Competitive Advantage Through Investment in Employees

Competitive Advantage Through Investment in Employees
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  • 0:00 Competitive Advantage
  • 1:21 Recruiting the Best Staff
  • 2:41 Human Resources Development
  • 4:06 Challenges to Employee…
  • 5:14 Lesson Summary
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Lesson Transcript
Instructor: Allison Tanner
This lesson explores how companies can gain a competitive advantage by investing in their employees. We also focus on the role that human resources has to play, while examining obstacles that companies may encounter along the way.

Competitive Advantage

TT's high tech firm has grown from a tiny startup to a well-established company. Despite its success, the firm can't seem to keep staff, and employee morale is low. Desperate to stay ahead of the competition, TT's calls in HR Guy, a human resources specialist, to help the firm improve its business through its employees.

HR Guy is ready to get the ball rolling. He tells TT's that it is extremely important to invest in employees, meaning it should dedicate resources to hiring the best staff and ensuring great employee satisfaction. He tells TT's that this will help it gain a competitive advantage. This means investing in the firm to allow it to stay ahead of the competition by offering better value, products, and services to their customers.

HR Guy explains that investing in employees helps to create a competitive advantage by attracting the best people, increasing employee retention, improving employee engagement, and building a strong team environment. However, in order to experience these benefits, TT's needs to create an employee investment plan. TT's management team listens closely while HR Guy walks them through the various options for investing in their employees.

Recruiting the Best Staff

Investing in staff currently working for TT's is important, but HR Guy explains that investment begins with the hiring process. TT's needs to make sure that it has processes and procedures in place that attract the best candidates.

To start, HR Guy tells TT's that it'll need to have attractive employee incentives, or benefits that it offers employees. These incentives could be good vacation plans, health benefits, flexible leave time, retirement benefits, and company stock options. Other options include providing snacks, catering meals, allowing staff to choose their health plan, and offering unlimited time off. While some of these options might seem extreme, they are becoming popular among businesses that want to show they are investing in the well-being of their staff.

TT's will also want to be sure to develop a good reputation as a company interested in advancing its employees. This includes providing interesting and challenging work, offering advancement and education opportunities, and organizing staff outings and team vacations. HR Guy explains that if TT's is able to provide good employee incentives and build a strong reputation for caring for its staff, the firm will be able to gain a competitive advantage by attracting and keeping better employees than competitors.

Human Resources Development

Because human resources (HR) is the team responsible for hiring and training staff, TT's will want to make sure that this team is excited to bring on the best team members. The HR team also needs to be properly prepared to deal with any employee issues that may arise.

In addition to creating a plan for attracting the best team members, TT's also needs to motivate current employees, including the HR team. HR Guy says that a highly motivated HR team is more likely to engage with and hire the best talent. Some options for motivating HR teams include asking them for input on training programs, allowing them to be leaders in the organization, allowing them to create programs for tracking employee performance, and providing them with a way to measure employee satisfaction.

TT's will also need to be sure that it can manage HR activities. Management in this sense means ensuring that the team has everything they need to complete their jobs, while also making sure the team is following the established guidelines for hiring and encouraging employee satisfaction.

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