Explain how People Practices add Value in an Organisation and Identify a Range of Methods that Might be Used to Measure the Impact of a Range of People Practices

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Impact refers to a change or action’s effect on someone or something. On the other hand, value refers to something’s usefulness, worth or importance. In an organisation, value and impact are the outcomes of the organisation’s actions, stakeholders, and employees, besides the negative and positive effects they have on the entity and its environment (Stewart and Brown, 2019).

How people practice adds value to an organisation

Creating and maintaining a positive culture

People professionals could assist in establishing a positive organisational culture by creating practices, procedures and policies promoting mutual collaboration and respect (Stewart and Brown, 2019). They could also foster an inclusive atmosphere by promoting inclusion and diversity, besides encouraging employees to air their opinions and ideas.

Top talent attraction and retention

People professionals could assist organisations in identifying and recruiting the best candidates for vacant positions. Besides, they could establish and execute training and development programs which assist employees in enhancing and developing their roles (Stewart and Brown, 2019). This makes them more valuable to the entity and has a lower likelihood of leaving.

Methods organisations can use to measure the HR impact

Cost-benefit analysis

This approach measures the costs and benefits of a people practice to determine its impact. This encompasses looking at the costs linked with training, recruiting, and other people practice activities and comparing them to the benefits they lead to (Bailey et al., 2018). It assists people in practising departments and deciding the activities worth pursuing and those that are not.

Return on Investment (ROI)

It measures the total loss and gains a people practice activity generates compared to the invested amount. It looks at the costs linked with the activity before comparing them to the expected results or benefits (Bailey et al., 2018). This is a helpful tool for people practice departments since it assists in evaluating their investment’s value in terms of monetary and non-monetary returns.

Reasons for measuring people practice value

Improved employee relations

People practice could assist in building better associations between the employees and management, leading to a more motivated and productive workforce. People professional practices could assist in resolving conflicts, creating policies which support employee growth and offering guidance to managers on the best ways for their team management (Bailey et al., 2018). This could improve employee loyalty, engagement and trust and result in better performance from the two sides.

Increased efficiency

People practice can assist in streamlining procedures and processes within an organisation. This could include establishing training processes, recruiting and onboarding new staff, and giving policies and guidelines to handle employee grievances. By developing standardised processes, businesses could decrease costs and save time. Besides, people practices could ensure that the employees work efficiently with clear goals and objectives (Bailey et al., 2018). This could result in better general performance from the entity, increased productivity and improved performance.

References

Bailey, C. et al. (2018). Strategic human resource management. Google Books. Available at: https://books.google.co.ke/books?hl=en&lr=&id=ghFQDwAAQBAJ&oi=fnd&pg=PP1&dq=Human+resource+management-+book&ots=nSWWFsUQvm&sig=CBr7aiBeGCvK7UHKW6svYACsq3Y&redir_esc=y#v=onepage&q=Human%20resource%20management-%20book&f=false

Stewart, G. L., and Brown, K. G. (2019). Human resource management. Google Books. Available at: https://books.google.co.ke/books?hl=en&lr=&id=53eYDwAAQBAJ&oi=fnd&pg=PA2&dq=Human+resource+management-+book&ots=XFzIkip39r&sig=tMIegQ2vGZDoRT_GcPHNokFqD0A&redir_esc=y#v=onepage&q=Human%20resource%20management-%20book&f=false