Enterprises are simply a collection of individuals, which is why effective HR is essential for fostering a positive business culture. Additionally, there are economic benefits linked to a happy and engaged workforce, which in some cases is at least partially due to successful HRM. Bloomberg Business reported that “…lost productivity due to employee disengagement costs more than $300 billion in the U.S. annually…business unit sales and profits at one point in time are predicted by employees’ feelings about the organization at earlier points in time.” To gauge the ROI of your enterprise to see if you have happy and engaged employees, try using the free ROI calculator.

The overarching role of HR is the management of all people within an organization, such as candidate recruitment, employee training, ensuring employee wellness, workplace legislation awareness, and safety. However, because no two enterprises are the same, no two HR departments should be the same. Some companies will find that it is most beneficial to outsource HR, while others will require a large team. Many enterprises with fewer than twenty employees believe they can do without an HR department, however viewing size as the primary issue oversimplifies the situation.

Enterprises should consider if:

• strategic services are required
• requirements are simply transactional services
• the department will function as a profit or cost center
• the breadth of the needed HR services

For example, if you are a relatively new enterprise specializing in professional services and growing exponentially, you need to onboard the right people fast. Hiring the wrong person would be detrimental, and this task may be beyond the scope of HR. In this case, it may be profitable to hire a strategic HR partner from outside your enterprise.

One method to determine the best HR fit for your enterprise is to decide if you need single source service, multi-vendor delivery, or an in-house department. TriNet suggests the following (among many others) to help you come to a decision based on the needs of your enterprise:

• Liability protection
• Performance management
• Employee development

Enterprises should be tailored to fit the country they work within. If a U.S. enterprise has an office in a foreign country, the HR enterprise must adapt to local laws and should adapt to at least some local customs. If a corporation has a policy against receiving and giving gifts, it may be advisable to change the policy in that country in order to show respect towards the cultural norm in that culture. Multinational Enterprises need to have HRM that can adapt to different cultures and have an attitude that there can be more than one right way to do something. In contrast, HRM in domestic enterprises can have stricter protocols because there are fewer nuances within the company.

Contrary to what many HR articles might say, it is important not to over generalize the characteristics of age groups such as Baby Boomers, Gen Xers, Millennial, and the Gen Z up-and-comers. Of course, a company of mostly Millennials will likely have a different company culture when compared to a corporation primarily composed of Baby Boomers. However, that does not mean that people will behave according to their groups, particularly at an individual level. HR should focus more on the nature of the company culture rather than thinking of their workforce regarding age units. Across all generations, employees want to feel valued and have a sense of purpose. It should be the job of HR to find out the best way to meet these objectives based on the company culture.

The benefits of effective HR are numerous and should be tailored according to the nature of your enterprise. Investing in HR is proactive rather than reactive towards creating a healthy work environment for all employees. Happy and engaged employees are less likely to search for other work and are more inclined to be productive colleagues; in turn creating a better ROI for your enterprise. People are more likely to participate in communities if they feel that they can take part and that their voices matter. Having effective HR ensures that employees can do just that.

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