a HR manager, how would you retain your talent? And finally, is there already some human resource software or performance appraisal system being used in your company to distribute such performance-based rewards fairly? Share your thoughts with us!