General HR Archives - AIHR https://www.aihr.com/blog/category/general-hr/ Online HR Training Courses For Your HR Future Mon, 13 May 2024 12:56:33 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 7 Human Resource Management Basics Every HR Professional Should Know https://www.aihr.com/blog/human-resource-basics/ Mon, 15 Apr 2024 10:51:21 +0000 https://www.digitalhrtech.com/?p=19342 Effective Human Resource Management (HRM) is essential for businesses of all sizes and starts with knowing the basics. In this article, we dive into the seven Human Resource Management basics you must know to understand the varied roles of HR within an organization. We also look at the history of HRM and share some of the…

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Effective Human Resource Management (HRM) is essential for businesses of all sizes and starts with knowing the basics. In this article, we dive into the seven Human Resource Management basics you must know to understand the varied roles of HR within an organization. We also look at the history of HRM and share some of the most sought-after skills for effective Human Resource Management. Let’s get started!

Contents
What is Human Resource Management?
What is a human resource?
The 7 HR basics
1. Recruitment & selection
2. Performance management
3. Learning & development
4. Succession planning
5. Compensation and benefits
6. HR Information Systems
7. HR data and analytics
How has Human Resource Management changed and evolved?
Human Resource Management skills
FAQ


What is Human Resource Management?

Human Resource Management, or HR Management, or HRM, is the practice of managing people to achieve a better (organizational) performance. 

For example, if you hire people into a business, you are looking for people who resonate with your company culture as they will be happier, stay longer, and be more productive than people who don’t. Another example is engagement. Engaged employees are more productive, deliver higher quality work, and make customers happier. This means that if HR can find ways to make employees more engaged, this benefits the company.

The HR department aims to provide the knowledge, tools, training, legal advice, administration, and talent management crucial to supporting and advancing the company. 

This is what Human Resource Management boils down to: optimizing organizational performance through better management of human resources.

Explore the HR Management basics in the video below:

The logical next question is, who are these human resources?

What is a human resource?

Referring to people as ‘human resources’ in the business environment of today can feel weird and outdated. However, for clarity and the context of this article, we’ll continue to use this term. Besides, as one author rightly pointed out, ‘It’s not how you call it, but what you do’ counts. 

Human resources are all the people who work for or contribute to the organization in one capacity or another. Together, these people make up a company’s workforce. They can be full-time or part-time salaried or hourly employees, for example, but also contingent workers such as consultants, contractors, or freelancers. Ten years ago, 15% of the U.S. workforce consisted of contingent workers; today, they account for 35%.

Non-human resources 

And then there is a relatively new, non-human element to consider when we talk about human resources in the context of the workforce: robots. 

Machines and robots are increasingly involved in day-to-day work in all industries, and the interaction between the human and the machine is becoming increasingly important to the organization’s success.

While these machines are not considered ‘human resources,’ there is a case to be made that they should be included and taken into account in some way as they are a part of the workforce.

Why is Human Resource Management important?

HRM involves various activities, processes, and policies – tied together in an HR strategy – that aim to align a company’s workforce with its strategic (business) objectives. 

As such, effective Human Resource Management is integral to any organization’s success and plays a role in the following:

  • Attracting and retaining talent: The HR department creates a comprehensive talent strategy that helps the organization recruit, develop, and retain the right people.  
  • Enabling managers: Managers play a crucial role in employee retention and success. HR is there to equip managers with all the tools, resources, and support they need to help their teams flourish.  
  • Driving strategic planning: HR works with senior leaders to keep the HR strategy in line with the organization’s objectives. This enables the HR team to identify talent gaps and create workforce plans to then proactively find the right talent for the right position.  
  • Fostering organizational culture: HRM plays a vital role in shaping and cultivating the company’s culture by establishing the values, norms, and behaviors that correspond with the organization’s mission and vision. 
  • Creating a productive work environment: A positive work environment is good for employee productivity, which, in turn, is critical to the success of the business. Various HRM practices, therefore, aim to implement effective performance management systems, set clear job expectations, and provide regular feedback, among other things.
Five ways how HR Management contributes to organizational success.

The seven HR basics

When we talk about Human Resource Management, several elements are considered cornerstones for effective HRM policies. These cornerstones are: 

  1. Recruitment & selection 
  2. Performance management 
  3. Learning & development 
  4. Succession planning 
  5. Compensation and benefits 
  6. Human Resources Information System (HRIS)
  7. HR data and analytics 
7 HR Management basics include recruitment, succession planning, and five other cornerstones.

Let’s take a closer look at each of the seven HR Management basics.

1. Recruitment & selection

Recruitment and selection are the most visible elements of HR. Who doesn’t remember their very first job interview, right?

The goal of the recruitment and selection process is to find and hire the best candidate for the job, with the former focusing on attracting potential candidates to apply for the role and the latter focusing on evaluating and choosing the best candidate among the applicants. 

The recruitment process usually involves the following steps in some shape or form:

  • Preparing:
    • Vacancy intake with the hiring manager
    • Write job description
    • Creating job adverts
  • Sourcing:
    • Sourcing candidates
    • Checking the existing talent pool 
    • Keeping the hiring manager informed 
  • Screening:
    • Screening resumes
    • Phone screening
    • Giving a realistic job preview

The last phase of the recruitment phase has some overlap with the selection process, which then continues as follows: 

  • The job interview
  • An assessment 
  • References and background check 
  • The hiring decision 
  • Job offer and contract 
  • (Preboarding and onboarding)

2. Performance management

As we’ve mentioned earlier, an organization’s performance management practices play an important role in creating a productive and positive work environment and keeping employees engaged. According to a report by the HR Research Institute, 67% of leading organizations in performance management experienced increased employee performance, compared to only 16% of so-called performance laggards.

Performance management is the second HR Management cornerstone. It is a set of processes and systems aimed at developing employees in a way that enables them to perform their jobs to the best of their ability. Employees who are empowered to their full potential, improve the efficiency, sustainability, and profit margin of a business.

The goal of performance management is threefold: 

  1. To help employees build on skills that enable them to perform better in their roles
  2. To reach their highest potential
  3. To boost their success while accomplishing the strategic goals of the organization.  

Effective performance management is based on a continuous conversation between employees, their managers, and HR. 

A strategic and systematic performance management process combines verbal and written components that take place throughout the year. It involves the following actions:

Important decisions regarding an employee’s career, such as promotions, bonuses, and dismissals, should be linked to the organization’s performance management process.

3. Learning & development

Learning and development (L&D) is another HR fundamental and an essential part of an organization’s overall people development strategy. 

Put simply, L&D is a systematic process that enhances people’s skills, knowledge, and competencies to improve their work performance. 

Learning involves acquiring knowledge, skills, behaviors, and attitudes that result in better job performance. Examples of what learning activities can look like include: 

  • Reading blogs, articles, or books 
  • Hands-on experimentation
  • Peer learning
  • Lunch and learn sessions
  • Attending seminars, conferences, or webinars

Development evolves around broadening and deepening a person’s knowledge in line with their individual, long-term professional goals. The idea here is to grow job-related abilities and expand someone’s potential for future opportunities. 

Activities focused on development include: 

L&D helps employees to reskill and upskill. It is typically led by HR, and a solid learning and development program can be very helpful in advancing the organization toward its long-term goals. 

This approach allows employees to bridge skill gaps and grow into leaders. A well-known framework that connects performance management with L&D activities is the 9-box grid. Based on people’s performance and potential ratings, HR and the manager can advise on various development plans in consultation with the employee. 


4. Succession planning

Succession planning involves planning contingencies in case key employees leave the organization. It is about proactively identifying top performers and potential leaders and getting them ready to fill (senior) positions as soon as someone leaves. 

While crucial for the continuity – and sometimes even the survival – of the business, many companies of all sizes still don’t have a solid succession plan.

Succession planning is a complex process and if you want to navigate it successfully, keep the following three things in mind:

  • Critical roles only: Succession planning focuses on roles that are vital to the organization’s competitiveness and continuity, especially senior leadership roles.
  • Key talent: Unsurprisingly, for those critical roles, only top performers and potential leaders (usually internal candidates) are selected to be mentored and developed. 
  • Continuity: The ultimate purpose of succession planning is to ensure that someone else is ready to take over immediately when someone leaves to maintain business continuity.
Succession planning facts
  • 70% of family-owned businesses don’t survive the transition from founder to second generation. The primary reason for this is a lack of succession planning.
  • Poorly managed CEO transitions wipe out almost 1 trillion dollars annually for S&P 1500 companies alone, according to HBR.

5. Compensation and benefits

Another fundamental component of HR management is compensation and benefits, often called comp & ben. Fair compensation is critical in attracting, motivating, and retaining employees. 

Compensation and benefits consist of all the monetary and non-monetary rewards employees receive from their employer in exchange for their labor. Examples include: 

  • Salary
  • Bonuses
  • Insurance 
  • Retirement contribution
  • Childcare benefits
  • Flexible working options
  • Etc.

Getting comp and ben right is important for two main reasons.

On the one hand, making a solid, attractive offer is key to attracting the best talent. On the other hand, comp & ben and related taxes can account for up to 70% of business costs, highlighting the importance of balancing this with the organization’s budget and profit margins. HR should, therefore, closely monitor the state of compensation and benefits at their organization.

A final thing to note here is that employee satisfaction is mainly driven by what they perceive as fair rather than by how much someone is paid. How employees feel about the company’s pay philosophy and process is more likely to impact their outlook than the actual pay.

So, in addition to offering decent compensation, HR teams may want to start paying more attention to how pay transparency works and how to manage compensation perceptions at their company.

Check out our Learning Bite to learn everything you need to know about the 7 cornerstones of HR Management!

6. Human Resource Information System (HRIS)

The two final HR Management basics are not HR practices but tools to improve HR. The first one is the Human Resources Information System, or HRIS. 

Most HRIS solutions support all the HR processes and practices we discussed above. Sometimes, however, the management of these functionalities is spread out over different HR systems. For example:

  • HR professionals often use an Applicant Tracking System, or ATS, for recruitment and selection to keep track of applicants and new hires
  • For performance management, a performance management system is used to keep track of individual goals and insert performance ratings 
  • In L&D, organizations utilize the Learning Management System (LMS) to distribute learning content internally, and other HR systems are used to keep track of budgets and training approvals
  • Compensation specialists often use a payroll system
  • There are digital tools that enable effective succession planning.  

According to the annual Digital Employee Experience Audit, 30% of companies still use more than ten different HR systems.  The bottom line here is that there is a significant digital element to working in HR, which is why we need to mention the HRIS when talking about the basic components of HRM.

7. HR data and analytics

The final HR fundamental revolves around data and analytics. In the last decade, HR has made a significant leap towards becoming more data-driven. 

The HRIS we just discussed is essentially a data-entry system. The data in these systems can be used to make better and more informed decisions. 

An easy way to keep track of critical data is through HR metrics and/or HR KPIs. These are specific measurements showing how a company performs on a given indicator. This is referred to as HR reporting

This type of reporting focuses on the current and past state of the organization. Using HR and people analytics, HR can also make predictions. Examples include workforce needs, employee turnover intention, the impact of the employee experience on customer satisfaction, and many others.  

HR can make more data-driven decisions by actively measuring and looking at this data. These decisions are more objective, which makes it easier to find management support for them.

How has Human Resource Management changed and evolved?

What Human Resource Management looks like today – and what is expected of HR professionals – is vastly different from what it looked like a hundred years ago. 

From around 1900 until the 1940s, for example, HR teams were mainly expected to keep employees healthy so that they would remain productive.  

During the 1980s and 1990s, HR departments ought to focus on motivating and engaging the workforce while modernizing their HR practices through technology implementations. 

What we’ve seen from 1990 onwards, and still see today, is that HR is expected to be a strategic partner and able to align the business agenda and the HR agenda.  

As for the (near) future, and as we enter the digital-human era of work, things will shift further, and even more will be expected of HR teams. They will have to guide the organization to adapt to workforce changes and redefine the working relationship between talent and employers.   

