This paper will discuss the topic of contemporary human resource practices. Nowadays, HR managers shift from traditional HR management, focused on handling labor relations, to strategic HR management, which aims to align HR practices with long-term corporate goals. Strategic HR managers recognize that people are the most valuable organizational resource; therefore, contemporary HR practices are directed toward managing people in such a way as to convert human capital into organizational value. The strategic approach to HR management can be seen in various HR functions, such as hiring, talent development, retention, and compensation. For example, HR managers have begun to realize that financial compensation is not enough for hiring and retaining the best possible candidates, especially when budget constraints exist (Instant Financial, 2022). Hence, they have to develop novel practices to turn employees into valuable corporate assets.
There are several contemporary HR practices used to hire and retain talent. One of them is to provide employees with greater flexibility (Instant Financial, 2022). This practice has become especially relevant after the pandemic because many companies had to shift to remote work, which is more flexible than in-office work. For example, when working from home, employees can adjust their workday length and choose their schedules. Another practice is providing constructive feedback, which is important because it keeps employees engaged in their work (Instant Financial, 2022). For instance, workers are likely to be more interested in the company’s goals if they receive continuous constructive feedback on how well they meet performance standards and what skills they could improve to perform better. One more practice is recognition and appreciation; a lack of appreciation is one of the three most common reasons for leaving a job (Instant Financial, 2022). In contrast, when organizations award well-performing employees with pay raises, promotions, or bonuses, it increases their loyalty and motivates them to work for the advantage of the company.
Reference
Instant Financial. (2022). Beyond money: Creative strategies to attract and retain employees. HR Drive.