Faced with the dynamic market situation caused by the health crisis, organizations need to review their investments in an adequate way and with optimal resource management. The need for adaptation on changed circumstances will put the focus on the HR sector, which receives challenging task – analysis and decision on the optimization of human resources
For companies whose business volume has changed due to the Covid19 pandemic, several strategies are available: recruitment freeze, abolition of non-salary compensations, redistribution of work, but also optimization of the number of employees.
As an essential point, the company should be familiar with its talent pool or, more precisely, who the top talents and key people are that we should motivate and keep at all costs. Research has shown that companies that had lost their key people in a crisis period had difficulties in bringing back their previous market position. Furthermore, having systematized data about employee performance highly helps the HR sector to set a foundation in analysis and planning. The question then becomes: is performance the only source of information that we should consider when optimizing human resources? The answer is a firm no.
In case we take performance as the only criterion, we increase the risk of making wrong decisions and potentially losing people who share the company values, knowledge, and network. We would overlook the fact that some employees have a hidden potential to perform well in other job positions because they are not performing at a current one. By deciding to keep or promote certain top performers we would put them at risk of burnout just because we did not previously assess their strengths and weaknesses. It is necessary to take into account that performance results are influenced by external factors outside of an individual’s control, but also that results are often subjective ratings given by direct superiors.
Is performance the only source of information that we should consider when optimizing human resources? The answer is a firm no
What would then be a relevant source of information for making key decisions about human resources? We would like to point out that the answer is a professional assessment of employees, which provides quantified data on the potential, current competencies, motivation and aspirations of employees. By including the assessment centre in a toolset of the HR sector, deeper insight and analysis of intangible aspects are provided in comparison to performance metrics. The real benefit we get by the cross-analysis of assessment data and employees’ results with which we identify success criteria unique to a particular organization.
At Assert, we advise clients that the assessment centre, besides behavioural exercises and interviews, should include a valid and reliable psychometric test of personality, behavioural preferences, and motivation. In this way, we compare the individual’s qualities with the requirements of different jobs in the organization and find the best fit.
This comprehensive approach to employee assessment ensures data-based decision-making, increases the power to predict future performance, and reduces the possibility of error in human resource planning. Investing in high-quality HRM processes is a worthwhile investment. We should not allow ourselves to learn this the hard way, by adding up the costs incurred as a result of wrong decisions.