The OzTech Company Innovative HR Strategy
The OzTech Company Innovative HR Strategy
Human Resource strategy in a company is important for planning to ensure the management of human capital so that it aligns with the company’s activities. The strategy provides a direction that the company takes to ensure it achieves its short-term and long-term goals (Henry & Temtime, 2010). Furthermore, it provides a long-term plan that dictates the HR practices within and outside the company. More so, it helps the company in the deployment and the allocation of resources such as personnel, time, and money. Employee Focused Strategy, which concentrates on the performance management and the recruitment and selection innovations, is important to OzTech Company to solve staffing issues.
Employee Focused Strategy
The employee data analytics is essential in OzTech Company because it will identify the strong points and areas of improvement. Employee analytics ensures equity in pay (Heilmann et al., 2018). The equity in payments ensures fairness to all the employees because the amount of work done will equate to the salary received. Secondly, it will drive the performance by ensuring that the managers incorporate the goals and objectives as a target to all the employees. Lastly, it will ensure strategic workforce planning through the identification of the skill gaps. Therefore, employee data analytic ensures the development of strategies that ensure attracting and retaining top talents.
Attracting and retaining the best and highly qualified employees in a company is important. The OzTech Company is at its growing phase, and the projection by 2021 is doubled workforce and profits. However, the rapid growth and fast pace at the company have led to several staffing issues. These include high employee turnover, poor team cohesion, a lack of diversity among employees, inconsistent performance management practices, skills gaps, and high burnout. Therefore, hiring the most qualified personnel in the company and retaining them is vital at the growth phase.
The innovations using performance management technology is vital in monitoring continuous performance in the company (De Winne & Sels, 2010). Previously, many companies used the yearly appraisals to monitor the performance. Currently, advanced technology has allowed for the introduction of the software that tracks the continuous performance of each of the employees. The software monitors the day-to-day activities of the employees to determine their performance levels. More so, it tracks the progress of all the activities within the company and gives valuable insights into their progress. Performance management will help the managers of the company support the employees where necessary and create the company’s coaching culture.
Performance Management Strategies
Performance management is a term that refers to the activities and the processes that are aimed at maintaining and improving employee performance according to the objectives of the company (Davies, 2019). Effective performance management is more than environment creation and is about interpersonal skills, teamwork, constructive feedback, and leadership. Performance management covers the operational and strategic aspects of the company (Nolan & Garavan, 2016). More so, the tasks associated with it ensure that the employees are kept in track. These tasks include setting the objectives for the employees, analyzing and rating the performance of the employees, providing the feedback from the previously discussed ideas, offering the employee development opportunities, and linking the employee pay and reward to their performance. Therefore, performance management is an essential aspect of the company in ensuring the overall objectives are met.
Recommended Performance Management Strategies
Defining and communicating the OzTech goals and performance objectives strategy ensures the expectations are known to all employees. It is difficult for the employees to meet OzTech’s performance expectations and goals if they are not outlined clearly (Henry & Temtime, 2010). The strategy should be the first step in the performance management. In some cases, the employees shy away from seeking clarifications and asking follow-up questions in cases of confusion and unclearness. Therefore, it is essential to preempt the pitfall by the HR management being clear and communicative to the employees as much as possible. The goals can be defined and outlined using goal-tracking software, distribution of flyers, creation of charts in the offices, holding meetings, and sending out emails (Berman et al., 2019). The outlining of the goals has to be done repeatedly to ensure that the message sinks. More so, the charts create visuals that act as a reference for the employees. Furthermore, meetings are vital in checking the progress of the employees and the setting of appropriate methods to achieve short-term goals.
The use of performance software is an important strategy in monitoring performance. Finding the appropriate software is crucial because it can cause complaints from the employees and low employee engagement. In such cases, the software may be obsolete, requiring an upgrade (Davies, 2019). Good performance software is employee-friendly, fosters employee development, has an easy-to-use dashboard interface, and offers both the traditional reviews and 360s. The software ensures the smoothness and efficiency of employees at all times, helping the company achieve its goals.
BambooHR is a cloud-based HR management software solution for small and midsize businesses. BambooHR offers small and growing companies a human resource information system (HRIS) containing an applicant tracking system (ATS), time tracking, payroll processing, benefits administration, employee engagement and employee satisfaction tools, automated reminders, and workforce data analytics to manage all aspects of the employee lifecycle.
