As I am sure we are all aware, a key role of HR is to monitor employee performance with the aim of maximising a company’s efficiency and profitability. In fact, according to a recent PwC HR Survey, 97% of businesses use a formal performance management program. That being said, HR departments themselves should also understand the need to have their own effectiveness monitored for exactly the same reasons.
 
Of course, it can be difficult for companies to tangibly measure the effectiveness of its HR, especially as the department deals with so many areas of the business. Consultancy, payroll, holidays, sick pay, auditing – there is a vast array of everyday aspects of a business which are controlled by HR, making it really tough to monitor. In addition, with the role of HR continually adapting and updating due to new technologies and workplace demands, measuring HR performance is becoming increasingly more taxing. The reality is, when it comes to measuring HR success, companies don’t know what to look for.

While it would perhaps be too time consuming, costly and unrealistic to analyse and evaluate all aspects of HR, here are a few areas to focus on to see how your department is getting on and where it needs to up its game:

Employee Retention
 
Without doubt one of the biggest measures of HR success is employee retention. Retention rates go to show that hiring techniques are working effectively and HR is helping to find the right fit for the organisation. They also go a long way to indicating employee engagement and happiness in the workforce – after all, the happier the employee the less likely they are to jump ship. What’s more? Employee retention is easy to calculate and can be done regularly, even on a quarterly basis, without the need for too much manpower.
 
As job-hopping becomes more and more common, particularly amongst millennials, the hallmark of a good, strong company might just be how well it holds on to its current talent.
 
Promotion
 
Again, a crucial role of HR is both training and developing staff and providing them with transparent career paths. Therefore, a high number of annual internal promotions would suggest strong employee development within a company and prove that HR’s role in training and mentoring is helping staff climb up the career ladder. Granted, promotion is not solely down to specific staff training programmes but there is no doubt it is an indicator of overall internal company development that is, at least partly, influenced by HR initiatives.
 
Employee Satisfaction
 
While promotions and employee retention are relatively easy to calculate, employee satisfaction can be a little trickier. One of the most effective ways of measuring the happiness of your workforce is by offering your staff a satisfaction survey. Surveys that can be done in private tend to glean the most reliable results, as employees are not put under immediate, face-to-face pressure to respond.
 
As HR is responsible for day-to-day operations in an organisation – managing everything from payroll to mediation to disciplinary action - employee satisfaction is a good measure of the effectiveness of a company’s HR department. The age old saying, a happy worker is a productive worker, is certainly true and HR plays a big role in ensuring this is the case.  Listen to your employees, ask them what they think, and ensure that line managers understand the need for constant feedback from staff – it’s the only way to really know if a company is on the right track internally.
 
Company Culture

As I have highlighted in recent blogs, HR is playing a vital role in creating a strong company culture in business. Companies that exude a strong company culture highlighting values of fairness and equality tend to see improvements in talent acquisition and retention. HR is essential when it comes to promoting this company culture and ensuring that all employees are on the same page.
 
Company culture, however, can be even harder to evaluate than employee satisfaction.  Holding values such as openness and transparency high within a business, promoting diversity initiatives, ensuring there are no gender pay gaps - these are all measures companies should be taking to harness a strong company culture. Clearly therefore, increases in employee retention and acquisition are good indicators that a business has a strong company culture that HR is effectively promoting.
 
While they may be costly or time consuming, measuring and analysing successes and failures in HR, or any department for that matter, are always worthwhile tasks. The trick is to ensure that the business elements which are being measured and built upon will ultimately add value to the overall strategic aims of the business. After all, we can’t improve on what we don’t know.
 
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The skills shortage is an issue that worries both employers and employees. In fact, just last year research suggested that chief executives were more concerned about the skills shortage in 2016 than at any point in previous recent years. Undoubtedly the shortage of skilled workers, especially in the IT and technology industry, is having a negative knock-on effect for many organisations as more and more companies look to digitise their business processes. Equally, prospective employees are becoming less sure about what skills they need to bring to the table in order to be of most value to a company.