Human Resource Management skills

To strategize and execute HR initiatives, HR professionals need to possess the following skills:

  1. HR specific skills, including:
    • HRM knowledge and expertise 
    • Administrative expertise
    • Employee experience expertise 
  2. Business acumen, including:
    • Commercial awareness
    • HR strategy creation and execution 
    • Advising 
  3. Soft skills, including:
    • Communication skills 
    • Active listening
    • Proactivity  
  4. Digital & data literacy, including:
    • HR reporting skills 
    • Being analytical and data-driven 
    • Command of technology

However, as we’ve already pointed out, the field of Human Resource Management is continuously evolving, and the skills and competencies of HR practitioners have to evolve with it.

If we go beyond what’s currently expected of HR practitioners in terms of skills and competencies and look at what they need to develop they can start to future-proof their skill set, we get the following picture:

Future HR Skills

On a final note 

If there is one thing to take away from this article about the 7 Human Resource Management basics, it’s that all of these HR fundamentals are connected. 

Think of these HR components as building blocks – strong management of each core element contributes to the strength of the next. Collectively, these HR fundamentals enable a workforce to perform at its best.

FAQ

What does Human Resource Management do?

Human Resource Management, or HRM, is the practice of managing people to achieve better performance. It’s about optimizing company performance through better management of human resources, which is the organization’s workforce. This involves HR practices like recruitment and selection, performance management, and learning and development.

What is Strategic Human Resource Management?

Strategic Human Resource Management is an approach to managing human resources that aligns HR policies and practices with the long-term goals of the organization. It focuses on proactive management of people, ensuring that various HR initiatives such as recruitment, compensation, and performance management contribute to the overall business strategy and help improve organizational performance.

What is the role of Human Resource Management?

The role of Human Resource Management (HRM) is to make sure that the organization has the right talent to meet its objectives through recruiting, developing, and retaining employees. HRM is responsible for implementing HR strategies and practices that drive productivity, engagement, and, ultimately, performance.

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Monika Nemcova
Key Human Resources (HR) Pillars: Your 101 Guide https://www.aihr.com/blog/human-resources-hr-pillars/ Mon, 25 Mar 2024 11:02:34 +0000 https://www.aihr.com/?p=205066 Human Resources continues to evolve with new and changing laws, trends, and business needs. Yet, many of the various HR pillars have remained constant. Simply put, HR pillars are the main focus areas that form the building blocks of a company’s HR and people strategy. Let’s get back to basics and explain the fundamentals of…

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Human Resources continues to evolve with new and changing laws, trends, and business needs. Yet, many of the various HR pillars have remained constant. Simply put, HR pillars are the main focus areas that form the building blocks of a company’s HR and people strategy.

Let’s get back to basics and explain the fundamentals of HR, the main HR functions and foundations, and get an overview of the key pillars of HR to help you build an effective people strategy. 

Contents
What is Human Resources?
HR functions
The foundations of HR
Human Resources pillars
The overarching ‘roof’ of HR


What is Human Resources?

Human Resources (HR) is a fundamental aspect of any organization. The term refers to:

  • A function: HR as a business function involves processes and strategies for attracting, developing, and retaining talent to ensure company success.
  • A department: The HR department manages all HR activities, including recruitment, onboarding, compensation, development, performance management, and employee relations.
  • HR as the workforce: Human resources are essentially the employees of the organization.

Whether it’s developing company policies, hiring, onboarding, employer branding, and developing compliance standards, the HR function is responsible for managing a company’s entire employee experience. To do so effectively, the team must have all the HR pillars aligned to deliver effectively to meet both business and people strategy goals.

These pillars are outlined in greater detail in this article. In addition to pillars, Human Resources is comprised of HR functions and HR foundations.

The key Human Resources pillars and foundations form the effective people strategy.

HR functions

Some of the main HR functions include:

  • Recruitment, hiring, and retention: Development of an effective recruitment and hiring strategy, as well as ongoing retention efforts
  • Employee engagement: Help drive employee engagement by creating and maintaining a positive and growth oriented work environment for employees where open communication is encouraged and modeled
  • Performance management: Support the performance management process by assisting employees and managers with the annual performance review process and encouraging ongoing feedback throughout the year 
  • Training and development: HR should be proactive in determining what training would benefit the workforce and help create those training programs accordingly
  • Compensation and benefits: Ensure market pay research is up to date and considered in the company’s compensation and benefits structure. 
  • Compliance: HR needs to help ensure HR compliance with all applicable labor laws and regulations, including the development of policies and procedures.
  • Strategic planning: Support the company with the development and administration of strategic business plans.
  • Safety and health: Remain in compliance with any safety and health regulations and support related initiatives. Provide required training as needed.
  • Employee wellbeing: Implement programs that prioritize employees’ physical and mental wellbeing, including employee assistance programs, mental health awareness initiatives, physical health programs

The foundations of HR

HR also consists of some main foundations and key areas. HR drives and provides oversight to these functions, which include:

  1. Workforce strategy: HR should drive a company’s workforce strategic plan, which includes assessing staffing needs, both in numbers and skills, maintaining competitive pay and benefits, supporting the performance management and career development process. This includes current and future needs.
  2. Organizational design: Support the management and implementation of a company’s strategic strategy. A company’s strategy is a key component in determining its organizational and company culture
  3. HR services: Research and implement HR services that support employees and the business, such as HR self-service features, employee assistance programs, etc. 
  4. HR technology: With a seemingly limitless amount of available HR technology options, HR can drive the implementation of cost-effective technology solutions that support HR services, payroll, compliance, reporting, timekeeping, and other HR functions.

Human Resources pillars

A company’s HR strategy is a roadmap for how companies manage their number one asset, their employees. There are several HR “pillars” that are key to. an effective and successful HR strategy. The HR pillars include the following:

Pillar 1: Talent acquisition and recruitment

HR professionals in talent acquisition and recruitment teams are responsible for recruiting, hiring, and onboarding new employees. They’re responsible for the entire hiring process from “A to Z”. 

The role of recruiters includes consulting with managers on hiring needs and type of employment needed (full-time, part-time, temporary, contingent workers, etc), development of job postings, sourcing of candidates from job boards, job fairs, and social media – all with the goal of developing skilled and diverse candidate pools.

Recruiters also support the screening and background check process, conducting initial or “screening” interviews, and coordinating with the hiring manager on final hiring decisions. 

Pillar 2: Talent management

Talent management is the process of attracting, developing, motivating, and retaining employees. It includes attracting top talent and ensuring they have the tools and resources they need to succeed and thrive. This will help drive employee performance and productivity, which ultimately supports the company’s goals and mission. 

Tied to talent management are employee experience and engagement. 

  • Employee experience covers all the elements and components of the employee life-cycle, from onboarding to performance reviews, team meetings, developmental opportunities, offboarding, etc.  
  • Employee engagement reflects how employees feel about working at the company, engagement in the job they perform, understanding of how their job makes a positive impact on the company, etc.  Note that there is a difference between employee experience and engagement, but both are equally important

HR tip

HR plays an important role in an employee’s experience and engagement by coordinating various team building activities that promote a positive and inclusive environment. Whether the team building event is virtual, in-person, onsite or offsite – the options for connectivity abound! These are opportunities for employees to get to know each other better and appreciate each other’s  uniqueness, and also promote the cohesiveness of a team.

This HR pillar serves as a foundation of all HR processes, and HR ensures that the company is compliant with all applicable laws and regulations. HR coordinates communication and training of these laws, such as anti-discrimination and anti-harassment. HR needs to stay abreast of new laws or changes to existing laws.

Pillar 4: Performance management

Performance management is the ongoing process of evaluating how individual employees are performing, identifying areas of improvement, and recognizing achievement. Many companies conduct performance reviews on an annual basis, with ongoing feedback or informal reviews throughout the year.

There should be no surprises come review time. Managers need to be communicating with their employees on a regular basis. This includes providing ongoing informal feedback – both positive and negative – and addressing any performance-related issues in a timely manner as opposed to waiting for the annual review. 

HR plays a key role in the overall performance management process. They can determine the company’s performance management schedule and cycle, provide performance management training to managers, help managers complete reviews for their employees, assist management and employees with facilitating performance management discussions, and assist in the development of performance improvement plans

Performance review practices include setting clear expectations, and encouraging employee input during the review about their satisfaction, career goals, questions, etc. 

HR tip

Performance management training for managers is critical to developing accurate and effective performance reviews. HR can assist managers in making sure they are clearly and tactfully articulating their assessment of an employee’s performance. Performance management training can include tools such as sample performance review templates, role playing exercises, and methods to make the performance review process collaborative. 

Pillar 5: Rewards and recognition

Rewards and recognition programs are common and effective ways to incentivize and motivate employees, and both programs show appreciation to employees for their contributions.

Rewards are typically connected to a specific metric and come with some type of recognition. For example, if employees in the sales department exceed their goals, then the manager may present them with a gift card as a reward, and a verbal “thank you” as recognition, either individually or in a staff meeting. Many companies also provide service awards, which recognize an employee’s years of service milestones.  

With recognition, there may or may not be a metric. Employees can be recognized for many things, such as hard work on a project, positive attitude or teamwork, going above and beyond, etc. Rewards and recognition can include work anniversaries and promotions, life events, such as birthdays, weddings, professional certifications or graduations, and individual or team accomplishments. 

HR drives many of the reward and recognition initiatives and programs within the company. HR should make rewards and recognition a consistent process. Not only does that promote fairness and equity, but it gives employees something to work towards and look forward to. 

Pillar 6: Career development

Employees want to feel supported by their employer when it comes to their career growth and development. Even if employees are happy in their role and not looking to switch jobs or get promoted, there still is always something to learn and ways to grow in a current role. Employees should feel comfortable expressing their career and developmental interests to their managers and HR. These types of discussions often occur during an employee’s performance review. 

There are many facets to career development, such as training classes, job shadowing, developmental rotations, etc. HR can help initiate and organize all of these developmental activities. The development of employees often requires that the company invest dollars and time, but it has long-term benefits such as higher quality, engagement, morale, productivity, and retention.

HR’s support of this initiative is important, and HR needs to keep an “open-door” communication policy with employees, especially when employees don’t feel comfortable – for whatever reason- with discussing their development with their direct supervisor or manager. HR can provide support and find options to help facilitate the employee-manager discussion. 


Pillar 7: Employee relations

Employee relations focuses on strengthening and cultivating the employee-employer relationship. HR professionals in this pillar support job satisfaction, organizational culture, employee engagement, and resolving workplace conflict. Some of the practices that help lay the foundation of positive employee relations include promoting, encouraging, and rewarding open and candid communication through the organization’s policies, processes, and procedures. This also extends to offering perks such as flexible work schedules, developmental job rotations, and working with management on leading by example.

HR tip

HR can develop and initiate tools such as employee engagement surveys and other anonymous resources that help measure employee relations and identify areas of improvement. Surveys can be administered at various intervals, such as annually, and HR should analyze the results/data for any patterns that need addressing. Being proactive can help address issues before they escalate – all which support the company’s employee relations pillar. Confidentiality of any surveys is key!

Pillar 8: Employee exits

Effective exit management focuses on providing a positive offboarding experience for departing employees for both voluntary and involuntary terminations. Exit interviews are important because they provide an in-depth look at the various components of an employee’s overall experience.

HR usually conducts exit interviews and should be consistent with how they’re administered. HR needs to collect and analyze the data received from exit interviews on a regular basis to address any patterns, concerns, or grievances. Being proactive about issues can help mitigate legal risks to the company. Additionally, some companies offer support in career transition and post-employment matters as part of the offboarding process.

The overarching ‘roof’ of HR

While HR strategies define the various logistics of HR-related functions (recruitment, compensation and benefits, training and development, etc.), people strategies outline the various methods to enhance and improve how employees carry out their roles, all while supporting the company’s business and HR strategy.  A company’s people strategy aspires to introduce processes and programs that improve employee performance, which supports employee retention, and can ultimately positively impact the company’s bottom line. 

 A company’s people strategy is directly related to the effectiveness and administration of its HR pillars. Without those solid pillars, the “roof” of HR may begin to crumble. 


