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By Dr. Yvonne Foster
Special to the Financial Independence Hub
The success of every business depends on so many things, one of which is strategic human resource planning. If you are a start-up organization, you will benefit greatly by taking the advice of an HR consultancy firm or a trained HR agent who will pilot the affairs of your organization.
Poor human resource planning has a long-term and immediate influence on management policies, employee recruitment, corporate profitability and organizational functioning. In this post, we are going to talk about effects of poor human resource planning:
Poor HR planning and Management
If you have a poor or incompetent human resource department, it will have a negative impact on your organization, there will be no or poor training and re-training of the employees. Also, if your executive management does not pay enough attention to HR best practice it will lead to poor decision making process and critical mistakes. If you have a poor HR system, you will be liable to have employees that won’t have the best interests of your organization at heart.
Unmotivated employees
Having a poor HR system has so many drawbacks. It can lead to poor team building and personality conflicts, and most experienced employees may be uncomfortable with the work environment.
Adversely, there would be gross underutilization of their skills. Poor HR planning will give rise to lack of incentives, poor motivation, poor performance, and perhaps also the production of poor products and services.
Employee requirement mismatch
Recruiting and hiring the right talent is a continuous process. An HR professionalwith poor communication skills and lackadaisical attitude will be unable to address organizational and workforce requirements.
When there are vacancies and job postings, you don’t have to fill the positions with whoever applied or to unemployed family members and friends just because they are jobless. Instead, what you should do is to hire the people who have the skills to do the work effectively.
Impact on Bottom line
An ineffective or dysfunctional human resource management strategy will have a negative consequence in the organization. It affects both the employee productivity and performance of the business. This will have an impact on the bottom line of the company.
Decreased productivity
Poor human resource planning can have a dangerous effect on the productivity of your organization.
Unproductive employees will not be engaged in their specific job responsibilities or duties. Some of the things that lead to an unproductive workplace are lack of change, lack of motivation and poor management strategies.
Effective HR team ensures both the employers and employees are engaged with the right training and resources that will enable them to meet the corporate goals. There will be a decline in employee productivity, if the HR fails to implement workplace morale and effective management training.
Loss of Business
Poor human resource planning may force many employees to quit, and creates a negative impact on the organization. It will affect the organizational working culture. If the HR department is not properly working, it will lead to loss of business.
When the business is not moving forward, the company will find it difficult to pay salaries, and eventually the competitors may overtake you and take over your clients within the shortest possible time. You will lose the business if you no longer have a grip on your customers and workforce.
Dissatisfied customers
Poor human resource planning can make you to have dissatisfied customers. Many businesses today have gone online. So, if you are not doing well, there are chances users will prefer to complain publicly about your poor HR, customer service, products or services on your online pages.
A good number of consumers today won’t buy from companies that have complaints unattended to. There are also some customers who will never complain publicly and simply stop doing business with you. So, to ensure you don’t have dissatisfied customers, make sure you address their issues properly by attending to their complaints.
Do not be afraid of complaints. They can serve as sources of learning; they show you areas you need to improve, and where you are getting it right. If your internal HR resourceis not handling their work with professional finesse, you can either send them to HR training or engage an HR outsourcing service provider.
Conclusion
Poor HR planning will lead to so many negative outcomes, including labor shortages, de-motivated and dissatisfied customers. Poor hiring of talent will be expensive for the organization, because you will have to spend more money in training, re-hiring and so on.
Recruiting the wrong people will result in customer loss, ineffectiveness, and errors during work, legal issues, loss of competitiveness, loss of reputation and will ultimately impact the company’s bottom line.
Dr. Yvonne Foster, MD leads the small dedicated team at Lotus HR, and has worked as an HR professional for over 25 years across the public, private and 3rd sectors. She has managed diverse complex HR projects for the NHS, numerous London borough councils, and many small and large businesses in the UK.
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