💼 Why HR Matters
Businesses with strong HR practices are 40% more likely to retain employees and 25% more profitable. Good HR helps create happy, productive workplaces where people want to stay and do their best work.
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Unlock This CourseHuman Resources (HR) is one of the most important departments in any business. Think of HR as the people who help find, hire and develop the workforce. Without good HR practices, businesses would struggle to find the right employees and help them grow in their roles.
Recruitment and training are two core functions that can make or break a business. Getting the right people in the right jobs, then helping them succeed, is what separates successful companies from those that fail.
Key Definitions:
Businesses with strong HR practices are 40% more likely to retain employees and 25% more profitable. Good HR helps create happy, productive workplaces where people want to stay and do their best work.
Recruitment isn't just about posting a job advert and hoping for the best. It's a structured process that helps businesses find the perfect match for their needs. Let's break down each stage:
Before recruiting anyone, businesses must ask: "Do we actually need someone new?" Sometimes, existing staff can be retrained or responsibilities redistributed. This stage involves analysing workload, budget and future business plans.
Breaking down exactly what tasks need doing and what skills are required.
Working out how much the business can afford to pay, including salary and benefits.
Deciding when the new employee needs to start and how long recruitment will take.
Once the need is confirmed, HR creates two crucial documents. The job description lists what the person will actually do day-to-day, whilst the person specification describes the ideal candidate.
Job Description: Scan items, handle payments, assist customers, maintain clean workspace.
Person Specification: Good communication skills, basic maths, friendly personality, ability to stand for long periods.
There are two main approaches to recruitment: internal and external. Each has distinct advantages and is suitable for different situations.
Methods: Promotions, transfers, internal job boards
Advantages: Cheaper, faster, motivates existing staff, candidate already knows company culture
Disadvantages: Limited choice, may create gaps elsewhere, potential for office politics
Methods: Job websites, newspapers, recruitment agencies, social media, job centres
Advantages: Wider choice, fresh ideas, new skills and experience
Disadvantages: More expensive, takes longer, higher risk of poor cultural fit
Technology has revolutionised how businesses find employees. Online job boards like Indeed and LinkedIn have largely replaced newspaper adverts, whilst social media recruiting helps companies reach younger candidates.
LinkedIn for professionals, Facebook for local roles, Instagram for creative positions.
Specialists who find candidates for businesses, especially useful for hard-to-fill roles.
Graduate recruitment programmes and internships to attract young talent.
Once applications arrive, businesses need to choose the best candidate. This typically involves several stages designed to assess different aspects of a person's suitability.
HR reviews all applications against the person specification, creating a shortlist of candidates who meet the essential criteria. This saves time and ensures only suitable candidates progress.
Interviews remain the most common selection method, but they've evolved beyond simple question-and-answer sessions.
John Lewis uses a comprehensive selection process including online applications, telephone interviews, assessment centres with group exercises and final face-to-face interviews. This thorough approach helps them maintain their reputation for excellent customer service by ensuring they hire people who fit their values.
Hiring someone is just the beginning. Training helps new employees become productive quickly and helps existing staff develop new skills. Good training programmes are investments that pay dividends through improved performance and employee satisfaction.
Different situations call for different training approaches. Understanding when to use each type helps businesses maximise their training investment.
Learning whilst doing the actual work. Includes shadowing, mentoring and job rotation.
Training away from the workplace. Includes courses, conferences and external qualifications.
Online training modules that employees can complete at their own pace.
Every new employee needs induction training to help them settle in quickly and effectively. This covers everything from health and safety to company culture and specific job requirements.
New McDonald's crew members complete a structured induction covering food safety, customer service, equipment operation and company values. This systematic approach ensures consistent service quality across all restaurants and helps new staff feel confident in their roles from day one.
How do businesses know if their recruitment and training efforts are working? Smart companies track key metrics to evaluate their HR effectiveness.
Time to fill vacancies, cost per hire, quality of candidates, retention rates of new hires.
Employee performance improvements, training completion rates, skill assessments, productivity measures.
Return on investment, reduced recruitment costs, lower staff turnover, increased sales per employee.
Modern HR departments face numerous challenges, from skills shortages to changing employee expectations. Understanding these challenges helps explain why effective recruitment and training are more important than ever.
Facing a shortage of skilled engineers, Rolls-Royce developed comprehensive apprenticeship programmes combining work experience with formal qualifications. Apprentices spend time in different departments, receive mentoring from experienced engineers and study for degrees. This approach has helped them build a skilled workforce whilst offering young people excellent career opportunities. Over 90% of apprentices stay with the company after completing their programmes.