Key takeaways

Today’s Human Resources departments have come a long way from days when their main responsibility was “hiring and firing.” HR now plays a strategic role in the daily operations of the organization’s business, particularly when it comes to employee engagement, HR compliance, and remaining proactive with the ever-changing HR initiatives, laws, and regulations.

When developing or updating an HR or people strategy, HR needs to define and incorporate HR pillars, as they cover and support the lifecycle of a company’s most valuable asset – its employees. 

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Monika Nemcova
Your Ultimate HR Compliance Checklist for 2024 https://www.aihr.com/blog/hr-compliance-checklist/ Wed, 20 Mar 2024 09:18:31 +0000 https://www.aihr.com/?p=204831 Something as simple as an HR checklist can help keep you on track when it comes to all the moving parts you, the HR professional, need to manage on a day-to-day and annual basis. HR compliance is at the forefront of all HR initiatives and is critical in helping minimize legal risks to an organization.…

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Something as simple as an HR checklist can help keep you on track when it comes to all the moving parts you, the HR professional, need to manage on a day-to-day and annual basis.

HR compliance is at the forefront of all HR initiatives and is critical in helping minimize legal risks to an organization. The risk of non-compliance can be detrimental. Since 2000, U.S. corporations have paid out a staggering $3 billion in employment-related and civil-rights lawsuits over allegations that their employer did not comply with applicable laws.

Let’s take a closer look at what human resources compliance is, why it’s important, what common HR compliance issues are, and what tools and strategies are needed to help stay on top of it.

Contents
What is compliance in HR?
Why is HR compliance so essential?
Your HR compliance checklist: 9 essential items
Developing an agile HR compliance strategy


What is compliance in HR?

HR compliance refers to a company’s policies, processes, and procedures that help ensure that work and employment practices adhere to applicable laws and regulations. This includes employment areas such as recruitment and hiring practices, compensation and benefits, workplace safety, employee classification, records retention, non-discrimination and anti-harassment policies, and labor relations. 

Compliance minimizes the risk of employment-related grievances, legal penalties, fines, and lawsuits. HR compliance encompasses everything from creating and documenting policies and procedures to administrating and enforcing those policies.

Why is HR compliance so essential?

Human resources compliance is important for many reasons, including:

  • Minimizes the risk of employment-related grievances, costly legal penalties, fines, and lawsuits
  • Helps reduce any damage to a company’s reputation. A damaged reputation can cause a company to lose business, potential customers, and can take a long time to repair and regain trust
  • Helps ensure an environment free of harassment and discrimination
  • Supports recruiting efforts and employee retention
  • Worker safety can be jeopardized if a company is not in compliance with safety-related laws
  • Not only does HR compliance emphasize adherence to laws, but also helps develop fair and ethical behaviors and employment actions

Your HR compliance checklist: 9 essential items

Compliance in HR includes so many components, which is why a checklist is an excellent tool to help be proactive and complete the necessary actions in a timely manner – all of which can ultimately help ensure HR compliance. 

While the format and specific items on an HR compliance checklist can vary depending on a company’s location, size, and industry, the following are some common and critical checklist items, along with a brief description for each category:

1. Recruitment, interviewing, and hiring

  • Ensure fair and consistent hiring practices: Standardize recruiting and interviewing procedures to ensure fair and inclusive hiring practices are followed. This includes prohibiting inappropriate interview questions, such as personal questions unrelated to the business or job at hand, avoiding preferential or discriminatory language in job postings, etc. 
  • Background check and reference check compliance: Ensure consistency in administering and applying background checks. Develop an approval and documentation process for any exceptions.
  • Form I-9 and work authorization compliance: Adherence to federal Form I-9 and work authorization requirements is critical. U.S. Immigration and Customs Enforcement (ICE) can conduct periodic Form I-9 audits for completion, accuracy, and timeliness of Form I-9s.
  • Records retention: Develop and adhere to documentation and records retention requirements on all recruitment and hiring initiatives, including Form I-9 retention.

2. Onboarding procedures and company policies

  • New hire orientation: HR should provide thorough new employee onboarding that includes explaining all company policies. This could also include training on anti-discrimination and harassment, safety, employee rights and responsibilities, and any other applicable compliance policies or procedures. 
  • Records retention: Maintain training and acknowledgment records of new employees from their new hire orientations

3. Employee classification

  • Fair Labor Standards Act (FLSA) compliance: HR is responsible for ensuring that company jobs are categorized accurately regarding exempt vs. non-exempt status. This impacts overtime eligibility.
  • Contingent workforce: Workers must be classified correctly based on the type of hire, such as Independent contractors vs .W-2 employees, temporary employees, etc.

4. Compensation and benefits

  • Payroll: Ensure tax compliance related to withholdings and reporting.
  • Wages: Ensure compliance with any minimum wage laws.
  • Benefits administration to eligible employees: Administration of healthcare, retirement, and other benefits. This includes leave of absence and adherence to applicable laws such as the Family Medical Leave Act (FMLA), Americans with Disabilities Act (ADA), Employee Retirement Income Security Act (ERISA), Affordable Care Act (ACA).
Infographic depicting an HR Compliance Checklist

5. Safety and worker’s compensation

  • Disability benefits: Ensure compliance with Department of Labor (DOL) Workers’ Compensation laws that entitle eligible workers to disability benefits if injured on the job.
  • Posting requirements: Certain required Workers’ Compensation notices of workers’ rights and reporting procedures must be posted in areas visible to employees.
  • Job and safety training: If applicable, provide job and safety training in accordance with OSHA requirements.

6. Diversity, Equity, Inclusion and Belonging (DEIB)

  • DEIB initiatives: Develop DEIB policies that address equal pay practices, reasonable accommodation policies, good faith efforts, etc.
  • Affirmative Action Plans (AAP): Develop AAPs and communicate goals to hiring managers. Retention of AAP and good faith effort documentation. This is subject to audit by the Office of Federal Contract Compliance Programs (OFCCP). 

7. Data privacy and information security

  • Data handling and storage policies: This includes controls such as who has access to employee data, how it’s stored, and a data and records retention policy.
  • Cybersecurity measures: Take proactive steps in the prevention of cyberattacks and phishing scams, and development of a data breach response plan. This may include the development of additional policies, such as an electronic communication-related policy.
  • Compliance with data protection laws: Be aware of data privacy laws, such as HIPAA and make sure there are policies, procedures, and controls in place.

8. Termination and separation

  • Termination procedures: Establish a termination policy, including removing access to company network and systems. Conduct exit interviews, payout of any unused vacation time. Provide information to employees on final paychecks and the continuation of benefits (COBRA).
  • Classification of termination: Ensure accurate termination documentation and classification, such as voluntary vs. involuntary terminations. This will help if the former employer files for unemployment compensation or files any grievances against the company.

9. Unions and collective bargaining agreements

  • Contract training: Train managers on key elements of the collective bargaining agreement (CBA) if any company jobs are covered under this agreement. Covered employees can file grievances for noncompliance with the CBA, which can also be costly to companies 
  • Labor law training: Train managers on any applicable labor laws.

This checklist serves as a general guide, and HR should tailor their checklists to their specific needs, circumstances, and applicable labor laws. Regular review and updates can ensure continued compliance with evolving laws and regulations

Developing an agile HR compliance strategy

One of the many important roles of Human Resources is to ensure a safe, fair, and equitable workplace for all employees. This includes providing oversight to a company’s adherence to employment laws and regulations, as well as an understanding of which governing agencies are responsible for enforcement. 

By being proactive rather than reactive, HR can help protect the company from legal and financial risks. Here are some HR compliance best practices HR can assist with that support the adherence to labor laws:

  1. Stay current with new or updated regulations: Labor regulations can change over time, including federal, state, and local regulations. It’s important that HR supports the organization by staying abreast of new and changing regulations. Consult with internal or external legal counsel if needed.

HR tip

Refer to trusted and reliable resources to stay up-to-date with regulations: 

  1. Use HR technology: Various HR software can assist with HR compliance, such as for payroll and applicant tracking.  
  1. Practice policy documentation: Ensure that your company’s policies and procedures are documented and easily available to all employees. This can include posting the policies on the company’s internal website, in an employee handbook, a company’s standard operating procedures, or in a compliance manual. 
  1. New hire training: Offer a comprehensive onboarding process, where newly hired employees learn about company policies, procedures and processes. Ensure that employee acknowledge their understanding of the policies, their rights and responsibilities, and how to report any grievances or potential noncompliance. Employees should undergo additional or refresher compliance training at various intervals, such as annually or every 2 years. 
  1. Management and HR training: Ensure HR teams and managers are knowledgeable about leave laws and accommodation requirements and that they can communicate with employees about their rights and responsibilities. Hiring managers often need reminding of HR compliance items such as appropriate interview questions before speaking with candidates. 
  1. Regularly audit policies: Regularly auditing an organization’s policies and associated procedures is key to staying compliant. Again, companies can partner with legal counsel on this. Any changes to policies and procedures need to be communicated to employees and management in a timely manner.
  1. Compliance risk assessment: HR can design a risk assessment to take a proactive approach to understanding the key company risks and a plan to address them through policies, procedures, and other related processes and actions. The risk assessment can be reviewed on a regular basis as determined by HR.

Key takeaways

Few aspects of HR are more “high-stakes” than HR compliance. Compliance in HR includes the development of policies, procedures, and related processes that help ensure companies carry out fair practices according to law and regulations.Noncompliant companies run the risk of spending millions of dollars on fines and settlements – all of which can be detrimental to a company’s bottom line and reputation. 

The ever-changing nature of employment regulations can make HR compliance complex and seem like a chore that takes time away from running a business. The time it takes to be proactive and stay abreast of labor laws is key to a company’s long-term success when it comes to remaining in compliance. This is where, once again, HR can help “save the day” by staying up-to-date on any labor laws and regulations that may affect their organization. 

The post Your Ultimate HR Compliance Checklist for 2024 appeared first on AIHR.

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Catherine
Time Off Request Form Template + How-To Guide https://www.aihr.com/blog/time-off-request-form/ Thu, 14 Mar 2024 10:36:11 +0000 https://www.digitalhrtech.com/?p=23509 A well-crafted time off request form is the key to coordinating how and when employees take time off. Because time off is such a crucial part of compensation and benefits packages, it’s important to effectively manage how employees request and receive it. In this article, we’ll review the purpose and elements of a time off…

The post Time Off Request Form Template + How-To Guide appeared first on AIHR.

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A well-crafted time off request form is the key to coordinating how and when employees take time off. Because time off is such a crucial part of compensation and benefits packages, it’s important to effectively manage how employees request and receive it.

In this article, we’ll review the purpose and elements of a time off request form. We’ll also share how to create one, some best practices for using it, and provide a downloadable time off request form template.

Contents
What is a time off request?
Why is a time off request form needed?
How do you create a time off request form?
6 time off request best practices
Time off request form template
FAQ


What is a time off request?

A time off request is a formalized method of anticipating and planning for employee absences. The process involves employees submitting a paper or online document that states the specific dates they would like to take leave from work and then receiving approval or denial from their employer.

Although they should be handled consistently throughout an organization, time off request requirements vary among different types of businesses. For organizations that function with self-directed employees, time off requests may be more of a notification than a request for approval. An employee who manages their own schedule may be free to simply state, “I’ll be gone the first two weeks of July.” 

However, for a wide variety of organizations, employees must follow a structured approach to taking time off so the business can maintain operations. For example, grocery stores need a certain number of cashiers every shift, and factories must have enough workers on the floor to preserve production levels. In these cases, employees should obtain approval for their absences in advance.

Why is a time off request form needed?

An organized format helps organizations adhere to leave policies. Documenting requests for time off serves several purposes, such as:

  • Streamlining the request and approval process for HR, managers, and employees
  • Tracking employee absences and maintaining time off policy consistency
  • Receiving advanced notice of absences to allow time for staffing needs planning
  • Retaining records for compliance with company policies and legal requirements.

How do you create a time off request form?

