How do companies use human resource management to gain a competitive advantage?

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In a saturated job market, companies must constantly look for ways to attract—and keep—the top talent. One key part of the equation is the use of human resource management to specifically focus on the employee experience from beginning to end. Human resource management within an organization is defined by the...

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In a saturated job market, companies must constantly look for ways to attract—and keep—the top talent. One key part of the equation is the use of human resource management to specifically focus on the employee experience from beginning to end. Human resource management within an organization is defined by the specific structure and strategies at play to remain competitive among similar companies in on-boarding and retaining employees.

Realistically, this typically translates to:

  • Networking and head hunting top talent
  • Building an attractive benefits package
  • Managing day-to-day grievances between staff
  • Providing support in difficult situations
  • Offering competitive salary and bonus packages

Employees who are sought after in the market may have various options available to them for transition at any time. So while it's necessary to have an alluring package to offer in the initial stages of employment, it's also important to keep the employee happy throughout their tenure. It's often said that employees quit their bosses, not their jobs. As a result, strong policy and follow-through for grievances is key to retaining an excellent employee.

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Human resource management can play a huge role in helping a company stay competitive. This is especially true if the company is in a sector already crowded with competition. When that is the case, it is often the individuals in the company who help it succeed and human resources is key for making sure that the company has the best functioning team that the organization can have.

First of all, it is usually up to HRM to find and hire the best talent. If HRM can recruit the best people for the company, then the business will be able to take advantage of better ideas and working relationships. It is important for HRM to understand the work culture of the company well. That way they can not only hire the people with the best ideas and work ethic but also people who are going to work well with their fellow employees.

Furthermore, HRM is integral in supporting a good leadership team. For a company to stay competitive it must have the leaders who model a healthy working climate for all the employees. HRM can help to mindfully establish these good behaviors and practices.

Human resource management can also help to resolve inter-relational problems in the company that would otherwise hinder productivity. They serve as mediators in conflict resolution and usually lead or support team building initiatives. A team that works well together, that can openly and honestly share their concerns and ideas, will be more efficient and increase the overall competitiveness of a company.

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This is a good question. There are several things the human resource department can do to gain a competitive edge for their companies. Let me list a few of them.

First, if one of the goals is to retain top quality people in a company, then it would be wise to make the structure and culture of the company attractive and comfortable for the employees. The human resource department can do this by knowing what incentives employees want.

Second, the human resource department can also make the company attractive to get people to apply for and consider joining the company. By making the company attractive, it will gain more top quality people.

Finally, all companies have troubles at times. To diffuse the problems will be essential. If the human resource department is organized to help in this area, it will be great making the company attractive as well.

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