Dr. Hole find it strange that very often we see that small and medium sized corporate organization employee HR executives with no or very little operative management experience.
We often see organizations employ an individual in the specialist role of human resources manager. With limited budgets for salaries, organizations tend to put a higher priority on filling operational positions. While this may be a financial necessity, the lack of an HR manager with experience from operative management experience can put organizations at a disadvantage in a number of key areas.
Often we see that HR executives within small and medium sized corporation has the lack of understanding of the multiple roles that the HR department is. The function of HR is much more than hire and fire. When the HR executives lack the understanding of operative management we often see that performance management are unlikely to become a priority unless a crisis occurs inside the organizations.
Dr. Hole has experienced HR executives that are unwilling to contribute on how to tackle poor behaviors or substandard performance among their employees, even if a department manager asks for help. Alternatively, they may lack the necessary skills or experience to do so. Failing to address performance and behavioral issues in a proactive manner can lead to a loss of productivity and increased employee turnover, both of which can adversely impact a company’s profitability.
Therefore, one need to employee HR manager with a wider range and understanding of HR and general management. With a HR manager with no experience from operative management or experience from other positions we often see that the organization are likely to lack the formalized learning and development structures that should exist in larger organizations, such as annual appraisals, training needs analyses and development plans.
The lack of such processes can lead to training needs being overlooked and a failure to keep staff up to date with best practices. If employees see no opportunities to learn and develop within a company, they often choose to leave to further their careers.
The quality of employees within an organization is particularly important, given that resources are limited. Attracting new employees of the correct calibre can be a challenge for organizations if they find themselves competing with a large organization where the HR has a wider understanding and experienced within the subject of HR. Therefore, small and medium sized corporations should employ former senior executives from other management positions, than hire a HR manager who has worked whole life in HR and done nothing else. A good HR manager can ensure that the company’s brand is promoted to job seekers. HR managers achieve this through advertising, attending job fairs, and building relationships with institutions such as colleges and universities. Some organizations lack the dedicated resource to increase their profile among job seekers, which can lead to them losing out on top talent.
Employment legislation and government regulations place many of the same burdens on small or large organizations. While HR managers within large organizations have time to keep up to date with changes in employment legislation and regulations, this is much more of a challenge for overstretched managers in small and medium sized companies. Often we see that due to failure to understand current employ legislation leads to unintentional breaches of employee rights. This may occur when a company denies employees a right to which they are entitled, or a manager dismisses an employee unfairly. Such cases are often led by a loss for the employer in the court. This in turn creates unnecessary noise, loss of time, money and energy to the company.