Your business is weathering a down and uncertain economy.  Competition is fiercer than ever.  Employment and health legislation changes are swirling around you. Hope for growth is perhaps finally in sight.  And your employees are wondering what it all means.   The Great Recession has no doubt changed your workplace.  Now is the time to step back and review your human resource practices and policies.  Have they kept up with the changes?  Are you prepared for the future?

“Human resources” is really your people strategy for the new economy.   As Lee Iacocca once said: “Business, after all, is nothing more than a bunch of human relationships.”   No doubt you are paying close attention to your customer relationships, but equally important are your employee relationships.  Making sure the right people are in the right jobs doing the right things at the right times – and feeling good about it – will be the key to success now more than ever.

So there is no better time than now for an “HR audit.”  This is more than an appointed HR person or an outside consultant giving your handbook the “once over.”  Senior leaders and owners should take stock of the big picture and make sure people practices are aligned with the direction of the company.  Your new business plans and strategies for the new world order must both guide, and be supported by, how you hire, retain and motivate your people.

Effective HR practices have at least 3 major outcomes.  First, they help manage your business efficiently.  Efficiency means aligning work and behavior with the direction of the company.  It means hiring, reassigning or rearranging people into the right roles.  And it means managing records, hours, wages and benefits quickly and accurately. 

Second, strong HR practices protect you from legal problems and costly disputes.  Employment related lawsuits have risen dramatically.  Discrimination. Harassment. Wrongful discharge. Safety violations.  These are the consequences of a stressed workforce. 

Third, excellent HR practices build loyalty and motivation for your best performers.  You need to hold onto your most promising and productive workers.  They are the key both to surviving the tough times and thriving when things get better.  Fair and consistent practices build trust.  Recognizing strong performance builds motivation.  And continually seeking opportunities for the growth and development of your A-team builds long-term loyalty.

Now is the time for a systematic review of your human resource functions.  Ask these 10 questions:

1. Have you articulated and communicated the new direction or vision for the company?
2. Do job descriptions and performance evaluations reflect this new direction?
3. Do you understand the core competencies necessary for all employees to reach your new objectives?
4. Are you hiring or placing people in roles based on these competencies?
5. Are your policies and procedures up-to-date and legal given changes in the law and your workplace?
6. Are your personnel information and documentation systems efficient and effective?
7. Have you let safety practices slide during the tough economy?
8. Is your compensation plan competitive? 
9. Are you reviewing the impact of sweeping health care reform on your benefits?
10. Are you building strong teams and a trusting environment so your people make sure “their” business succeeds?

Involve your leaders and people in this process.  It is a strategic imperative.  And know that help is just a phone call away.