Dr. Marco Antonio Rojo and Professor Mirtha Silvana Garat, researchers from the Universidad Europea del Atlántico (European University of the Atlantic, UNEATLANTICO), collaborate in a study on the effect of innovative human resources management practices on a company’s performance.
Managing human resources is a much more complicated task than managing a company’s capital or technology. Because the most valuable asset is your workforce to excel in the market. However, innovation and well-organized human resources (HR) are the key drivers for growth in terms of productivity and sales performance in a company.
Innovation is a basic factor in the performance of companies since it allows them to adjust to unstable market conditions and meet customer demands in order to stay one step ahead of competitors. Sustainable innovation can have a much greater impact by lowering costs, optimizing efficiency, and improving brand reputation.
On the other hand, innovative human resource management also contributes positively to business performance. By adopting innovative human resources practices and approaches, companies can generate a workforce capable of delivering new ideas, creating value, and excelling in the organizational environment.
Traditional human resources practices tend to focus on ensuring compliance with policies and regulations and preserving order. They are rigid practices that do not take into consideration the unique needs and aspirations of employees. While innovative human resources practices have a more flexible and dynamic approach that seeks empowerment, engagement, learning, and constant employee development. Innovative practices are designed to address changing business needs, such as the need to implement advanced technologies to facilitate communication, collaboration, and innovation.
Objective and results of the study
To this end, the objective of this research has been to analyze the effect of innovative human resource management practices, employee involvement, performance appraisal, reward and compensation, recruitment, among other aspects, on the performance of small and medium-sized enterprises. The variable, performance of companies, is represented by variables such as labor productivity, product innovation, process innovation, and marketing innovation.
The results of the study showed that most innovative human resource management practices have a statistically significant impact on the performance of companies in terms of labor productivity, products, processes, and marketing innovation. This shows that small and medium-sized companies can achieve better results by paying more attention to innovative HR practices to enhance their future growth.
If you want to know more about this fascinating UNEATLANTICO study, click here.
For further research, check the UNEATLANTICO repository.