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Talent Management Employee Engagement Employee Experience

6 Benefits of Effective Human Resource Management

February 14, 2023
7 min read

Performance Management, Supercharged


The 2022-2023 Global Talent Trends Report from Mercer is out, and putting people first is in. The report found that the companies that anticipate high growth and have thriving, innovative workplace cultures have something in common: they’re all focused on becoming more human and relatable. 41% of C-suite executives told Mercer that the “fundamental shift in business” brought about by the pandemic “required a complete reset around work, the workforce, and the workplace.” 

The most successful companies are shaking things up, modernizing old processes, and investing in the future. At the forefront of these efforts are human resource departments. Your HR department is finally getting the recognition it deserves as an essential partner in business success — but that also means you’re faced with new challenges and expectations. 

Take on the role of a strategic partner and reset with confidence with a human resource management strategy.

Human Resource Management is a strategy that connects HR functions — from hiring and managing staff to providing them with the support and training they need to excel — with company goals.

What is Human Resource Management?

Human resource management (HRM) is a strategic approach to managing employees that connects HR functions — from hiring and managing staff to providing them with the support and training they need to excel — with company goals. It also involves developing HR plans that help ensure that the organization is well-positioned to meet its objectives.

HRM is about taking HR’s role from that of a business administration department to a true partner in overall business strategy. Instead of just hiring to fill roles, the HRM approach means:

  • Planning who needs to be hired and when
  • Making informed hiring decisions
  • Supporting employee development and growth
  • Measuring and improving employee performance 
  • Creating a company culture where employees can thrive

Some HRM processes include:

HRM is an integral part of any business and it can have a huge impact on a company's success. These six benefits of human resource management are just a handful of many. 

1. Greater Focus on Company Goals

Sometimes, the big picture can get lost in the day-to-day work — and often, employees don’t have sight of the big picture at all. A lack of alignment between individual and company goals often makes employees feel frustrated and disconnected from their work, which can lead to poor performance and, ultimately, unsatisfied customers.  

Human resource management bridges the gap by incorporating goal-setting into their performance management processes, connecting employees’ individual and team goals to overall organizational goals. This helps everyone see how their work contributes to larger goals, making it easier for employees to understand not only their impact but also that of their coworkers. Goals are an essential part of creating a culture of transparency and accountability where employees are united in their efforts to help the company achieve long-term success. 

Did You Know?

91% of companies that have effective performance management systems say that employee goals are linked to business priorities.

2. Increased Employee Engagement

The power of employee engagement is hard to understate — and it’s been top-of-mind for HR professionals for the past few years. Companies have been facing difficulties hiring and retaining employees and navigating trends that indicate a lack of engagement, like quiet quitting and the Great Resignation. Luckily, engagement comes much more naturally with an HRM strategy. 

The increased connections between employees and their work, motivating factors like career advancement and regular recognition, and clear objectives established through HRM all contribute to a more engaged workforce.

Work against #QuietQuitting and the #GreatResignation with a #HumanResource management strategy:

3. More Productive Employees

Effective HRM strategies include many processes that are proven to boost productivity:

Managing people at every stage of their employee lifecycle with HRM shows that your company will support them long past the recruiting stage. It gives them the opportunity to grow in their careers, which 94% of employees say would make them stay at their companies longer. When you invest in your employees, they’ll invest their skills, effort, and time into your company. 

4. Enhanced Customer Loyalty

A happy side effect of focused, engaged employees is that your customers will be happier and more loyal. If your people are invested in achieving their goals, feel a sense of belonging at work, and identify with your company values, they’re going to be overall more satisfied, productive employees — and customers will notice. Gallup research shows that customer loyalty and satisfaction are 10% higher at organizations where employees are highly engaged. 

5. Better Prepared to Manage Issues 

Whether it’s unexpected turnover or a change in business goals, unforeseen HR situations will certainly arise, and teams will need to respond to them while keeping up with regular work. Responding to situations reactively, or as they happen, is time-consuming and compromises productivity — for both HR and any other teams affected. 

On the other hand, as former U.S. Secretary of State, Jim Baker famously said, “Prior preparation prevents poor performance.” HRM strategy is HR’s “prior preparation” and it prevents other essential HR functions from grinding to a halt when there’s a fire to put out. It also reduces the negative impact on the other teams involved. For example, if three sales employees quit unexpectedly, HR teams need to quickly fill the roles because the lost productivity impacts quotas for the entire team. 

With an HRM strategy, HR has a headcount plan that has already accounted for potential turnover, and two new sales employees were hired a few months prior and are about to complete their onboarding and become productive team members. Your recruiters have a pipeline of qualified sales team candidates and get a third employee hired in just a few days. Finally, they line up candidates to maintain the headcount plan that gave them these results.

The result? Minimal impact on the team’s productivity and a quick return to their most effective headcount numbers. 

“Company behavior this year will determine how quickly companies bounce back from these recessionary times. If you don’t have a high-trust culture now, it’s definitely time to build one with careful thoughtful decisions that show your care for your people.”

- Kim Peters, Executive Vice President of Global Recognition and Strategic Partnerships at Great Place To Work®

6. Exceptional Corporate Culture

Together, all of the positive outcomes of an HRM approach contribute to exceptional company culture — which is a benefit all on its own. According to Great Place to Work, now is the time to keep strengthening your culture for many reasons, including the possibility of a recession. Companies that put employee experience first through tough times see both short-term success and sustained growth in the future. 

Technology for HRM

Many companies use a human resources management system (HRMS), HRIS, talent management software, or other tech solutions to handle HR functions — and for a good reason. HR technology streamlines processes while delivering powerful insights with advanced reporting and custom dashboards. The biggest benefit of a human resource management system is that it works with HR strengths and weaknesses, giving them the tools to harness people data and learn how their workforce operates and simplifying everyday tasks so they can focus on strategic work. 

ClearCompany is more than a traditional HRMS — we’re a full-spectrum Talent Management platform for the entire employee lifecycle that integrates with your existing payroll or HRIS. Create a connected employee experience with our cloud-based platform. Use our complete system or choose the modules you need:

  • Talent Acquisition with Recruiting and New Hire Onboarding
  • Performance, Engagement, and Goals
  • Planning & Analytics 

Get a demo of ClearCompany Talent Management personalized for your business needs — sign up today


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