Too many businesses make managing people too complex. The process of so-called “HR” is full of jargon confusion, which often puts a barrier between people that work in the business and those responsible for managing them.

Even the name of the department HR – Human Resources – is wrong. Nobody ever refers to themselves as a human resource; they are people! It is well to keep this simple thought in mind when you are involved in the day to day management of a business.

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An employer-employee relationship is both a financial and a social contract. All employers rely on the skills and endeavour of their employees, who are prepared to give up their time and energy in order that they can earn a living. Effective employer/employee relationships are those which are based upon both the spirit as well as the letter of the employment contract.

Successful businesses understand that being a good employer does not cost any money, which means that you can be a good employer during difficult economic times as well as in a boom. In fact, being a good employer saves money because it reduces ‘churn’ and avoids the need to replace people, which wastes time and money.

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