Research by business publisher, CCH Australia Limited, and the Australian Institute of Management (NSW) has shown a strong correlation between human resources practices and business success.
The report, "Selecting for Future Success ¿ Profiting from Best Practice", is based on current strategies and practices of over 400 organisations in Australia in the areas of people selection and retention.
Among companies performing better than three years ago, 64% have linked their human resources strategy to their business strategy, the survey concludes.
For organisations pursuing best practice, the issue of selecting and retaining talented employees is one of the most important of their top 10 priorities, the survey found.
Key findings of the report are:
- rapid change in the marketplace has made attracting and retaining talented employees a strategic priority
- companies performing better than they did three years ago have a greater alignment between company strategy and HR strategy than companies performing less well
- companies which are performing better have:
- human resources representation at board level
- explicit policies on internal and external recruitment
- emphasis on balance and quality of life for employees
- strong commitment to formal performance reviews, and
- link rewards to performance
- among companies performing less well than three years ago, weaknesses in HR policies included:
- poor evaluation of selection processes
- competency not linked to selection, development and rewards
- managers not fully skilled in how to develop employees
- the inter/intranet not fully utilised for recruitment or induction purposes
The report finds that a common model of management is "fit and flexibility" in which there is alignment of company strategy, HR strategy, tactics and operations.