An employee time off request form must be simple to use and include all the critical information. Carefully thinking through how to develop a form specific to your organization will help you accomplish this.

Whether starting from scratch or customizing a template (see our sample below), the following nine steps cover the main elements a time off request should include:

  • Determine which information the form needs to include: Collecting all the relevant information on one form simplifies the process and prevents approval delays. Typically, this includes:
    • Employee’s name and signature
    • Employee ID number or job title
    • Department or team
    • Date of request
    • Type of leave (e.g., vacation, sick leave, military leave, personal day)
    • Dates of leave
    • Return to work date
    • Date of approval or denial

      Depending on the details of your time off policy, you may need to add other options, such as:
    • Reason for leave 
    • Contact information during leave
    • Section for additional comments or attachments (in case further explanation or supporting documentation is necessary)
Key features to include in a time off request form.
  • Choose a format: According to your organization’s resources and workforce needs, select the appropriate format for the time off request form. Options include a paper document, a digital form via email, or an HR information system submission. Provided that all your employees can access them, digital formats are the most convenient and easiest to track.
  • Design the form: Create a visual document for the time off request form. This can be done through Google Forms or Word, for example. Construct a form that is eye-catching, straightforward, and logically organized.
  • State the instructions: Provide clear, concise instructions on the top of the form that describe how to fill it out and the submission and approval process. Be sure to include how far in advance of the leave employees must submit the form. In addition, clarify where to submit it and explain how employees are notified of approval or denial.
  • Add fields for required information: Create fields for all the necessary details you established in Step 1. Ensure the fields are clearly labeled and easy to understand and that each one contains appropriate space for accommodating the applicable information.
  • Incorporate an approval section: The person who will approve or deny the time off request needs a place to formally indicate the decision. It should also have space for comments and either a physical or digital signature.
  • Ensure the form is user-friendly: Ask a couple of HR colleagues to review the form with a fresh set of eyes. In addition, be sure to get feedback from each department that will need to access the form, as well as the employee perspective, to confirm that it flows well, is easy to use, and contains everything that will be required. 
  • Implement and communicate: Once the form is finalized and ready to implement, make sure everyone knows about it. Announce that there is a new time off request method and communicate with all employees the guidelines for how the process works. If necessary, provide training, such as a quick instruction video.
  • Review and update regularly: Don’t allow the time off request form to become inadequate or obsolete. Periodically reviewing it and the process can reveal whether they still meet the organization’s needs or should be revised. Making needed updates will keep the time off requests running smoothly.

6 time off request best practices

Once you have an employee time off request form in place, there are some considerations for successfully implementing it. Here are six best practices for an effective time off request process:

1. Separate requests for vacation days from requests for medical time off

Although you can use the same unpaid or paid time off request form for all types of leave, medical leave must take priority. 

It’s common policy and often required by law that employers provide sick days and time for employees to see doctors and receive treatments or therapy. Therefore, when balancing the number of absences in your workforce, time off for medical reasons should be approved before vacation days are granted. If need be, you could consider having a separate vacation request form.

2. Have a policy in place for when multiple people want the same day off

Certain times of the year are more desirable for taking time off, such as around holidays and school breaks. This means you are bound to have overlapped time off requests and must have a policy that will address these situations. 

Is it “first come, first served” or do you approve based on seniority? Should managerial discretion play a role? Does the reason for the leave weigh in? For instance, would a wedding or family reunion be prioritized over a casual weekend getaway? 

When you have a seniority rules policy, keep in mind that new hires will never get the week between Christmas and New Year’s off. This could cause a retention issue. Think through all these scenarios before creating your policy, as each business has different conditions and needs.

A union contract may also dictate how you approve days off, so make sure your policy matches the company’s legal obligations. 

3. Set up rules for when people can request time off

Place reasonable boundaries around the timing of submitting requests. Allowing people to claim time off years in advance could mean that some will monopolize the most desirable days. However, you also want to affirm that employees have ample time to plan a trip. 

On the other end of the spectrum, allowing people to make last-minute (non-emergency) leave requests can make covering their duties much more challenging.

Here is one example of setting parameters around time off request submission:

  • At least 14 working days prior
  • No more than one year in advance
  • Requests for summer months must be submitted by March 31. 

4. Don’t ask for too much personal information

Whatever time off employees are entitled to is their time. They shouldn’t have to justify how they spend their time off because their employer is prying into their reasons for taking it. 

If you have a conflict where too many people want the same day off, you may need to prioritize based on the planned activity. However, if someone has available vacation time and the business won’t be adversely affected, their request should be granted without an inquiry. 

5. Strive to say yes

According to a Pew Research Center survey,  46% of U.S. workers who have access to paid time off take less than what they are eligible for. 

If there is any possible way to approve a day off, approve it. This is part of your employees’ compensation package; let them use and enjoy it. 

6. Don’t revoke already approved time off

Approving an employee’s time off request and then revoking it harms employee morale and your employer brand

When anticipating time off from work, people coordinate vacations with their families or traveling companions. This may include buying plane tickets and booking hotels. Having to cancel these plans is a major disappointment and inconvenience. It can also cause financial hardship.

These situations should be avoided to every extent possible. A well-organized time off request process can help safeguard against granting vacation days when they shouldn’t be. 

Time off request form template

Whether you’re creating a paper form or confirming that a digital format contains all the information you need, the following form template can help you get started:

A preview of a downloadable time off request form.

The exact content of the employee time off request form will depend on your organization’s specific requirements and location, but it should be as concise as possible. More detailed information isn’t required unless there is a conflict with too many people wanting the same day off. 

However, certain situations may require a more expanded form. For instance, when employees are responsible for finding someone to replace them during their absence, you may choose to include space for them to name this person. Also, if your organization requires supplemental documentation to justify medical, military, or jury leave, you might want to add a place for this.


Over to you

Managing time off requests should create a balance between the demands of your organization and your workforce. 

Employees need their allotted time off to refresh themselves or take care of personal business. Having a thorough, simple employee time off request form in place coordinates the authorization process to give employees easy access and reduce miscommunication and errors. In addition, it allows you to better plan for absences and practice good record-keeping to uphold your time off policy and legal compliance.

FAQ

What is a time off request?

A time off request is a formal method for employees to request and be granted time off for vacation, personal, medical, and other types of leave. By formalizing the request process, you can manage staffing needs and apply time-off policies consistently.

What are time off request best practices?

Best practices for dealing with time off requests include structuring how and when requests are made, fair handling of multiple requests for the same day, and governing how much personal information is required.

What information needs to be included in a time off request?

The exact content depends on your organization’s particular conditions and obligations. Standard components include employee information, dates/times of absence, type of leave, and approval or denial date.

The post Time Off Request Form Template + How-To Guide appeared first on AIHR.

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Monika Nemcova
How HR Chatbots Can Improve HR Processes (Includes Company Examples) https://www.aihr.com/blog/hr-chatbots/ Thu, 22 Feb 2024 09:11:37 +0000 https://www.aihr.com/?p=199800 HR chatbots are software programs that use artificial intelligence (AI) to handle various human resource functions like answering basic questions, performing tasks, and offering support.  According to Precision Reports, the HR chatbot market is projected to grow considerably between 2023 and 2030. The US will play a key role in the development trend of HR…

The post How HR Chatbots Can Improve HR Processes (Includes Company Examples) appeared first on AIHR.

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HR chatbots are software programs that use artificial intelligence (AI) to handle various human resource functions like answering basic questions, performing tasks, and offering support. 

According to Precision Reports, the HR chatbot market is projected to grow considerably between 2023 and 2030. The US will play a key role in the development trend of HR chatbots. The high adoption of this technology and the presence of large players in this area will create enough growth opportunities for the market. Growing demand in the e-commerce, BFSI, telecom, government, education, food, and beverage industries directly impacts the growth of HR chatbots. 

Contents
What are HR chatbots?
Types of HR chatbots
The advantages of using HR chatbots
The disadvantages of using HR chatbots
5 examples of companies using chatbots in HR
HR chatbot providers


What are HR chatbots? 

HR chatbots are AI-powered virtual assistants designed to perform various human resources inquiries and tasks. They use natural language processing (NLP) to understand employee and candidate questions and provide relevant information or complete actions. Think of them as friendly, self-service HR representatives available 24/7.

In Engagedly’s State of Artificial Intelligence (AI) in Human Resource Management report, the AI adoption rate worldwide stands at 21%. More companies recognize the benefits of AI for managing their employees. Global HRM leaders are adopting AI to drive transformations in HRM, with 45% incorporating AI for HRM. 

Also, 65% of respondents reported that AI improved productivity and efficiency in their HR departments. Performance management, employee engagement and satisfaction, training and development, recruitment and talent acquisition, and employee inquiries are among the top five functions that AI has significantly impacted.

Types of HR chatbots

  1. Recruitment chatbots: Reply to basic candidate questions about the company and the open role, collect initial candidate information, schedule job interviews, and pre-qualify them by scoring their responses.
  2. Onboarding chatbots: Guide new employees through onboarding and discuss company policies, benefits, tools, and culture. They also collect documents and answer questions.
  3. HR helpdesk: Handles routine employee inquiries like benefits information, leave policies, and policy clarifications. They can also update employees’ information, track attendance, and direct staff to relevant HR resources.
  4. Surveys and feedback chatbots: Conduct employee surveys (pulse surveys, exit surveys, engagement surveys) and gather employee feedback and sentiment to improve work culture.
  5. Employee engagement chatbots: Help improve the employee experience by giving them access to company resources, allowing employees to communicate with each other, gather employee feedback about culture and business practices, and promote company events.
  6. Wellbeing chatbots: Respond to health-related concerns, offer mental health support, and connect staff to wellness resources. 
  7. Training and development chatbots: Assist employees in accessing training materials, recommend training courses, and answer training-related questions.
  8. Performance management chatbots: Guide managers and staff during performance assessments, setting goals, and giving feedback. 
  9. HR analytics chatbots: allow HR personnel to access analytics and insights to make data-driven decisions related to workforce planning, talent management, and employee engagement
9 types of HR chatbots for different tasks.

The advantages of using HR chatbots

  • Increase efficiency: Chatbots can streamline workflows and automate repetitive and routine HR tasks, so HR personnel can focus more on performing more strategic duties. 
  • Enhance accessibility: They offer 24/7 access to information and support so that employees’ concerns can be addressed promptly.
  • Improve employee experience: HR chatbots empower employees to self-serve and take control of their HR needs anytime, anywhere.
  • Cost savings: Reduce HR operational expenses related to handling basic inquiries. 
  • Boost employee engagement: They can offer a convenient and accessible platform to communicate and send feedback between employees and managers. 
  • Better decision-making: HR chatbots collect valuable data from employees’ interactions, so HR can identify areas for improvement 
  • Improved compliance: Provide consistent and accurate information on policies and procedures, lowering the risk of human error and ensuring adherence to laws and regulations. 
  • Promote inclusivity: Chatbots can support multiple languages and provides accessible options for employees with disabilities, catering to a diverse workforce. It also eliminates potential biases in information delivery, which is impossible with human interaction. 

The disadvantages of using HR chatbots

While there are many advantages of using HR chatbots, there are also some disadvantages to consider: 

  • Limited capabilities: Might not be able to understand nuanced or complex employee concerns, which requires human judgment for example. It may not understand sarcasm, emotions, or the context completely. 
  • Lacking human touch: Can feel impersonal, especially when handling sensitive issues. Cannot replace empathy and authentic human interaction.
  • Data privacy concerns: Data collected by chatbots needs proper handling and observance of privacy and security measures. Data usage must also be transparent to avoid breaching employee privacy and trust. 
  • Implementation costs: Initial development and implementation can be too expensive. It also requires data integration and employee training. 
  • Technical glitches: Chatbots can also malfunction or misinterpret queries, leading to employee frustration. Algorithms powering the chatbots may inherit biases from input data. Careful monitoring and strong IT back up and mitigation strategies are critical.

5 examples of companies using chatbots in HR

1. Eightfold AI 

Ubisoft is a video game publisher, creating Assassin’s Creed, Far Cry, For Honor, Just Dance, Prince of Persia, Rabbids, Rayman, Tom Clancy’s, and Watch Dogs video game series. 

