Effective personnel management is the key to an engaged and productive workforce. It motivates employees and aligns them with the company’s mission.
Managing personnel effectively requires balancing personalities, resolving disputes and adapting to changes in the employment landscape.
In this article, we’ll explore personnel management and its role in modern business. We’ll also discuss emerging personnel management trends and the best practices for incorporating them into your organization.
“Personnel management” definition
Personnel management is a strategic approach to managing employees. It ensures the right people are in the right roles and get the resources and support they need to achieve company objectives. Personnel management spans various functions, including hiring, onboarding, training, evaluation and retention.
Personnel management tasks in a typical day might include:
Holding a team check-in to discuss projects and set priorities for the day
Reviewing resumes and doing phone screenings for new employees at the company
Mediating a discussion between two team members having a disagreement
Conducting performance appraisals, providing feedback and setting new goals
Personnel management vs human resources management (HRM)
Personnel management was once a subset of human resources management. It focused on functional tasks like attracting, engaging and retaining employees, while HRM focused on long-term strategic planning.
Today, personnel management and HRM are the same thing. They’ve blended to create a more modern form of management focused on aligning employee behaviors with company objectives.
Let’s take a closer look at personnel management and what it involves.
Types of personnel management
There are three main types of personnel management: operational, strategic and tactical. Each focuses on different aspects of managing a workforce, providing a holistic approach to human resource management.
Operational personnel management
Operational personnel management deals with day-to-day tasks that keep the workforce going. It’s the hands-on part of personnel management that includes:
Providing IDs and equipment
Processing payroll
Keeping proper records
Ensuring compliance with labor laws
Handling employee conflict
Conducting performance reviews
Operational personnel management focuses on the details, ensuring employees have the support they need to perform at their best. It’s the foundation for strategic and tactical personnel management.
Strategic personnel management
Strategic personnel management involves aligning your employees with the company’s long-term goals and vision. Think of it as a high-level blueprint for managing your employees.
Critical functions within strategic personnel management include:
Workforce planning. Personnel managers identify their company’s future staffing needs and how to achieve them. This proactive approach involves looking at current capabilities, finding gaps and ensuring the company has the workforce required to grow and thrive.
Leadership development. Strategic personnel management entails nurturing and advancing leaders within the company. Investing in management courses and training programs helps you develop leaders’ skills so they support the company’s needs.
Strategic personnel management builds a strong organizational culture by ensuring everyone is on the same page. Recruitment, onboarding and training allow employees to fit in so you can create a productive and supportive environment.
Note: Pipedrive’s cloud-based recruitment CRM helps manage and automate hiring processes. In addition to its powerful customer relationship management features, it can build a pool of candidates, streamline applicant tracking and reduce hiring time.
Tactical personnel management
Tactical personnel management turns high-level personnel management strategies into actionable steps.
It focuses on initiatives that boost productivity and support the company’s long-term goals. An example of a mid-term initiative might be a multi-year leadership development program that helps employees prepare for future roles.
Tactical personnel management includes:
Recruitment strategies
Compensation and benefits planning
Employee training and development programs
8 core functions of personnel management
Personnel management uses a variety of crucial functions to manage and organize a workforce. These core functions include:
| Core function | Description |
| 1. Recruitment and selection | The recruitment and selection process involves creating job descriptions, posting vacancies and sourcing candidates. It also includes screening and interviewing applicants, conducting background checks and making job offers. |
| 2. Onboarding and orientation | A good onboarding process introduces employees to the company culture, personnel policies and team members. It also equips them with the tools and information needed to succeed in their roles. |
3. Training and development | Personnel management strategies often include employee development plans and training to sharpen employees’ skills. For example, a company might offer training workshops, e-learning material or credits for external courses. |
| 4. Performance management | Performance management requires setting goals, tracking each team member’s performance and providing constructive employee feedback. |
| 5. Compensation and benefits | Compensation and benefits might include salary packages, health insurance and healthcare benefits, retirement plans, paid leave, incentives and bonuses. A good personnel management strategy considers industry standards and employee expectations to provide competitive benefits that motivate employees and fit within the company budget. |
| 6. Employee relations | Employee relations are about maintaining positive connections between employers and staff. They aim to create a more cohesive, collaborative and productive work environment. |
| 7. Legal compliance and management | Compliance and legal management involve staying current on labor relations laws, industry regulations and ethical standards. They also require applying new human resources policies and saving records. For instance, tracking job applications, offer letters, safety protocols and payroll information keeps you in line with labor laws and organizational policies. |
8. Employee engagement and motivation | Personnel management introduces initiatives that create a supportive work environment through team-building, regular feedback, rewards and work-life balance programs. Unlike benefits and compensation, these initiatives focus on employee well-being, leading to a deeper sense of engagement and loyalty. |
Why personnel management matters
Personnel management isn’t nice to have, it’s fundamental to managing a company. Here are some of the main benefits of an effective personnel management strategy:
Enhanced productivity
Effective personnel management provides employees with what they need to excel at their jobs. A structured environment, training and support allow employees to work more efficiently.
Higher employee satisfaction
Supportive workplace environments lead to satisfied employees. Good personnel management practices, from onboarding to performance management, can significantly improve satisfaction.
For instance, a Gallup study found that employees with “exceptional onboarding experiences” are 2.6x more likely to find their job satisfying. Satisfied employees have higher retention rates, are more productive and contribute to a positive workplace culture.
Increased employee retention
Robust personnel management strategies promote engagement through recognition programs and career development opportunities.
Engaged employees are more committed to their roles and less likely to leave the organization. Reducing turnover also improves financial savings and creates a more stable workplace.
