Internal Factors Affecting Human Resource

There are many factors that affect daily operations in the human resource function in any organisation. HR professionals need to remain vigilant and be ready to adapt in case any changes occur. HR should have a clear strategy with relation to the following internal factors;

Companies that are experiencing rapid growth will require their HR department to recruit and train new employees. This exercise can be expensive and time consuming for any organisation, although it’s worth it. HR should be instrumental in the decision making process when it comes to growth or consolidation of any organisation. In cases where the organisation is consolidating, HR will likely need to be involved in a redundancy process. HR will have to evaluate the employees that are being retained based on their skills and performance record. They should embark upon improving the company’s culture and the working environment. They may even have to re write job descriptions adding additional responsibilities to a reduced workforce.

Internal policies and employee relations

HR is affected by internal procedures and policies. The human resource department should conduct training and development to all members of staff, in doing so will not only upskill those employees making them more effective in their roles but also ensure the company has competent personnel when promotion opportunities arise. HR are expected to monitor retirement dates of employees, thus ensuring they are prepared with new employees to fulfil those job roles.

Competition in recruitment

The market can be competitive. Often competitors may have more favorable contract terms to offer in regards to pay and benefits. It’s common for candidates to seek large organisations to work for as its often perceived better prospect can be achieved in larger companies. This can put smaller companies at a disadvantage as candidates opt for other firms. Due to brand awareness, it can be the case that larger companies can avoid the extra costs associated with advertising or utalising recruitment agencies for new positions as potential candidates will proactively seek to join these companies.