Example of Performance Management Software
BambooHR performance management software improves the onboard new employees, improve the hiring process, maintain and analyze employee data, manage compensation, and develop the company’s culture (Davies, 2019). The HR can gather and track the information regarding the employees, including the input of payroll and employee benefits data in the central employee database. Furthermore, it analyzes the performance of the employees allowing tracking of performance data and the overall company’s performance (Hamel & Tennant, 2015). More so, the software uses the integrated ATS and the onboarding tools to streamline the recruitment process to first-day orientation. The software has special features that provide customized services and inactive employee management. Therefore, such software at OzTech Company can help in solving the challenges it has and realizes the 2021 goal.
The Frequency performance feedback is another essential performance management strategy at OzTech Company. The communication of the company’s goals to the employees is not enough to ensure performance. Checking the employee’s feedback periodically is essential to gauge the progress and provide feedback (Gast, 2018). Good performance feedback ensures reinforcement of strong employee skills and positive behaviors. More so, feedback performance provides opportunities for areas that require improvements. In this case, such periodic feedbacks are important in providing real time information. Therefore, the feedback is vital to the company and requires its integration into the culture of the company because the OzTech Company cannot afford to wait for the annual HR reviews. The timely employee feedback is essential to affirm the employees and their performance while shaping the effectiveness in their work.
The use of peer reviews is another vital performance management strategy for OzTech Company. The peer reviews also called the 360-degree reviews, is an essential strategy because it fosters motivation (Kim, 2019). In this strategy, the coworkers are allowed to praise their coworkers based on the excellent performance and point out the particular areas that require improvements. The OzTech Company has issues with employee unity, and with peer reviews, the problem can be solved. The exercise gives room for the employees to stick and work together as a team, assess the areas that require improvement through observing their coworkers, and builds better communication among the employees. Patagonia Company outlined that 72% of its employees were providing feedback, which gave room for improvements (Davies, 2019). The strategy does not necessarily require oversight by a senior employee. These reviews are read to ensure that no praises, concerns, claims, and comments are not addressed accordingly. Therefore, the strategy is crucial to the growing OzTech Company.
The preemptive management and recognition approach is also a crucial performance management strategy for OzTech Company. The high turnover at OzTech Company could be attributed to inadequate employee motivation. The realization of progress and profit-making is contributed by the implementation of rewards and practicing the preemptive approaches. The strategies ensure that the employees are aware of the expectations of the company (De Winne & Sels, 2010). The approach ensures that all the employees start at the same footing ensuring fairness in the performance. Furthermore, the incentives or rewards are aimed at showing the employees that the company cares for them and appreciates their efforts towards the achievement of the company’s goals. More so, it shows that the company is pleased with the employee’s performance and encourages them to keep up their good performances. The use of the HR Toolbox strategy in the company will help in identifying the employees who slip early and provides the most appropriate way to solve the problem before it gets out of hand.
Setting regular meeting to discuss the outcomes and results is an important approach in the performance management strategy. The approach is also called progress meetings or progress reports. In the strategy, time is set aside to meet the employees and assess the progress towards the set goals and objectives. The period for holding the meetings is periodical either weekly or monthly, depending on how the organizer sees fit. The meeting should be made mandatory for everyone making the feedback accurate and gives time to make plans moving forward. The agenda of the meeting should be made clear to all and provided prior to the meeting for early idea development. The agenda should include follow-up on the peer reviews, discussion of rewards and incentives, team members’ recognition, plans for the next projects, and resource allocations in the company. The meeting needs early preparations to ensure a discussion of relevant agendas. Furthermore, the frequency is dependent on the employee’s progress. If the progress is positive with employees receiving feedback and acting appropriately, the frequency needs reduction. It is important to hold a meeting to ensure that everything in the company is up to date and smooth operations if there are urgent issues that require addressing. Therefore, OzTech needs to consider having frequent meetings to ensure the realization of the 2021 goals.
Recruitment and Selection Strategies
The qualification of the employees contributes the staffing issues in the OzTech Company. Hiring employees with less knowledge and skills in data analytics will result in skills gaps and burnout, which are likely to contribute to the high employee turnover. Therefore, recruitment and selection strategies that are aimed at attracting the best candidates are important to consider.
Recommended Recruitment and Selection Strategies
Company branding is a crucial approach in recruitment and selection strategy. The Atlassian organization uses a branding strategy to attract highly qualified employees. Many companies compete for the qualified personnel making the company that is highly attractive to the candidate to win. Company branding has been shown to affect the process of recruitment, hiring, and retaining the employees. Reports have highlighted that 72% of the companies that recruit in the world agree to the fact that branding affects the hiring process (Seeck & Diehl, 2017). However, the branding of a company requires a lot of resources concerning time and money invested in it to attain the highest quality of a brand. The average company according to Glassdoor requires an average of about $ 129,000 in branding the company (Richardson, 2009). The resources are channeled to online company profiles, print advertising, and online social media monitoring. Therefore, the creation of the company’s brand is high. However, considering the outcome benefits, the risk of investing in branding is worth taking.