So, what measures can employers take when talent supply isn’t meeting the demand for skilled workers? Here are a few ways to help companies stay afloat while navigating their way through the current skills shortage:

1. Training and Mentoring

One effective way to tackle the skills shortage is to offer training and mentoring programmes internally for current employees. Companies may find that rather than having to hire new workers, an employee in your business who has been given training and development may be well, or even better, suited to a vacant position.

Offering IT and software courses for employees, for example, is a very effective way for companies to streamline their processes and reduce the need to hire externally. Internal staff development can negate the need for costly and time-consuming hiring processes.

2. Look Abroad

As an employer, it’s always important to broaden your horizons when it comes to hiring. Irish employers should look for top talent across the EU and take advantage of the freedom of movement and work for all EU citizens. The geographic distance between employer and prospective employee shouldn’t put a company off hiring foreign talent – the process can be easily conducted over social media, email and/or video call. Finally, many employees may be attracted by the idea of working abroad and can bring different perspectives and knowledge bases to your company.

3. Outsource
 
When a company needs a specific job done quickly and effectively, often outsourcing can be the best option. Outsourcing talent allows for a relatively speedy on boarding process and if you do it right, the contractors should already have all of the necessary skills for the task at hand. While it is not advised in all situations, outsourcing can be vital for a company to quickly increase its manpower, again without going through the expensive, lengthy and often difficult hiring process.

4. Don’t ignore Millennials
 
Let’s face it, there can be a stigma when it comes to millennials. They don’t get out of bed in the morning, they are too distracted by their smartphones, they need constant gratification – these are all examples of stereotypes that give millennials a bad reputation. However, it is crucially important that employers don’t overlook the talent and ability of millennials in the workplace, especially when it comes to tech and IT. Ignoring one demographic of workers because of unfounded stereotypes would be very wrong. I say take advantage of the skills of the youth – you may find they bring more to your company than you expected.

5. Outreach 
 
With a huge skills shortage and the war for talent raging on, reaching out and communicating with prospective employees has never been more important. Luckily, with social media it’s becoming more and more simple to keep in touch with top talent. That’s not to say companies should be constantly on the lookout to poach employees, but keeping in the loop and up-to-date with the best in the industry might just pay dividends in the long run.
 
6. Remain Optimistic
 
Finally, just like recessions, skills shortages come and go. While times may be tough at the moment, keeping a cool head, making the most of your current employees and keeping a keen eye out for new ways to attract talent are sure fire ways to help a company through the current skills shortage. As an employer, remember that there is always a light at the end of the tunnel – and make sure your staff can see it too.
 
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Many companies are evaluating the role of HR in their organisation. With businesses constantly striving to keep up to date with new technologies and battling the skills shortage, HR departments are finding themselves in the spotlight more and more. For some businesses, this means increasing HR’s role within the organisation, especially at a senior management level. In fact, according to the Great Place to Work HR Trends Survey 2017, a massive 82% of HR professionals cited that the credibility and influence of the HR function in leadership had increased.
 
So how important is HR when it comes to company leadership and how can HR professionals positively influence top-level management for the benefit of a business as a whole? Here at the HR department we have come up with 4 crucial ways HR can and should be contributing to leadership:
 
1. Strategic HR  
 
Making sure HR is well versed in the big picture aims of the organisation is vital, especially as it’s the department responsible for hiring new workers. Traditionally HR has been criticised for being too focused on the day-to-day operations of a business and therefore accused of lacking strategic vision. Ironically, it may be precisely due to a lack of HR representation at senior management level that HR as a department isn’t fully aware of, or up to speed with, a company’s overall goals.

So, in order to gain full insight into a company’s ethos and aims, and to help drive a business forward in the right direction, HR professionals need to have a seat at the top table. This will ultimately develop the skills and knowledge of HR staff while making sure all employees are in line with company objectives. 
 
2. Act as Role models

There is no doubt that HR, as a department acts as a role model for the rest of an organisation. Often responsible for disciplinary action, payroll and making sure workers abide by codes of conduct, HR professionals play a vital role in workplace management.
 
In this sense, it is also HR’s role to keep senior management in check, even if that means HR professionals being unpopular with leadership. In order to effectively carry out this task, and act as somewhat of an intermediary between senior management and the rest of a business, HR must have an influence in the C-suite. Not only is this important internally, it also helps to portray a company as being one of openness and fairness and employees may appreciate HR taking up a mediating role throughout a company.
 
