If you have watched television or read any newspapers or magazines, you have undoubtedly come across reports dealing with ethics and legal challenges to business practices (such as the discrimination lawsuits against Wal-Mart), off-shoring and outsourcing of jobs (such as IBM plans to send 5,000 jobs to India), and changes in benefits and pension plans (consider Whole Foods’ health care plan, which has a large deductible of $1,500 but allows employees to decide how to use the monies the company deposits to their health care account). Also, companies such as J.M. Smucker (the jam and jelly company), the Container Store (the storage and organization), and Edward Jones (financial services firm) give employees a chance to make a difference at work and as a result have received positive media attention for being included on Fortune magazine’s list of “The 100 Best Companies to Work For.” These media reports highlights how choices that companies had made about Human Resource Management (HRM) Practices influence employees, managers, shareholders, the community, and ultimately, the success of the company. (p.VIII, Human resource Management: Gaining a Competitive Advantage, 5th Edition)
What does this insightful observation implies?
This only tells us that HRM professionals are now becoming indispensable members of their organization. In fact, according to the US Department of Labor Bureau of Labor Statistics:
HRM Professionals held about 868,000 jobs in 2006. The following tabulation shows the distribution of jobs by occupational specialty:
Further, BLS sees a projected increase of 16% by 2016.Human resources, training, and labor relations managers and specialists were employed in virtually every industry. About 17,000 managers and specialists were self-employed, working as consultants to public and private employers.
- Training and development specialists -210,000
- Employment, recruitment, and placement specialists -197,000
- Human resources managers -136,000
- Compensation, benefits, and job analysis specialists -110,000
- Human resources, training, and labor relations specialists, all other -214,000
The private sector accounted for nearly 9 out of 10 jobs, including 13 percent in administrative and support services; 10 percent in professional, scientific, and technical services; 9 percent in health care and social assistance; 9 percent in finance and insurance firms; and 7 percent in manufacturing.
Government employed 13 percent of human resources managers and specialists. They handled the recruitment, interviewing, job classification, training, salary administration, benefits, employee relations, and other matters related to the Nation’s public employees.
Here are some implications I have in mind:
- HRM Professionals are indispensable in corporate or business planning. They now play a key strategic role in the direction and future of businesses. Human resource is no longer seen as a CAPEX or capital expenditures. Employees with talents, professional experience and skills are now investment. Hence potentials’ development hinges on the programming initiated by an organization’s HRM Department.
- HRM Professionals are indispensable in recessions. In a economic slowdown were downsizing and retrenchment are commonplace, these professionals are in the forefront in ensuring that employees are not summarily displaced but also compensated and placed on reserve when a better economy starts grinding. They ensure that only competent and qualified employees remained in employ for the business to continue operating at its best.
- HRM Professionals are indispensable in the hiring process. The success of an organization hinges on the kind of employees it attracts and keeps. The HRM professional is trained and equipped to take on this role and ensure that the organization has only the best employees suited for various jobs and functions.
- HRM Professionals are indispensable in the financial management of the company. Salaries, wages, benefits and perks can drain a company’s resources when not managed properly. Retaining competent employees entails providing a competitive compensation package. Competitive package simply means keeping your employees happy. An HRM professional is able to measure and maintain the important elements needed to make these things work and in the process help increase the profitability of the company.
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About the Author
Nor Franco is the Managing Director and Virtual CEO of nextManager.net. He's a former corporate executive whose passion is bringing out the full potential of HR in Businesses. This time that passion is pursued through Virtual Management. He writes and blogs about his management views and insights here. Follow him on Twitter.