Departing employees found applying for openings at different Ubisoft locations, offices, or studios challenging. When employees applied internally, their job boards would submit their applications through the same ATS used by external candidates, resulting in misplaced applications. This meant that employees did not use the system widely, leading to an increasingly low attrition rate and a perceived lack of career progression within the company. 

Ubisoft sought the help of Eightfold AI. Using Eightfold AI’s Talent Management solution, Ubisoft implemented its own internal talent marketplace. This centralized hub contained job openings, projects, gigs, events, and mentors to increase internal applications’ engagement. It also allowed hiring managers to identify employees with the skills they need to complete projects. 

As a result, Ubisoft launched its talent marketplace in 28 countries in six months. Over half of the employees now use the platform to grow their careers. It has helped improve the company culture and increase employee satisfaction and retention. 

Ubisoft's HR chatbot.
Ubisoft's HR chatbot.

2. Bloomfire

Aite Group is an independent research and advisory firm specializing in business, tech, and regulatory issues and how they affect the financial services industry. 

The company needs the processes and technology to capture and share training documents, best practices, and knowledge from other employees. They wanted to improve their onboarding process by providing a single source of information that could be updated and shared within the organization while encouraging collaboration among employees. 

Using Bloomfire’s Knowledge Management Software System software, Aite Group created hundreds of pieces of content for employees. The company’s knowledge base has helped new employees self-pace their learning by searching and accessing information by themselves, without the assistance of HR or their managers. Also, sharing feedback about the knowledge base is encouraged, so management can measure their effectiveness and make adjustments when necessary. 

Aite Group's hr chatbot.

3. Hirevue

National Safety Apparel (NSA) manufactures protective clothing for customers in industrial environments. The company wanted to find and evaluate candidates rapidly. They also needed to fill their requisitions faster without hiring a staffing agency, ensuring they have enough people in their Ohio factory. 

Working with Hirevue, the NSA created a system that allowed candidates to find a job on the NSA’s website quickly, prescreen for the position, and self-schedule an interview via text or web chatbot. Recruiters could then focus on interviewing candidates within a shorter time frame, connecting within days rather than weeks. The time to hire was also shortened. Candidates receive job offers within 15 days, 4x times faster than before.

National Safety Apparel's hr chatbot.

4. Leena AI

Globe Telecom is the Philippines’ largest mobile telecommunications network, with at least 86.6 million subscribers. It provides broadband services, fixed-line telephony, and money remittance services. 

Before, the telco was manually monitoring HR tickets, issues, and queries, which meant many pending tasks and delays in resolution. 25% of tickets were unresolved within the set SLAs. Most KPIs were unmet. The lack of automated processes resulted in inaccurate data.  The telco wanted to reduce the employee query resolution time from 24 hours to real-time, strictly adhering to established SLAs and TAT. They also want to gain insights from HR dashboards and analytics and optimize HR processes within the organization. 

Leena-AI created the AI-powered HR bot EVA, which exponentially enhanced the employee experience. This resulted in 2.5x faster average ticket resolution time from 24hrs to 9.5hrs, 4.4x faster average ticket first response time from 8hrs to 1.8hrs, and 126% better average first response time than the set target.

Globe Telecom's hr chatbot.

5. The Bot Platform

Honest Burgers started as a small restaurant in London and has since grown into a national group of more than 40 restaurants across the UK. The company uses Meta’s Workplace to keep their staff connected. They wanted to integrate their services and applications into the Workplace, so employees could easily access their work tools, including training. 

With the help of The Bot Platform, the company launched Honest College. This personalized learning program directly integrates into the Workplace and can be accessed on desktop and mobile devices. The bot includes bite-sized training modules, offering lessons related to Honest’s various positions and responsibilities. Employees learn skills such as time and money management, and wellbeing.

To date, the program has successfully upskilled 150 waiters to become chefs. It also led to 15.6x positive ROI achievement within the first year, a 100% completion rate on compliance training, and a 73% engagement rate from staff on Honest Ops. 

Honest Burger's hr chatbot.

HR chatbot providers

HR chatbot
Features and functionalities

Collects candidates’ data conversationally and creates profiles, converting passive visitors into active applicants. It prequalifies them by asking questions and scoring their responses. Prequalified candidates are automatically scheduled for interviews via text, chat, or video that can be completed and reviewed anytime.

Greet new employees with tailored offer letters and onboarding forms. Answer candidate questions and notify candidates of their onboarding date. Send company new hire documents and communicate job expectations.

Offers engaging survey experiences through chatbot integration:

• Design an engaging video survey showcasing your company culture.

• Conduct quarterly or bi-annual employee surveys to inquire about employees’ satisfaction regarding their jobs & benefits.

• Share employee pulse survey results to measure employee engagement

• Know when an employee needs training and schedule it. Evaluate employees’ knowledge via assessments, quizzes, and auto-score their responses. Collect employee feedback about the training for improvement.

• Set up an all-in-one employee portal where employees can create ad hoc employee requirements, submit incident reports, and submit leave or time-off forms.

• Conduct exit interview surveys and use the feedback to make the culture better.

Learning and development: An intelligent, AI-powered talent coach, it gives personalized recommendations based on an employee’s career path, succession plan & individual talent profile. Advise employees of their career paths and encourage them to complete goals (OKRs).

• HR helpdesk: Employees can request their leave balances and holiday calendars. They can also access work policies and other employee documents.

• Employee engagement: Experience AI-driven daily pulse check-ins and in-app messagingAutomate surveys across the employee lifecycle.

HR analytics and actionable insights: Screen resumes for faster and smarter recruiting. Gauge team morale with pulse report. Provide constant reminders on OKRs and check-ins to ensure high-performance.

• HR Helpdesk: Address daily employee queries, including IT support, password resets, hardware requests, HR policy FAQs, leave applications, pay slips, and conference room bookings.

Recruitment analytics: Analyze job applications and provide insights to the hiring team by crunching large volumes of conversational data.

• Onboarding: Automate the onboarding process for new hires, from document submission and background checks to dispatching welcome kits.

• Employee referral bot: Ask employees to refer friends to fill open positions: Notify employees of new openings in Slack/TeamsAllow them to submit referrals instantly. Notify them of any referral bonuses that exist.

• Wellness bot: Create wellness plans for employees: Set fitness remindersShare mindfulness techniquesCreate company-wide health challenges.

• Buddy bot: Build strong professional and personal employee relationships:Allow employees to set up virtual lunches with other teams and departments Match ‘mentors’ and ‘mentees’


To sum up

HR chatbots can help HR professionals with admin intensive tasks, freeing up valuable time that can be better spent in providing value for the business. From addressing basic employee concerns to providing HR services, chatbots have enhanced how companies attract, serve, and retain employees. As technology evolves, we can expect even more advanced and effective chatbots to further improve HR functions and employee experience. 

However, HR professionals should remember that chatbots shouldn’t replace the human touch in human resources. There should be a balance between technology and human involvement to receive the best benefits. 

The post How HR Chatbots Can Improve HR Processes (Includes Company Examples) appeared first on AIHR.

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Paula Garcia
13 HR Quotes To Inspire and Motivate HR Professionals in 2024 https://www.aihr.com/blog/hr-quotes/ Wed, 21 Feb 2024 08:05:10 +0000 https://www.aihr.com/?p=198931 When you Google “HR Quotes”, you get more than three hundred million results. Many of these are quotes we have come across all too often, though, and as a result, they have lost their inspirational or motivational effect. In this article, we share a selection of HR quotes that will inspire and motivate you. Most…

The post 13 HR Quotes To Inspire and Motivate HR Professionals in 2024 appeared first on AIHR.

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When you Google “HR Quotes”, you get more than three hundred million results. Many of these are quotes we have come across all too often, though, and as a result, they have lost their inspirational or motivational effect.

In this article, we share a selection of HR quotes that will inspire and motivate you. Most of them come from our very own Subject Matter Experts and AIHR’s People Team!

Contents
Motivational HR quotes
HR professional quotes
Funny HR quotes


Motivational HR quotes

#1

“Dear HR Pros: You are an employee. You are a human being.”

Laura Mazzullo

This powerful, short quote serves as a reminder to HR professionals, particularly because we sometimes get so wrapped up in taking care of everyone else that we forget about ourselves. 

Laura recommends taking your paid time off (PTO) to rest and recharge. Also, to set expectations in your role. For example, advocate for a budget to help you do your job well and prioritize your professional learning and development.

What you can do:

  • Check out Laura’s full post here.

#2


Erik van Vulpen's HR quote.

HR is not just simply about helping the people of the organization. It’s also about helping the organization meet its objectives. As HR practitioners, it is essential to align your people-oriented goals with the business goals to facilitate success for both the business and its employees.”

What you can do:

  • When designing or implementing a new policy, initiative, or strategy, ask whether the approach is good for the organization and your people. 

#3

“Collectively, HR has the potential to truly be a force for good that makes a positive impact on organizations and societies if we have the courage to step up to the challenge.”

Dr. Marna van der Merwe

At AIHR, we believe that HR can be a force for good that balances the needs of individuals, organizations, and society to deliver mutually beneficial value. HR holds a distinct position to make a contribution and impact across six wide-ranging areas: 

  1. Accessibility of work 
  2. Equality and fairness
  3. Human-AI interaction
  4. Voice for societal issues
  5. Human wellbeing
  6. Climate adaptation.

What you can do:

#4


Dr. Dieter Veldsman's HR quote.

Dr. Veldsman emphasizes the transformative role of HR in unlocking individual potential. HR professionals should view their work not as mere resource management but as a catalyst for personal and professional growth. 

HR professionals can foster a culture that values and nurtures each employee’s unique abilities. By doing so, they contribute to organizational success and the fulfillment and empowerment of individuals within the workforce.

What you can do:

  • As HR, think of ways to involve employees in building a culture that values and nurtures each employee’s unique abilities. 

#5

“In hard times, urging people to stay positive doesn’t boost their resilience. It denies their reality. People in pain don’t need good vibes only. They need a hand to stay steady through all the vibrations. Strength doesn’t come from forced smiles. It comes from feeling supported.”

Adam Grant

While this quote isn’t directly (or uniquely) aimed at HR professionals, Adam does beautifully describe part of what HR’s role entails here. Creating a transparent work environment where people feel supported during the good and bad times.

A lot of what HR has to deal with on a regular basis can be referred to as hard times, employee grievances such as sexual harassment, employees who are seriously ill, layoffs, disgruntled staff, and the list goes on. It’s in these moments that the people involved need to feel supported – this goes for employees as well as the HR team.

What you can do:

  • As an HR team, organize a workshop around how to best support employees – and each other – in hard times.
  • Ask HR professionals from outside the company, for example, in an online or offline HR community, for tips and best practices.

#6

“If you struggle to be the company cheerleader, wear their branded clothing, post jobs on their behalf, or have lost your excitement for working at the organization, the problem is not HR; maybe you hate it there.”

Julie Turney

Julie Turney is a former HR professional turned HR for HR Coach. She is also a vocal advocate for self-care within the HR community. 

Julie fully understands the challenges HR professionals face, including mental health issues and burnout. 

Recent reports indicate how burnt-out HR professionals are. Post-covid challenges, a chronic lack of support and unappreciation, and an increased workload are some reasons why 98% of HR professionals report being burned out, and 88% admit they dread going to work. 

 What you can do:

  • It is time for HR professionals to start practicing HR for HR. Julie has created a concept called SAFE HR, which is a good starting point. In a nutshell, it entails:
    • S – Self-awareness. Recognizing your strong points as well as areas for improvement.
    • A- Act. Engaging in difficult discussions with leadership to express your needs and the support you require.
    • F – Forgive. Allowing yourself to move past projects that didn’t meet expectations, focusing instead on your accomplishments.
    • E – Educate. Commited HR professionals take full responsibility for their own professional growth, including skill enhancement, technological literacy, and understanding the needs of their People Team. They do everything in their power to be the best HR professional they can be.
  • Read our article about HR for HR, which shares nine actionable tips for HR’s well-being. 