3. Company Culture Creators
 
More often than not we are seeing how HR can help to create and uphold company culture. A strong company culture is vital when it comes not only to attracting new talent, but also holding on to your best workers. HR, through mentoring, training and development, for example, can help to harness a company culture that encourages and empowers workers - ultimately making them happier employees.
 
Company culture greatly influences how your business runs on a daily basis. From flexible working hours to maternity leave to promotions – all of these details, managed by HR, are very important for harnessing a great company culture. Senior management in an organisation should recognise this and give HR the appropriate role in leadership to facilitate the enhancing of company culture throughout a business.

4. Key to Employer Branding

Continuing on from company culture, HR plays a central role in diffusing and promoting an organisation’s brand externally. In fact, when asked what department was most responsible for employer branding in their organisation, 42% of those in the HR Trends Survey 2017 cited the HR department – 12% greater than even the marketing department.
 
Effective employer branding helps to ensure that companies find suitable and talented workers which saves time, money, effort and improves employee retention. Undoubtedly, employer branding, along with talent acquisition and retention, is even more effective if it is done collaboratively between HR and senior management. Teamwork in this area between HR and management increases the ability to spot top talent early and assess the abilities of prospective employees, while ensuring businesses find an employee who is the right fit for the organisation.

Giving the HR department more of an influential role at senior management level clearly has its benefits. The reality is that many of the current weaknesses of HR departments stem from the disconnect between HR and leadership within an organisation. Bridging the gap between HR and senior management is a mutually beneficial undertaking that will result in a more productive, strategic and forward thinking business.
 
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As I stressed in a recent blog, workplace diversity is absolutely essential for business. Importantly, employers must be aware that with an increase in diversity comes an even greater need to both monitor and combat workplace discrimination. Of course, the Employment Equality Acts 1998-2015 outlaw all kinds of discrimination, from age to race to disability, to name but a few. That being said, one particular area of concern when it comes to workplace equality is the fact that the gender pay gap in Ireland has widened over the past 5 years.
 
According to a recent report there was a 14.8% difference in median pay between men and women in Ireland in 2015 – up from 8.3% in 2012. This is a very clear example of discrimination and is something all employers should be aiming to eradicate. Recently, in a case involving Google, the US Labour Department (DoL) has accused the global tech company of ‘extreme’ gender pay discrimination. According to reports in the press, Google continues to deny the accusations and has repeatedly refused to hand over the data regarding its compliance with US equal opportunities law.
 
In light of the ongoing Google case and the Irish pay gap statistics, I’d like to return to some of the key issues around how employers can combat and overcome the gender pay gap issue while promoting equality and fairness throughout their organisation.

1. Compliance
 
It is of paramount importance that employers strictly adhere to the rules regarding equality in the workplace laid out in the Employment Equality Acts 1998-2015. The legislation was created to protect the rights of all workers, and includes a specific section on compulsory equal pay for like work. In the case of Google, despite being legally required to allow the US Labour Department to inspect their records, the company has refused to provide the information, claiming it would be a violation of employees’ privacy.

Obviously valuing employee privacy is hugely important, however companies need to ensure they are forthcoming with legally required equality information in order to avoid potentially costly litigation battles, like the one Google finds itself in at the moment. Furthermore, it’s essential that employers are aware that a claim filed by a member of staff for unfair work practices to the Equality Tribunal can lead to an order for equal pay and up to three years of pay in arrears. Better to comply than to be subject to legal battles which could harm a company’s reputation as much as its finances.
  
2. Transparency
 
Speaking of reputation, refusing to provide information and statistics on matters of equality in the workplace certainly has the potential to raise eyebrows. A company that gives the impression it has something to hide with regard to equal pay comes across as suspicious and this can negatively impact upon employer branding. In an age when the battle for talent is so fierce, it’s vitally important to not only to ensure equality in the workplace, but also to openly promote values of fairness and equality. Providing information on matters of equality within the workplace, especially when it is legally required, is integral to this and will pay dividends when it comes to creating a company culture that aims to attract the best employees.
 