Job posts that are credible are important in the advertisement of vacant position in the company. OzTech Company has the challenge of high employee turnover and inadequate skills from the employees. Hiring more qualified employees require accurate job posts to attract the best candidates. Job advertisements quality can have a positive and s negative impact in the search of the best candidate (Henry & Temtime, 2010). The posts need to be accurate and realistic with the job description requirements for the qualified personnel to apply for the posts. The advertisement needs to be manually through physical distribution and online through social media. The impression of the candidates about the company is contributed by the advertisement. Errors in the advertisement make the company to portray carelessness, incompetence, and uninformed on the current market trends. Furthermore, best candidates would not wish to be associated with the company that has low reputation. Therefore, OzTech needs to create job advertisements that attract the qualified candidates to avoid employee burnout due to their lack of skills.
The improvement of the interviews is an important approach that affects the outcome of the hiring process. The interview process could have a negative impact on the qualified candidates with 83% changing their opinion concerning the company after interviews (Richardson, 2009). Branding and advertisement could attract qualified candidates but the process of interview could deter them. The process needs to be allocated adequate time to ensure that the best candidates are found. The process should be friendly to ensure that the candidates are not discriminated based on the factors that emanates from the company. Therefore, disqualification of the candidates should be based on many factors accumulatively. The information needs to be clear and concise to enable the candidates to critically evaluate the information required of them.
The KSAs approach is important in the selection process. Knowledge, skills, and the abilities are the effective way of selecting the best candidates. The approach has been determined to be the most common requiring the job analysis process (Seeck & Diehl, 2017). The management has the responsibility of analyzing the job opportunity and creating the expected specifications based on the knowledge, skills and abilities required. The best method of assessment of the candidates to explore their possession of the KSAs capabilities is undertaken and the best candidate selected.
The use of multistage selection approach is essential in the selection process. The approach combines many assessment tools into a single approach to ensure the best candidates are selected (Richardson, 2009). The validation each of the assessment tools is crucial prior to the selection, to ensure that the process is legitimate based on the job specifications that are provided in the job description. The assessment includes testing of the skills, personality test, sample work performances, and interviews. Therefore, the multistage approach is designed in a logical manner to ensure that the best candidate passes in all the stages.
The compensatory approach is important in the selection process. The approach uses a combination of many assessment tools at the same time (Andreeva et al., 2017). These approaches can be done before the selection or elimination process. The various tools are used to assess the candidate at different times allocated for each of the tool. In the process, the candidate is assessed and the performance scored in a sheet. At the end of all the activities, the scores are summed up and the best candidate is selected. Therefore, the candidate is not eliminated because of a single result from an assessment tool.
Challenges in Strategy Implementation
The lack of resources is the main challenge in the implementation of the Employee Focused Strategy. The cost of executing the recruitment and selection process is high (Noe et al., 2015). The execution of performance management approaches is costly. Therefore, the execution of the strategy requires resources in terms of money and time. OzTech is at its growth phase requiring resources for its growth. Channeling more resources to the strategy would be overwhelming to the company. However, the overall success of the strategy’s implementation will lead to profit-making and achievement of its 2021 goals.
Lack of communication is a hindrance to the implementation of the strategies. Communication is essential in the implementation of a new strategy because it involves planning and execution (Andreeva et al., 2017). Transparency from the top officials is a vital quality that ensures effectiveness in performance of the employees. Lack of communication leads to team breakage an uncertainty among the employees. Communication is important in ensuring team building and reducing the resistance to change. Lack of communication causes lack of cooperation among the employees since their expectations are not clearly outline by the managers. Therefore, communication of e new strategies to all the employees is essential within the company.
Lack of follow-up is another challenge in the implementation of the strategies. The implementation of the strategy is not enough reason to claim its success (Noe et al., 2015). Regular follow-up is vital in monitoring the progress. The regularly scheduled meetings and formal reviews are essential to the company to ensure that the plan is working out and to handle issues as they arise.
In conclusion, the development and implementation of an innovative strategy are vital to a growing company to ensure it meets the long-term goals. At the growing phase, a company faces many challenges that require finding solutions to ensure the company’s progress. The development of a strategy that ensures attraction and retaining of the skilled personnel is crucial. Putting the performance in check is essential to ensure meeting the short-term goals, which leads to the realization of the long-term goals. Implementation of the strategies is faced by challenges that require a quick solution to ensure efficiency in strategy implementation.
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