#7


Dr Marna van der Merwe's hr quote.

This advice is true for all of us, whether we’re in HR or not. However, HR has had to navigate some negative perceptions of the department. An aspiring HR professional encountered a negative attitude to HR on Instagram reels. People had scathingly commented that the HR department was a useless department and most actively disliked HR. 

In one of AIHR’s podcasts, Steve Browne also discusses HR’s poor reputation and where it comes from. He believes that part of it is due to the fact that people base their experiences with HR on if something went wrong, and then that becomes their framework reference. The other part, he believes, is coming from HR itself, focusing more on the negative than the positive when it comes to people. 

So, there is work to do on that front. 

What you can do:

  • Define the value that you bring as an HR professional. If there is an area where you don’t feel confident in, find support or opportunities to develop and equip yourself
  • Have confidence in the value, knowledge, and expertise that you bring to the organization. This confidence will help you when others have an opinion or negative perception of what you do 
  • Consider how, as an HR department, you can communicate that value to executives and employees in the business.

#8

“Belonging is not the same thing as feeling like you fit in. Belonging is when you feel valued for everything that makes you stand out.”

LIZ FOSLIEN

In the LinkedIn post that accompanies one of her signature illustrations, Liz explains that when we feel pressure to conform, we tend to hide who we really are. We also stay quiet instead of sharing what we know, even if it would benefit the team.

This is food for thought for HR professionals and teams. How can we create a culture where people feel confident to share their ideas because they feel a sense of belonging?

 What you can do:

  • Read our Rethinking DEIB authored by Dr. Dieter Veldsman and Neelie Veldsman (that’s me)
  • In this piece, we share a multi-level perspective on Diversity, Equity, Inclusion & Belonging with practical tips on creating a DEIB environment in an ever-evolving space. 

HR professional quotes

#9

Moritz Fischer's HR quote

HR professionals need a broad range of skills to succeed in their roles. Essential HR skills include role-specific and soft skills, business acumen, and digital and data literacy. Not only will these skills help HR practitioners develop their careers, but they will also contribute to the organization’s success. 

Moritz emphasizes the importance of combining business-related skills, such as data literacy, with people-related skills, like empathy and understanding. It’s this variety of skills and finding the right balance between them that makes working in HR so exciting – and challenging at the same time.

 What you can do:

  • Take a look at our overview of 18 HR skills every HR professional needs to get an idea of what skills you might want to develop or brush up on this year
  • Based on your assessment, check out various HR courses or certificate programs and sign up for the ones that seem most relevant and exciting. 

#10

“The biggest skill we need to learn is how to collaborate with technology. I do not refer to using technology, but rather to the ability to see technology as a value-adding partner in productivity.” 

– Dr. Dieter Veldsman.

The advent of generative AI like ChatGPT has accelerated the need for HR professionals to use technology (and become more efficient). 

This rapid adoption of AI also requires HR to guide the organization and its employees in its adoption and use. It will be up to HR to create policies around the use of these new technologies.

But HR cannot serve as a guide if we don’t see (and use) technology as a value-adding productivity partner. 

 What you can do:

  • Assess how technology is or can be a value-adding partner in productivity within your organization, starting with your own HR team.

#11


Erik van Vulpen's HR quote.

Erik emphasizes the role of HR in unlocking individual potential. To do so, HR needs to unlock its own potential first. 

This requires HR professionals to identify skills gaps and prioritize professional development goals to develop the skills and competencies needed to provide business value and people value. It also means acknowledging when to focus on wellbeing and developing resilience in a rapidly changing work environment.

 What you can do:

  • As an HR professional and as an HR team, ask: What do I need to enable myself, and what do we need as a team?

Funny HR quotes

#12

“What’s it like to be a recruiter?” “Imagine a browser with 2487 tabs open.” “All. The. Time.”

Author unknown 

Recruiters frequently find themselves balancing multiple candidates with the expectations of eager yet occasionally impatient hiring managers. All the while, they must meticulously manage the stages of the hiring process.

It’s a lot to manage.

 What you can do:

  • Hold an intake meeting with the hiring manager to understand more about the job and the ideal candidate so that you can align the recruitment process with the hiring manager’s expectations
  • Set realistic expectations with the hiring manager
  • Communicate clearly and consistently during the recruitment process to manage candidate expectations.

#12


Dr. Dieter Veldsman's HR quote.

Dieter highlights the importance of understanding your role in HR. Being the people’s advocate at times means that you have to be the voice of reason.

This means that sometimes you will have to take the unpopular stance, and be the one that asks, “what are the implications if we do or don’t do this?”. HR is about treating people fair so they respect you, not about trying to be “liked”.

 What you can do:

  • Take a moment to reflect on some of your recent decisions. What motivated you to take a particular stance?
  • What is the level of respect for the HR function in your organization? A great way to assess the current perception of HR is to conduct an HR Impact Survey and gather feedback from stakeholders.

#13


An HR quote by an unknown author.

A fun, lighthearted quote to wrap up our list of HR quotes. Something that many people in HR may have thought at least once in their careers. 

So much is expected of HR professionals — from leadership, employees, and our peers. Sometimes people can inadvertently think we are miracle workers. But we are not. 

 What you can do:

  • Stay calm and keep smiling. 

The post 13 HR Quotes To Inspire and Motivate HR Professionals in 2024 appeared first on AIHR.

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Paula Garcia
ESG and HR: What You Need To Know and Where To Start https://www.aihr.com/blog/esg-and-hr/ Wed, 31 Jan 2024 09:37:20 +0000 https://www.aihr.com/?p=195672 Sustainability has been top of mind for business over the last decade. Many organizations have committed to a net-zero future with promises regarding changing supply chains, eradicating fossil fuels, and adopting environmentally friendly business practices. Beyond oversight and investor responsibility, HR teams can contribute and enable ESG practices in a way that benefits individuals, organizations,…

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Sustainability has been top of mind for business over the last decade. Many organizations have committed to a net-zero future with promises regarding changing supply chains, eradicating fossil fuels, and adopting environmentally friendly business practices. Beyond oversight and investor responsibility, HR teams can contribute and enable ESG practices in a way that benefits individuals, organizations, and communities.

In this article, we explore how environmental, social, and governance (ESG) requirements are changing the role of HR and highlight the opportunities on the horizon for HR leaders and professionals as part of the ESG agenda.

Contents
Understanding ESG
How HR contributes to the ESG agenda
Integrating ESG into the HR strategy
How HR can start driving ESG within their organization


Understanding ESG

The ESG acronym stands for three domains of responsibility organizations need to consider in terms of how they conduct their business: environmental, social, and governance.

Environmental

Environmental refers to the impact organizations have on the environment. For example, their carbon footprint, utilization of resources, and adoption of pro-environmental practices.

Case example

BMW Group is using renewable energy at their plants.

  • Wind turbines support production at the Leipzig plant in Germany, and hydrogen fuels approximately 130 floor conveyors. The facility is also piloting a newly developed hydrogen-powered burner technology in its paint shop.
  • The San Luis Potosi site in Mexico fully powers its operations with CO2-free electricity, thanks to solar panels.
  • The Munich site harnesses hydroelectric power from the Lech and Isar rivers to generate electricity for its production needs.

Social

Social refers to how the organization manages its relationship with other parties, including its employees, customers, suppliers, and communities. For example, responsible labor practices, focus on inclusive work, and upholding human rights and safety all relate to the social pillar.

Case example

Nestle, Mars, and Hershey all source cocoa from West Africa, where cases of child labor and forced labor have been an unresolved challenge. Public scrutiny has demanded some of these brands take a more active view on dealing with responsible suppliers and ensuring fair and decent practices.

In contrast, Tony Chocolonely is a brand committed to fair practices and paying fair prices to ensure decent work practices from their suppliers. By their own admission, they are not 100% slave-free but actively campaign and eradicate unfair labor practices from their supply chain.

Governance

Governance refers to how the company is managed. For example, factors such as board diversity, executive compensation, transparency of policy and practice, and ethics are all related to the governance pillar.

Case example

Many companies took to social media to celebrate their commitment to female representation in leadership on International Women’s Day 2023. Meanwhile, Francesca Lawsome and Ali Fensome built a gender pay gap chatbot that automatically extracted publicly accessible data from these companies to assess their commitment to gender equality in the workplace.

This initiative showed many inconsistencies between what companies say and what they do:

  • Heathrow Airport posted stories from “Women at Heathrow”. However, women’s median hourly pay is 14% lower than men’s.
  • Male employees at the domestic violence charity Refuge were paid 23.9% more than their female counterparts.
  • On International Women’s Day, Scottish Widows promoted its services aimed at closing the pension gap. It turned out that they pay female employees 14% less than their male workers.

ESG is about managing risks and making conscious decisions on how the organization engages with the world, acts responsibly as part of the community, and upholds excellent ethical practices. It involves holding organizations to predefined standards and good practice frameworks.

In many organizations, ESG is the sole responsibility of Investor Relations or Sustainability Committees, yet this approach does not deliver tangible results. Traditionally, ESG has been understood from investors’ perspective, highlighting their desire to allocate resources to companies that act responsibly and sustainably. Professor Adolf Berle is considered the father of ESG, and his work in the 1930s set the tone for modern-day practices related to the social responsibility of for-profit corporations.

ESG has to be ingrained across the organization as a way of work that permeates across departments in the culture of the business. Even though some aspects will find a natural home given the areas of accountability and responsibility, ESG cannot be something organizations “do” but needs to become part of what they are.

We discussed ESG and HR with ESG advisor Sakshi Bansal. Watch the full interview below:

How HR contributes to the ESG agenda

Shifting our lens to HR, various matters related to ESG fall within the responsibility of Human Resources. Unfortunately, many HR professionals don’t make the connection, and ESG remains a concept that does not reside within the scope of their function.

Contrary to this belief, HR is already actively involved in ESG in many ways. Here is an overview:

  Environmental Social Governance
How HR contributes Practices related to managing the carbon footprint and climate sustainability of the business Practices associated with managing the workforce community and upholding human rights Practices related to transparency, trust, and ethical conduct
Example practices
  • Climate adaptive practices
  • Responsible operations
  • Resource management
  • Workplaces and spaces
  • Fair access to work
  • Employee wellbeing
  • Diversity and Inclusion
  • Human rights
  • Labor standards
  • Social issues impacting communities 
  • Code of conduct
  • Ethics
  • Whistleblowing mechanisms
  • Board and executive compensation
  • Board governance
  • Compliance reporting

It’s clear that ESG activities are closely linked to the HR strategy. Currently, in many organizations, HR does not actively incorporate ESG activities into the people strategy, often only being involved at an operational level. They are not present in strategic conversations regarding how ESG can be incorporated into organizational culture, practice, and values.

For HR to become more active within the ESG domain, a shift in strategy is required.

How HR contributes to the ESG agenda.

Integrating ESG into the HR strategy

There are two different approaches to integrating ESG into the HR agenda. Both have benefits and limitations; depending on the business context, organizations need to make a decision about which will be more appropriate.

Approach 1:  ESG as an independent pillar and area in the HR strategy

In this approach, ESG becomes a dedicated strategic pillar of the HR strategy next to key components like talent acquisition, talent management, and compensation and benefits.

The benefit of this approach is that ESG is articulated clearly with designated objectives and outcomes related to the topic. The limitation of this approach relates to the sense that ESG responsibility only resides with the team that focuses on that pillar. This positioning could create a lack of shared accountability with other functions not actively contributing to ESG. 

This approach might be a good fit for HR teams only starting with ESG initiatives as it allows the opportunity to first incubate skills and knowledge related to ESG. With active collaboration and alignment between different functions, this approach can provide a good foundation for ESG to deliver value.


Approach 2:  ESG as a value underpinning the HR strategy

The second approach sees ESG as an integrated approach where all functions need to contribute to function-specific goals related to ESG. In other words, ESG becomes a shared responsibility.

