Human resources as a source of competitive advantage

Human Resources Contribution to Competitive Advantage

The human resources department has many opportunities to provide an organization with a competitive advantage. Firms recognizing that human resources can perform beyond simply administering benefits and filing employment documents, but can also play an integral role in shaping corporate culture into a highly productive machine, will experience significant bottom line gains. From quality recruitment, increased employee retention, and diversity, to heightened customer satisfaction and effective job training programs, the human resources department serves as the pulse of leading corporations.

Quality Recruitment

Since the United States has shifted away from manufacturing and is now primarily service-driven, the collective brainpower of an organization is one of the most crucial assets. The human resources department is responsible for recruiting talented individuals who can offer the most value to the organization. Attracting educated, experienced staff members can provide an organization with the knowledge base needed to achieve the type of innovation that can set the business apart from the competition. The human resources team can initiate contact with top candidates by selecting the best options for sourcing new talent, hiring recruiters with effective contacts, networking in the right circles, and building relationships with top universities. By developing an appealing benefits package, creating a positive organizational culture, fostering supportive leadership, and providing formalized advancement programs, the human resources department can inspire the desired candidates to join the company.

High Employee Retention

Employee turnover can be costly to an organization in many ways, including the expense of finding new talent, the downtime that is inevitable when bringing a new staff member up to speed, the cost of training and development, and the impact on morale. "Performance of knowledge based industries depends on organizations attracting, holding, and motivating knowledge workers" (Jayne, 2006, p. 3). If human resources can develop effective conflict management tools, provide management and leadership training, and ensure that employees are receiving sufficient motivation and mentoring, retention rates will rise. Higher retention rates will yield more competitive industry results as the work groups will be able to achieve increased output levels due to their collective knowledge and experience working together.

Positive Impact of Diversity

Human resources departments that make diversity a priority will build a workforce better equipped to manage the changing global dynamics that companies face. Diversity yields broader insights, new ways to approach problems, the ability to related to a diversified customer base, new ideas that can improve problem solving techniques, and much more. Successfully managing a diversified workforce requires more than changing recruiting methods. Human resources staff members are also responsible for teaching employees new ways to communicate and manage conflict.

Job Training and Support

Employees who receive consistent on-the-job training, opportunities to stay on top of new trends, and even tuition reimbursement will be more effective in the workplace. "To be a catalyst for strategic change, HR would need to focus on creating a work environment that promotes continuous learning" (Gaining competitive advantage, 2005, p. 2). Organizations that fail to provide structure, leave employees to fend for themselves when it comes to supplies and equipment, neglect technology needs, or lack leadership and management will find productivity levels suffering tremendously. The human resources staff is responsible for developing training programs and ensuring that managers have the necessary leadership and management skills to provide guidance to employees. An organization that provides formal training will cultivate more functional and productive teams.

Conclusion

A company's workforce is a crucial asset. Human resources departments now have the opportunity to reshape the organizational culture and develop a group of employees who can deliver a competitive advantage over the competition. By attracting the best talent, creating a positive work environment that fosters employee retention, providing opportunities for advancement, and facilitating diversity, human resources can contribute to increased profits.