3. Reaction Followed by Action
 
The best way to tackle a pay gap in an organisation, of course, is first of all to identify and acknowledge the problem. It is advisable, therefore, for employers to conduct an internal pay gap audit and then adjust company policies if necessary. Remember, when it comes to avoiding gender discrimination in the workplace, employers need to look further than just the pay gap. Ensure all company workplace policies, from bonuses to flexible working hours to promotions, are fair and equal for all.

In the Google case, the Department of Labour say they want the information in order to “understand what is causing the disparity, ” while Google continues to refute the claims that it underpays women. Whatever the final judgment in the case, a lesson for all employers should be to investigate their own employee pay scales, fix any pay discrepancies if necessary and make the information available should it be legally requested. This avoids unwanted suspicion, improves company reputation and ultimately helps businesses attract and retain talented employees.
 
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We are all aware of the current difficulties facing Human Resource departments. From talent acquisition and retention, to workplace discrimination and skills shortages - companies are constantly looking for new ways to tackle the minefield of issues in HR. One way that some companies are innovatively trying to overcome these problems is through a rebranding of HR itself.
 
You may have heard of this approach thanks to the tech giant, Google, which, rather than calling the department ‘Human Resources,’ renamed it ‘People Operations’ back in 2006. So, is this nothing more than a name change for HR? Or are there different aspects of People Operations that can help companies and HR departments address the modern day challenges of the digital age?
 
Here at the HR Department, we want to demonstrate three lessons HR can learn from People Operations, with the aim of advancing HR’s performance and efficiency in business.

1. People, People, People

Sorry to sound repetitive, but it’s hard to understate the people-centric approach adopted by People Operations departments. HR needs to shrug the stereotypical image of being bogged down in paperwork and payroll, and prove that at the heart of HR is the employee.
 
This means creating genuine connections with workers and putting their needs first. Understanding what makes employees’ tick is paramount in People Operations departments and is certainly something HR needs to focus on. In doing this, companies can harness a strong company culture where the values of its workers are on display and, in turn, build an employer brand that portrays the business as an attractive place to work.

People Operations also tends to be a more flexible and cross-functional department compared to traditional HR. It’s important to realise that HR functions, such as hiring, managing payroll, training or dealing with maternity leave, are all interlinked and demand a collaborative approach if businesses are to maximise productivity. In that sense, HR professionals should not fall victim to tunnel vision, ensuring they communicate regularly with each other and all departments.
 
2. Connect with Leadership

HR, in the past, has been seen as subservient to management within business. However, times are changing, particularly as companies recognise the central role that HR plays in employer branding and talent acquisition. People Operations departments tend to have a more strategic role in business and are therefore better connected with an organisation’s leadership – something HR departments can greatly benefit from. Having an HR presence at leadership level helps to make sure that an organisation has a unified corporate vision while ensuring prospective and current employees both understand, and buy into, the company culture.

3. Focus on Data

Finally, People Operations departments place more of an emphasis on data than traditional HR. As I wrote in a recent blog post on big data in HR, the truth is that data is key to providing insights into employees and assessing workforce sentiments with the aim of improving the environment in the workplace. Of course, data isn’t only useful for measuring employee satisfaction, it also has the ability to streamline payroll and timesheets, and improve employee performance analysis.
 
This also means that HR departments, rather than fearing automation, should see it as a way of generating useful data that contributes to the smooth and effective running of HR. Additionally, what sets People Operations apart from traditional HR is that data is constantly analysed and monitored on an ongoing basis, rather than waiting for an annual review – again, definitely something HR can learn from. In reality, HR departments need to embrace data, as People Operations departments have, in order to figure out the optimal way for a company to operate on a day-to-day basis.
 
Of course, this isn’t a call for HR departments to upend their traditional approaches altogether. Equally, it’s not being claimed that a people-centric, leadership connected, data focused approach is suitable for all companies. Instead, HR professionals should pick and choose the approaches which best fit with their company and its management style. Human Resources, People Operations, call it what you like, but the goal for this department will always be to contribute to the overall smooth running of a business and make it as productive and profitable as possible, all the while keeping employees happy. No mean feat, but one that we must strive for, whatever approach we take.

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