This approach requires a broader and more intimate understanding of ESG to understand the different contributing factors. It is well suited to organizations that have established the foundational understanding and importance of ESG and allows ESG to be fully integrated into the organizational focus and culture.

The risk of this approach is that ESG is not actively monitored and reported upon as part of operational and strategic progress. If not monitored, this could lead to inaction.

How HR can start driving ESG within their organization

The following actions can enable HR to build the knowledge, skills, and expertise required to champion the ESG agenda as part of the HR scope.

Action 1: Build knowledge by understanding current ESG frameworks and standards

First, HR must better understand the current ESG frameworks and the standards they refer to. Even though the scope of this article will not cover each of these in detail, the following frameworks are important:

FrameworkDescriptionResource
UNSDGThe United Nations member states adopted a set of 17 interdependent objectives as part of the 2030 sustainable development agenda.https://sdgs.un.org/goals 
MSCIA set of indexes developed by Morgan Stanley Capital that incorporate ESG-related factors to influence investor decision-makinghttps://www.msci.com/ 
GRIThe Global Reporting Initiative is an independent organization that provides principles and guidelines for reporting on ESG-related matters in a transparent and standardized manner.https://www.globalreporting.org/ 
TCFDThe Task Force on Climate-related Financial Disclosures is a voluntary initiative that established a framework for companies to disclose climate-related risks as part of business operations.https://www.fsb-tcfd.org/ 
ILOThe International Labour Organization sets labor standards and drives the agenda for decent work. https://www.ilo.org/global/lang–en/index.htm 

Action 2: Analyze current HR practices and processes

HR teams can analyze current HR practices using these frameworks to assess the strengths and gaps that need addressing. For example, the ILO provides standards and guidelines to evaluate decent work practices.

The next step is to use data and people analytics to better understand the talent pools, inherent biases, and potential barriers to employment within the organization.

For example, a multi-national insurance business used labor data to evaluate their pay equity practices. Over three years, it managed to close the gender pay gap and start reporting transparently on pay.

Action 3: Bring a committee together to discuss ESG

ESG is a shared responsibility, and establishing an internal, cross-functional committee to discuss ESG matters is essential.

Participants of this committee need to include representatives from Risk, Finance, HR, Facilities, Legal, Corporate Social Responsibility, and Operations as a starting point and be empowered to make recommendations to the executive team on improving the ESG agenda.  

Where ESG practices become more advanced, the organization should appoint a Sustainability Officer with a team that actively drives and manages ESG-related matters.

Action 4: Create a clear stance on ESG matters for the organization to implement

For many, ESG remains a theoretical concept, and they don’t see the practical actions that can lead to a better future. The organization must develop a clear stance on ESG-related matters and its focus and priorities.

Internally, within the organization, employees must understand how ESG is incorporated into how the organization operates and what is expected daily to deliver on the internally set goals.


Wrapping up

The HR contribution to ESG practices has to take priority in people strategies and practices going forward. For too long, ESG has not been perceived as a shared responsibility within the organization, and HR has a crucial role in ingraining ESG into organizational culture, values, and practices. 

To do so, HR professionals must educate themselves on the available ESG frameworks and how they can be applied within their organizations to drive action.

The post ESG and HR: What You Need To Know and Where To Start appeared first on AIHR.

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Monika Nemcova
Termination of Employment Contract: Everything HR Needs To Know https://www.aihr.com/blog/termination-of-employment-contract/ Fri, 26 Jan 2024 10:05:09 +0000 https://www.aihr.com/?p=194243 HR professionals must be skilled in navigating the complexities of the termination of employment contract. From legalities and practicalities to managing the emotional aspects of the process, this article takes a closer look at what employment contract termination entails and what HR needs to know about it. ContentsWhat is an employment contract?Reasons for termination of…

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HR professionals must be skilled in navigating the complexities of the termination of employment contract. From legalities and practicalities to managing the emotional aspects of the process, this article takes a closer look at what employment contract termination entails and what HR needs to know about it.

Contents
What is an employment contract?
Reasons for termination of contract of employment
Terminating employment contract step by step
FAQ

What is an employment contract?

An employment contract is a legal agreement between an employer and an employee that details the terms and conditions of employment. The goal is to formalize the working relationship by clearly specifying what is expected from both parties. 

Having an employment contract in place reduces the risk of employment disputes. When such disagreements arise, this document is a crucial reference point, clarifying responsibilities and ensuring all parties comply with the established terms and conditions. While an offer letter is also an important document in establishing an employment relationship, it does not carry the same legal weight.

The contract usually also states what procedures need to be followed and what actions need to be taken in case of termination of the employment contract. This refers to the end of an employee’s agreement with the company and can be voluntary or involuntary. 


Reasons for termination of contract of employment

There are various legitimate grounds for terminating an employment contract. These may vary (slightly) depending on what country you are in, but usually they include reasons like:

Mutual agreement

Parties involved in an agreement always have the option to end that agreement by mutual consent. The termination of the employment contract, in this case, can take place via a process stipulated in said contract or, if such a clause doesn’t exist, simply by both parties agreeing that they want to terminate the contract.

This can happen, for example, when an employee decides to leave the company for another job opportunity and completes the notice period specified in the employment contract.

Poor performance

Poor employee performance can be related to a person’s job, behavior, or both.

Examples of job-related poor performance include not meeting targets, making mistakes, not responding to feedback, and missing deadlines.

Behavior-related poor performance can look like excessive absenteeism, being rude or disrespectful to co-workers and managers, and having a negative attitude.

In case of poor employee performance, the first step usually is to set up a performance improvement plan (PIP). This individualized, action-oriented plan clearly states where employees fall short, how they can improve, and within what timeframe. If this doesn’t improve the employee’s performance, termination of the employment contract can be justified.

Misconduct

Employee misconduct refers to the deliberate violation of a written or implied employee policy. This intentional disregard for corporate rules and expectations can result in basic verbal or written disciplinary action, suspension, or employment contract termination.

Other common reasons for employment contract termination include (sexual) harassment, theft, substance abuse, using company resources for personal benefit, and sharing confidential information. Some of these are also referred to as gross misconduct.

Redundancy

Redundancy typically occurs when there are changes to an organization’s operational requirements: the company relocates, shuts down particular projects or parts of the business, downsizes because of an economic downturn or merger, or automates certain processes so that the job can be done without an employee.

An employee can only legally be made redundant if there is no need for their job to continue to exist (it literally becomes redundant).

Other requirements for a genuine redundancy include the fact that the employer doesn’t have a different role available for the employee and that the company can not put out a job advert for the position they just made redundant.

If all of these conditions are met, the redundancy results in the termination of the employment contract.

Termination of employment contract in case of at-will employment

In the US, employment is largely at will. Put simply, this means that employers can decide to terminate the employment contract for any reason, at any time, as long as it’s not discriminatory or otherwise problematic.

Employees, in turn, are also free to leave a job at any time and for any or no reason with no adverse legal consequences.

Terminating employment contract step by step 

Terminating an employment contract typically isn’t the most fun thing to do. On top of that, specific requirements need to be met for the termination to be legally valid and to avoid potential wrongful termination cases.

This is why you want to have a solid, well-structured employee termination process in place. Here are some steps to consider:

1. Follow your termination policy

An employee termination policy is a formal written document that details how employee termination happens within an organization. It outlines the various steps of the termination process and provides guidelines for both management and HR staff.

As such, your termination policy forms the starting point of the contract termination process and structures it. If you don’t have a policy yet, it’s time to start creating one.  

Critical legal aspects may differ from one country or state to another and between different types of employment contracts. This should be something that is covered in your termination policy.

You want to ensure you are fully aware of the relevant local employment laws, such as what constitutes voluntary and involuntary termination, how to prevent wrongful termination, etc. 

If possible, talk with someone from the legal department who knows what’s important in this regard, and if this isn’t an option, you might want to consult with an employment lawyer.

In the Netherlands, for example, employers can only terminate an employment contract due to unsatisfactory performance if they have given the employee ‘sufficient opportunity to improve their performance,’ for instance, in the form of a performance improvement plan.

Failure to do so could lead to the employee starting an unfair or wrongful dismissal case against the company.

3. Put employee rights first

Terminating an employment contract is usually a sensitive issue, so the employee should always come first. Be as transparent, detailed, and emphatic as possible, both in delivering the message and with your termination policy.

An example of this transparency can be found in the Worker Adjustment and Retraining Notification Act (WARN) in the US. This act requires employers of 100 or more employees to provide a 60-day prior notification of plant shutdowns or layoffs of 50 or more employees simultaneously.

Another example of being transparent and detailed with employees is the PIP we mentioned several times; it gives employees all the information they need to improve their performance and avoid an unwanted termination of employment contract.

4. Prepare a termination letter

At some point, you will need to officially notify the employee that their contract will be terminated. For this reason, and to have a paper trail for both the HR and the legal department, it’s important to prepare a termination letter.

It is one of the most critical documents for departing employees since it states the official reason that ended their employment.

An 8 step process to terminate an employment contract.

5. Conduct a termination meeting

Toward the end of the employment contract termination process, someone from the HR team and the employee’s (direct) manager will have a termination meeting.

Getting this meeting right is especially important when you, as the employer, are terminating the employment contract. There are a few things to keep in mind, including:

  • Bring all the necessary documentation (i.e., performance reviews, written warnings, and relevant correspondence).
  • Use an employee exit checklist to ensure you address everything you need during the meeting. 
  • Clearly explain the reason for termination (again).
  • Be straightforward but empathetic, and avoid unnecessary details that could create confusion or legal complications.
  • Be specific about the next steps regarding their final paycheck, benefits, unused holidays, ongoing projects, etc. It may be a good idea to prepare a termination document with all this information to give to the employee. 
  • Allow the employee to ask questions and let them know whom they can turn to if they have questions after the meeting. 
  • Thank them for their contribution.
  • Make sure to always have two employer representatives in the meeting for both legal and safety reasons. 
  • From a practical perspective, try to have the termination meeting at the end of the day and avoid having it on a Friday, as people will have limited access to unemployment resources and career transition services over the weekend.  

HR tip

In the meeting, mention any available support, such as Employee Assistance Programs (EAPs), for emotional and practical assistance during the transition.

6. Negotiate severance pay

When an employee’s contract termination happens through no fault of their own – for example, in case of redundancy due to a merger – they often receive a severance package.

While offering employees severance pay is common practice, it is not mandatory in every country.

What a severance package looks like can vary widely from one organization to another, but here are some common elements:

  • A severance payment: For example, one week’s pay for each year of service to the employer (on top of their final paycheck). 
  • A temporary continuation of (certain) benefits
  • Severance benefits such as job counseling
  • Accrued holidays and sick leave: Companies can decide to pay employees for their unused vacation and sick days. 

If your organization does offer severance packages, you want to prepare a severance agreement and share it with the employee whose contract is being terminated during the termination meeting. Any severance negotiations can take place once the meeting is over.

7. Provide the final settlement

Once both parties have signed the severance agreement and all the other formalities have been completed, it’s time to proceed with the so-called full and final settlement (FNF).

This means that the employee must be paid for their last working month plus everything else agreed upon (i.e., unused holidays, severance pay, etc.). The full and final settlement process should be straightforward and follow the guidelines set out in the employment contract.

8. Resolve disputes

If a dispute arises, for example, because the employee believes that they have been wrongfully terminated, the employment contract once again serves as a guideline. Based on what’s stipulated in the document about dispute resolution, procedures can be followed with often mediation as a first step, and if this fails, legal recourse as the next step.      

HR tip

Include an explicit termination clause in your employment contracts to new hires. This creates clarity for both parties, reducing the risk of misunderstandings, disputes, and potential legal action. 

Key takeaways

Termination of employment contract often isn’t a pleasant situation for HR or any of the parties involved to deal with. With a proper process in place, though, it can be as smooth and pain-free as possible.

Two documents form the basis for a solid termination process: the employment contract that includes a clear clause about contract termination and your organization’s termination policy that guides HR and management staff through each step of the termination process.


FAQ

How do you terminate an employee’s contract?

Ideally, you terminate an employee’s contract by following the procedures and actions outlined in the employment contract and your organization’s termination policy. 