Better talent attraction
A strong personnel strategy can make a company more attractive to top talent. Prospective employees are more likely to join a firm known for growth opportunities and support.
They will notice company statements emphasizing career development options and job descriptions highlighting attractive benefits. They’ll also ideally hear about the welcoming work environment from current employees.
Improved workplace culture
Consistent and fair company practices create positive organizational cultures. Effective personnel management sets clear policies that apply to all employees.
This universal application provides equal opportunities, eliminating potential biases. It helps create a space where everyone feels valued and included.
Robust workplace cultures motivate employees and drive business growth by promoting inclusivity and ensuring work-life balance.
Better compliance and risk management
Personnel management ensures a company sticks to legal standards. With ongoing training, regular audits and good record-keeping, companies can address problems quickly while avoiding lawsuits and fines.
4 emerging personnel management trends and best practices
Enhancing employee productivity, satisfaction and compliance builds a strong foundation for business success. Here are the emerging trends and best practices shaping the future of personnel management.
1. Remote and hybrid work models
The rise in remote and hybrid work models has led to technological advances and updated employee expectations. As a result, companies should know how to manage employees working from home.
Flexible work arrangements that let employees split their time between home and the office can improve work-life balance and productivity. They also allow companies to expand candidate pools to areas outside their physical location.
To adapt to changing work models, consider these tips:
Invest in digital collaboration tools. Equip telework teams with tools for virtual meetings, communication and project management. Improve collaboration by allowing employees to keep in touch and work effectively from home.
Establish clear remote work policies. Develop guidelines that state clear expectations, roles and responsibilities. Improve consistency and fairness between employees at home and in the office. Define work hours, availability, communication options, data security and performance metrics.
Focus on outcomes rather than hours worked. Shift from tracking hours to assessing the quality of an employee’s work. Set measurable goals or key performance indicators (KPIs), track results and provide regular feedback to get the most out of remote teams.
Consider hiring an outside team. Managing hybrid and remote teams can be challenging. Companies can employ personnel management consulting agencies to implement new procedures.
2. Enhanced focus on employee well-being
Organizations are beginning to focus on improving employee well-being to reduce absenteeism and turnover. The goal is for employees to have good physical, mental and emotional health while performing better in the workplace.
Here are a few tactics to improve well-being:
Implement wellness initiatives. Introduce programs that promote health benefits, like on-site fitness programs, nutrition workshops or health screenings. Customize them to meet your employees’ diverse interests. Encourage participation with incentives and a supportive environment.
Provide access to mental health resources. Mental health is a crucial part of overall well-being. Many companies now provide resources like counseling services and stress management workshops to help employees manage their mental health.
Encourage work-life balance. A healthy work-life balance prevents burnout and creates sustained productivity. It includes flexible hours, remote options and regular breaks. Managers should also lead by example, respecting boundaries and avoiding after-hours communication.
Meet with employees often. Regular check-ins help managers gauge employee well-being. Consistent one-on-one meetings give employees a safe space to voice their concerns and feedback.
3. New advancements in HR technology
Companies are beginning to use advanced technology like generative AI (artificial intelligence), big data and personnel management software to streamline HR processes. These technologies help HR departments:
Automate workflows and repetitive manual tasks
Use data-driven insights to forecast trends and behaviors
Tailor HR services to individual employees
Create high-performance work systems that drive sales results
For example, cloud-based HR management systems (HRMS) integrate most HR activities into a single platform. These systems store employee data in one place, making it easier to find information. HR teams can access the system from anywhere, making it easier to manage employees remotely.
A robust CRM can also help HR stay on top of employee performance and help balance workloads. For example, Pipedrive’s Team dashboard lets you see employee workload and real-time performance reports and deal progress.
Companies are also using AI to improve personnel management through data-driven decision-making. During recruitment, machine learning algorithms scan and shortlist resumes based on predefined criteria, speeding up the screening process. They can also schedule interviews, send reminders and answer candidate questions in real time.
Applying advanced personnel management technologies can streamline operations and position your company as an industry leader.
4. Reinventing diversity, equity, inclusion and belonging (DEIB)
There’s a current drive toward more diverse workplaces. A study by SurveyMonkey reports that nearly 80% of people want to work for companies that value inclusion and equity.
Making a safe, supportive workplace for employees regardless of gender, ethnicity, age, sexual orientation or religious beliefs benefits your organization as well. For instance, our recent State of Sales and Marketing 2024 report found that women in sales are 32% more likely to reach their targets when they feel supported in their career growth.
DEIB should be a priority. For your efforts to be effective, employees need to see them as authentic, which isn’t always easy. Gartner even reported that 44% of employees say their colleagues feel alienated by their company’s efforts in this area.
Here are some best practices to promote DEIB principles and drive meaningful results:
Use unbiased recruitment processes. Removing cognitive bias is difficult. Diverse panels, inclusive job descriptions and standardized interview questions ensure hiring based on skills rather than personal characteristics.
Show meaningful commitment from leaders. Company leaders should actively participate in DEIB initiatives. According to Edelman, 80% of employees want their CEOs to take a stance on social issues like discrimination.
Foster an inclusive culture. Establish company values like empathy, respect and collaboration. Celebrate different perspectives, backgrounds and experiences. Take a holistic approach by organizing events celebrating diverse cultures, holidays and traditions.
Companies must move beyond gestures and commit to impactful initiatives that create truly inclusive workplaces. By focusing on authenticity, DEIB can become vital to the brand identity.
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Final thoughts
Effective personnel management optimizes the workforce and creates a positive company culture. It’s the bridge that connects employees to strategic goals. Analyzing trends and applying best practices allows businesses to create engaged teams that grow with the company.
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