What is HR Risk Management?
An organization faces several risks from internal and external factors. HR Risk management is defined as identifying the problems within the organization and taking proactive steps to resolve them. One of the internal risks that can arise within the organization is from its employees. This could involve improper employee behaviors, improper employee management, problems during the recruitment process, skill shortage, poor financial management, etc.
How does HR risk management increase productivity?
Proactive solutions to the problems ensure that you are well prepared to tackle any problem in case a risk arises. HR risk management helps to take appropriate steps to mitigate the risk. It confirms employee satisfaction and helps them to achieve organization’s objectives. Some of the ways to ensure increased employee productivity are as follows:
1. Trustworthy relationship between Management and Employees
Trust is the core element that builds bonding between supervisors and subordinates. Creating a trustworthy relationship between the company’s management and the employees is essential. It allows the employees to be open about their problems to the management. The managers can identify the problems, and take appropriate actions to resolve these problems. This helps to increase employee satisfaction and encourages them to increase their productivity.
2. Alignment with Organizational Goals
Managers should make sure that employees’ personal goals are well aligned with the organization’s goals. The managers should address any role ambiguity or role conflict that is faced by their employees and give them directions to achieve organizational goals. Once employees’ own goals are aligned with the organization’s, they are clear with the organizational vision and mission then they would be motivated to increase their work output.
3. Employee Motivation and Engagement
HR risk management plays an integral role in motivating employees and increasing engagement. Leaders need to identify the gap in employee engagement and adjust employee experience accordingly. The managers can motivate employees through extrinsic rewards like bonuses and incentives. Additionally, the employees should be given job autonomy that will aid in motivating them intrinsically and create an open environment that encourages feedback.
4. Conflict Resolution
Workplace conflict is one of the risks that can cause a loss in an organization’s & employee’s productivity, increase stress, and result in high turnover. It is important to effectively manage any conflict that arises in the organization. Proactive steps like collaborative working space and the formation of codes of ethics can help in managing these issues.
5. Fair Evaluation and Feedback
When an organization operates with fairness, justice, and follows ethics, it boosts morale and a positive mindset which eventually leads to organizational growth. Effective managers should provide regular feedback to employees on their performance based on proper merit to ensure fairness. This effective feedback will help the employees to realize the areas they need to improve on and will then boost productivity.
Conclusion
Human resource plays an essential role in ensuring the proper functioning of the organization. HR managers should take the right steps to reduce the impact of the risks headed towards the organization through well prepared risk management plans. With proper steps taken, employees would be motivated and in order to increase employee performance.