What are the rules for contract termination?

The rules for contract termination depend on the reason for the termination and the country in which the termination occurs. In the US, for example, employment is mainly at will, meaning employers and employees can decide to terminate the employment contract for any reason at any time (with a few exceptions, and as long as the reasons are not discriminatory).

Can an employer terminate a contract early?

An employer can terminate a contract early if the employment contract holds a clause that allows early termination. Otherwise, early termination may be possible by mutual agreement. 

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Paula Garcia
How To Design a Job Safety Analysis [+ Free Template]  https://www.aihr.com/blog/job-safety-analysis-template/ Fri, 26 Jan 2024 09:53:36 +0000 https://www.aihr.com/?p=194584 A job safety analysis template is a guideline for HR professionals tasked with helping employees avoid potentially risky workplace situations. HR professionals can identify hazards, decide on control measures, and reduce or eliminate risks through the JSA. It ensures that your organization—and its employees—follow consistent and safe work methods, reducing injuries because employees know the…

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A job safety analysis template is a guideline for HR professionals tasked with helping employees avoid potentially risky workplace situations. HR professionals can identify hazards, decide on control measures, and reduce or eliminate risks through the JSA.

It ensures that your organization—and its employees—follow consistent and safe work methods, reducing injuries because employees know the best, safest way to perform a task.

Contents
What is a job safety analysis (JSA)?
HR’s role in a job safety analysis
Why organizations must conduct a job safety analysis
The risks of not carrying out a JSA
12 simple steps to conducting a job safety analysis (JSA)
Job safety analysis example


What is a job safety analysis (JSA)?

A job safety analysis (JSA) is a systematic procedure to evaluate potential hazards associated with a specific job or task. The goal of a JSA is to identify risks and determine the best way to perform the job to minimize or eliminate the risk of injury to workers. It involves breaking down a job into its steps, analyzing each step for potential hazards, and then determining control measures to mitigate or eliminate them.

Workplace injuries and fatalities are still too high, despite significant progress in ensuring working conditions are improved and protecting workers from injuries, illnesses, and deaths over the past half-century. For example, according to the U.S. Bureau of Labor Statistics, there were 5,486 fatal work injuries recorded in the United States, a 5.7% increase from 5,190 the previous year. The fatal work injury rate was 3.7 fatalities per 100,000 full-time equivalent (FTE) workers, up from 3.6 per 100,000 FTE.

According to self-reports from the Labour Force Survey, 561,000 workers in the UK sustained a non-fatal injury. Of these, 124,000 employees had injuries that resulted in over seven days of absence.

To avoid workplace injuries, HR professionals can use the JSA as a tool for promoting safety and an educational resource for employees. By involving employees in the JSA process, they can understand the risks of their jobs and the importance of following safe work practices. Employers can use the information from a JSA to write a safe job procedure, which can be used for training employees and as a checklist for job observations.

Job safety analysis (JSA) vs. job hazard analysis (JHA): The differences

Job safety analysis (JSA) and job hazard analysis (JHA) are often used interchangeably, but there are some nuanced differences between the two terms. Aspect

  Job safety analysis (JSA) Job hazard analysis (JHA)
Focus Emphasizes the relationship between the worker, the task, the tools, and the work environment Concentrates on identifying and controlling hazards inherent to the work process. 
Origin Traditionally used in manufacturing and construction industries. Adopted in various industries, including occupational health and safety guidelines. 
Terminology ‘Safety’ suggests a broader focus on the overall work environment and practices. ‘Hazard’ specifically targets the risks and potential dangers in the workplace. 
Methodology Follows a step-by-step approach to identify unsafe practices and conditions. Often includes a risk assessment component to prioritize hazards based on severity and likelihood.
Documentation Results in the creation of safe job procedures and often integrates with training.           May lead to a formalized hazard control program with specific risk mitigation strategies.
Implementation JSA is generally seen as a proactive measure to prevent accidents. JHA can be proactive and reactive, addressing potential and existing hazards.
Regulatory requirements Some jurisdictions may specifically require a JSA for certain jobs.    JHA is often a required part of a comprehensive safety management system.
Employee involvement Encourages worker participation to identify unsafe conditions and behaviors. Involvement may focus more on the analysis of the job rather than the broader safety culture.
Outcome Aims to create a safe workflow and reduce workplace accidents and injuries. Aims to systematically reduce workplace hazards and their potential impacts. 

HR tip

Collaboration is key to the success of a JSA. Work closely with your organization’s safety professionals to understand the hazards associated with various jobs and develop appropriate risk mitigation strategies. 

HR’s role in a job safety analysis 

As an HR professional, you have an essential role in designing and implementing the job safety analysis (JSA) process, particularly as safety overlaps regulatory compliance, employee involvement, and organizational culture. Some of HR’s responsabilities in a JSA include:

  • Adhering to regulations: Ensuring the organization complies with all relevant workplace safety regulations and laws. This involves staying up-to-date with changing rules and implementing necessary changes to safety protocols and the JSA.
  • Training: Organizing safety training for employees, which may include instruction on how to conduct a JSA and training on the specific control measures resulting from the JSA.
  • Involving employees: Facilitating the involvement of employees in the JSA process, ensuring that they have the opportunity to contribute their knowledge and experience, which is essential for identifying potential hazards and developing practical solutions.
  • Record-keeping: Maintaining thorough records of all JSAs conducted, including the analysis, actions taken, and any subsequent changes in procedure. These records are essential for ongoing safety audits, regulatory inspections, and continuous improvement of workplace safety practices.

Why organizations must conduct a job safety analysis

Organizations must conduct a job safety analysis for various critical reasons, specifically to create a safer workplace.

  • Compliance: In the United States, the Occupational Safety and Health Administration (OSHA) outlines standards that often require identifying and mitigating workplace hazards. A JSA helps organizations comply with these regulations, including specific industry standards and general duty clauses.
  • Injury and illness prevention: The primary purpose of a JSA is to prevent workplace injuries and illnesses. Organizations protect their employees’ physical health and contribute to their overall wellbeing by identifying potential hazards and implementing control measures.
  • Risk management: JSAs are integral to an organization’s risk management strategy. They help identify risks before accidents occur, allowing for the implementation of preventative measures to save the organization from costly incidents, legal action, and reputation loss.
  • Increased efficiency: Regularly conducting JSAs can lead to improvements in job processes. By analyzing and updating safety procedures, organizations can make tasks more efficient and reduce the chance of hazardous events.
  • Skills gaps: The JSA process can reveal employee training and development needs. Organizations can better train their employees on safety practices and proper responses to potential incidents by understanding the risks associated with a job.
  • Incident assessment: Should an incident occur, a JSA provides a baseline for understanding how it happened and what might prevent it in the future. This information is invaluable for effective incident investigation and analysis.
  • Cost-savings: By avoiding workplace incidents and their associated costs (medical care, compensation, downtime, and potential fines), a JSA can lead to significant cost savings for an organization.

HR tip

Evaluate each hazard by considering the likelihood of an event or exposure, the severity of any potential outcomes, and the number of employees who might be exposed. 

The risks of not carrying out a JSA

Failing to perform a job safety analysis can expose an organization to numerous risks with potentially severe consequences.

  1. Workplace accidents and injuries: Without a JSA, an organization might not identify and mitigate potential hazards, leading to higher workplace accidents and injuries.
  2. Legal ramifications: Organizations not complying with safety regulations mandated by entities such as OSHA could face legal repercussions, including fines and penalties.
  3. Costs: For organizations that do not conduct JSAs, the costs associated with workplace injuries, lost productivity, increased insurance premiums, and potential legal action can be significant.
  4. Reputational damage: Workplace accidents can damage an organization’s reputation, impacting customer trust and the ability to attract and retain top talent.
  5. Increased turnover rates: Employees may feel undervalued and at risk, leading to low morale, reduced engagement, and high turnover rates.
  6. Loss of productivity: Accidents can cause significant disruptions to operations, including downtime and the need to reassign or hire new staff.
  7. Reduced work output: Inadequate attention to safety can result in poor job performance and a lower quality of work output.
  8. Decreased efficiency: A lack of JSAs can mean missed opportunities to optimize and streamline work processes for better efficiency.

12 simple steps to conducting a job safety analysis (JSA)

Conducting a job safety analysis is a detailed process that involves several key steps. It has three main elements: the job at hand, the potential hazard, or what can go wrong, and the control measure that must be put in place and followed to mitigate the hazard. 

However, to achieve these three objectives takes 12 clear steps. We have captured them to help you get started.

1. Select the job or task

Identify a job or task to analyze, typically one with a high potential for injury or a history of incidents. Prioritize complex jobs that are performed infrequently or have changed recently.

2. Assemble the JSA team

Gather a team that includes a cross-section of those involved with the job, including workers, supervisors, and safety professionals. This team should have firsthand knowledge of the job and its potential hazards.

3. Break down the job into a sequence of steps

Divide the job into its individual steps and describe what is done at each stage. Be detailed enough to capture the nuances of the job without becoming overly complex.

4. Identify potential hazards

Identify hazards that could potentially cause harm for each step. Consider the full range of physical, chemical, biological, and ergonomic risks.

5. Evaluate the severity and likelihood of hazards

Assess each hazard for its potential severity and the likelihood of occurrence. This evaluation can help prioritize which hazards require the most immediate attention.

12 simple steps to conducting a job safety analysis at your organization.

6. Determine preventive measures to overcome these hazards

Develop strategies to eliminate the hazard or reduce the risk to an acceptable level. Consider engineering controls, administrative changes, or the use of personal protective equipment.

7. Assign responsibility

Clearly assign responsibility for implementing the preventive measures. Specifying which person or department is responsible for each action will encourage accountability as well.

8. Develop training programs

Based on the findings of the JSA, develop or update training programs to ensure all employees are aware of the hazards and know how to work safely.

9. Document everything

Record all aspects of the JSA process, including the job steps, hazards, evaluations, and preventive measures. Documentation should be clear, accessible, and maintained for future reference.

10. Review and update

Periodically review the JSA to make sure it remains relevant and effective. Update the analysis if there are changes in the work process, equipment, or personnel.

11. Communicate

Share the JSA results with all employees who perform the job. Effective communication helps the workforce understand the hazards and measures in place to control them.

12. Monitor effectiveness

After implementing preventive measures, continuously monitor their effectiveness. Review the JSA if there is an incident, a near miss, or if routine monitoring shows a need for improvement.

HR tip

Engage with operational departments to base the JSA on a realistic understanding of day-to-day tasks and the actual conditions under which work is performed.

Job safety analysis example

Our comprehensive job safety analysis template is designed to help you in conducting thorough safety assessments for various job tasks within your organization. This customizable Word document is structured to guide you through identifying potential hazards, evaluating risks, and implementing effective safety measures.

Preview of a job safety analysis template in a Word document.

Safety is HR’s concern

The job safety analysis (JSA) is critical in ensuring workplace safety and compliance with regulatory standards. HR professionals are ideally placed to design and implement a comprehensive approach to identifying, evaluating, and mitigating hazards associated with specific jobs, preventing workplace injuries and fatalities as a result.

The post How To Design a Job Safety Analysis [+ Free Template]  appeared first on AIHR.

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Paula Garcia
Free Employee Emergency Contact Form (Word Doc & Editable PDF) https://www.aihr.com/blog/employee-emergency-contact-form/ Thu, 18 Jan 2024 09:43:07 +0000 https://www.aihr.com/?p=192855 An employee emergency contact form is a document that employees fill out as part of their employment paperwork. This form typically includes information about who should be contacted in the event of an emergency involving the employee. We have created a free-to-download employee emergency contact form in PDF (editable) and as a Word doc to…

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An employee emergency contact form is a document that employees fill out as part of their employment paperwork. This form typically includes information about who should be contacted in the event of an emergency involving the employee.

We have created a free-to-download employee emergency contact form in PDF (editable) and as a Word doc to help you develop and customize your own.


The post Free Employee Emergency Contact Form (Word Doc & Editable PDF) appeared first on AIHR.

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Paula Garcia