Which one is better, Soft HR vs. Hard HR? Managing a large group of people and assets is not easy, that's why there is a real need for a whole department that is appropriately dealing with both. So what is Soft HR, and how is it different than Hard HR? What are they really, and how is each best implemented to fit your company's needs? This article will explore these two distinct and unique concepts in human recourses.
What is Soft HR?
When we say Soft HR, we mean treating all your employees like they are an essential cog in your company's vast machinery. As your employees are the core of your business, you go to great lengths to focus all your energies on their individualistic needs. Soft HR means that you focus on their long-term commitment to your company and its values. You always try to be as open about the state of the company and your employee's contributions to it.
Soft HR approach
The Soft HR approach means you celebrate your employees' successes within the company and reward them accordingly with various gift cards or bonuses. In addition, you try to foster a sense of community so you will benefit from a more positive workplace when there is a chance of advancement. Finally, always try to promote within the company or train your current employees for more managerial work if they should show an interest in doing so.
This sounds pretty great, but there are some drawbacks to Soft HR. One obvious one is the cost. It costs a lot to develop your employee's new skills, giving them rewards with monetary value, raises, etc. One pretty big potential drawback is complacency. If people are being pampered will they try hard enough?
What is Hard HR?
Hard HR means you look at your employees as you do anything else in your company. They are there like computers are there or trucks and are all equal in the sense that they are making your business work. The Hard HR approach is not worker-friendly and is more profit and task-oriented. There is no need to train and better your existing staff when you can downsize and hire the people with the needed skills.
Hard HR approach
With a Hard HR approach, the number of employees fluctuates almost constantly. Communication with higher-ups is limited, and there is little to no transparency. With no openness and transparency usually come lower wages, typical with the manufacturing business. Rigid hierarchy and kept as impersonal as it can. They focus purely on performance and what employees can give to your company.
So what are some of the characteristics of a Hard HR approach? With this kind of approach, the centralized leadership of a company is in total control of every aspect of the business. This means that if your company needs to take some less popular decisions, like letting go of some of their workforces, management is quicker to do so. The disadvantages are employees' low morale due to insufficient job security and often being micromanaged.
What is the better approach?
Is Soft HR or Hard HR the better approach? It all depends on your own business, what kind of work culture you want it to have, and your business needs. First, you need to know that you don't need to go all-in on either of these approaches. You can merge or combine different aspects of the two. Sometimes you run a business that doesn't leave much room for employee training beyond their current position. This can especially ring true for manufacturing businesses where the profit margins can be slim.
However, in some areas, the workforce is hard to come by, and you have to do whatever it takes to keep a low turnover rate, or it can kill your business. Sometimes it is best to classify your departments and run them accordingly. Some aspects of your business might require a more rigid, hands-on approach, while others offer some flexibility. The important thing is to be mindful of your budget and balance long-term and short-term gains.
Conclusion
Today's managers and companies tend to go for the more Soft HR approach than the Hard HR one. Millennials tend to gravitate more to companies that value individuals and aren't micromanaging their workforce. They are more communication minded and prefer to have more approachable management. A recent Gallup poll estimates that millennial turnover costs the U.S. economy $30.5 billion annually. If you are a business that exclusively employs millennials, a Hard HR approach may not be the best fit for your company's needs. Despite any short-term losses you might experience. However, you may not have that luxury in today's competitive marketplace.