FORTY FIVE PERCENT of Australian business managers rate their organisation’s HR and people-management practices, including performance management, as average or below average, according to The Hudson Report
FORTY-FIVE PER CENT of Australian business managers rate their organisation’s HR and people-management practices, including performance management, as average or below average, according to The Hudson Report.
The report, which surveyed almost 7,000 managers nationally, found that “most Australian business organisations have room for considerable improvement in their human resources practices”.
The key HR areas requiring the most attention include learning and development, performance management systems and improved leadership capability.
Possible causes of companies paying less attention to managing their people include the downsizing of HR teams by organisations as a cost-cutting measure and the devolution of HR responsibilities to operational levels of management.
A consistent effort across all initiatives will help build a strong relationship with employees and their level of commitment to the organisation, according to David Reynolds, general manager of Hudson’s Human Capital Solutions.
He said companies should take a holistic approach to managing their people, encompassing better leadership, communicating a clear long-term vision, effective reward systems and greater career opportunities.
“This takes an investment from the employer, if it is to be done properly, but the return on investment and the positive impact on the bottom line, will far outweigh the initial costs.”
The report also found that the inappropriate measurement of employee performance can be highly destructive and cause a breakdown in relationship, between the individual, their manager and the organisation.
It highlighted the importance of areas identified for development and improvement through a performance-management process being relevant to the business’ overall performance and that of the individual.
“One of the most effective ways to destroy employees’ motivation is to evaluate them on outcomes they cannot control,” the report found.
Furthermore, organisations without a thorough understanding of what drives business success will almost certainly struggle to find reliable and appropriate measures of performance.
The report rated telecommunications as the poorest performing sector in terms of HR and people-management skills, while advertising/marketing/media, resources and transport were also under par and in need of improvement compared to other industries.
