Discussion question concepts and applications

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.

Increased Customer Satisfaction

Happy employees project a positive attitude, to which customers will respond well. Individuals with high job satisfaction will be less stressed and more motivated to manage customer needs. A good experience interacting with a company's staff will increase the likelihood of repeat business. Employees who believe their organization values their well-being, provides job security, and ensures that staff members have adequate knowledge and equipment to perform their tasks will reward their employer with loyalty and will be more likely to take ownership of their responsibilities. "An HR perspective that is both unique and powerful is one that establishes the linkages between employee commitment, customer attitudes, and investor returns" (Ulrich & Brockbank, 2005, para. 31). If the human resources team creates programs to facilitate employee communication, remains aware of job satisfaction levels, and takes steps to improve job satisfaction, they will be able to create a very positive work environment that will result in even happier customers.

Job Training and Support