Human Resource Risk Management

Human resources are a growing field that will require additional skills and abilities from human resource professionals who must manage multiple locations across the globe. Risk is inherent in business and investing but new global challenges related to human resource management expands this risk considerably. The types of risks that human resource professionals will need to tackle are recruiting and retention, medical costs, ethical violations and processes/procedures.

Recruiting and Retention: Multinational organizations are constantly looking for strong talent to help lead their growth and expansion projects. Having strong workers helps to reduce those risks associated with the workforce such as errors and leadership (Hinton, 2003). Strong talent is needed to fuel the machine and if that strong talent is not found the company can loose steam.

Medical Costs: Medical costs associated with obesity and a lethargic lifestyle are rising (Tchankova, 2002). Human resource professionals and benefits managers will need to find innovative ways to reduce medical costs which may include healthy living training, pre-employment physicals and adjustable medical plans.

Ethics and Morality: As companies become more spread out around the globe managers and employees will find themselves more autonomous then any other time in history. These employees will have plenty of opportunities to discriminate, steal company assets, harass other employees, etc… Human resource professionals will need to monitor and discipline employees who violate acceptable norms of ethical conduct that are acceptable to multiple cultures (Winstanley & Woodall, 1996).

Process & Procedures: Proper policies and procedures can help steer operations into more productive methods. Human resources, typically being corporate by nature, are the masters of policy and procedure management. As companies become more global and complex the policies and procedures will need to find new and innovative ways of handling complex issues (Clark, 1998).

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Clark, I. (1998). Designing and sustaining an entrepreneurial role for the human resource function: strategic choice or competitive conditions?: Evidence from engineering process plant contracting. International Journal of Entrepreneurial Behavior & Research, 4 (1).

Hinton, M. (2003). Managing the human resource risk. Franchising World, 35 (2).

Tchankova, L. (2002). Risk identification-basic stage in risk management. Environmental Management and Health, 13 (3).

Winstanley, D. (1996). Business ethics and human resource management: themes and issues. Personnel Review, 25 (6).

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Murad Ali is a three time published author, a business professor, a human resource manager and helps companies get ahead by drawing more visitors. (Author Exposure and Website Customers) www.article-agent.org (Free author submission and website content) www.article-agent.net (Business articles) www.themodernbusinessworld.com (Dating articles) www.datingdesires.blogspot.com

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