Human resources or Human resource management has changed after the advent of digital. Thanks to the internet and new technologies, various processes have been speeded up and simplified. In addition to this, the needs of companies have changed, and all employees are required to have computer skills.
The digital revolution is, in fact, radically changing all businesses. Today, everyone needs to move online to reach a greater number of users and also to be more attractive to their customers. In addition, new types of business have arisen such as digital agencies.
The task of HR is to guide workers in digitization. This means worrying about planning activities and training courses that allow employees to learn the new skills required by the market. To do this, there is a need for adequate training which must start from the entrepreneur.
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By continuing to read, you will have the opportunity to learn more about these topics:
- The meaning of human resource management ;
- Person in charge of human resource management;
- The management of employees in web agencies;
- Human resource management with digitization;
- The reasons for turnover in digital agencies.
What is meant by human resource management
Speaking of HR (human resources) management, or human resource management means considering company personnel as a resource. It is people with their skills and competencies who guarantee the success of the company in which they work. So to the question “Who is part of HR? ” One can safely answer: all employees.
This has always been true but, in the past and still today in companies that are not in step with the times, the vision one has of employees is very different. Often those who manage company personnel only have administrative tasks which correspond, for example, to:
- Creation of employment contracts;
- Management of holidays, maternity leave, and other types of leave;
- Registration of attendance and working hours;
Today, if you want to create a successful company, you have to ensure that Human resource management does not only mean personnel administration but also and above all development and training. This means motivating employees and enabling them to produce more by working better.
Why it is important to manage human resources
Dealing with the organization and the development of human resources is essential because it will allow your company to grow without it being abandoned by valuable employees.
The importance of this job also lies in the possibility of organizing your staff so that everyone’s skills are aligned with the objectives of your company. This means implementing strategic human resource management, vital if you want to increase efficiency and productivity.
Unfortunately, not everyone can afford to hire someone to do human resource management, so you may want to consider getting help in recruiting the right staff.
However, even if your company is very small, adopting an approach that allows you to keep employee motivation high will undoubtedly allow you to increase your earnings and keep the turnover rate low.
What do those who manage human resources do
The HR manager has several tasks, in addition to the ones I have already told you about. In particular, he is dedicated to:
- Human resource planning: includes all the activities ranging from the identification of missing professionals within the company to hire;
- Evaluation of performance and skills of human resources: through which it is possible to understand what needs to be improved and how to incentivize and motivate employees;
- Education and training: this means organizing courses and other activities so that life in the company is always stimulating;
- Management of disputes and organization of communication between staff and employers.
You may choose to outsource these tasks to a personnel management company or get the help of an HR consultant, but having an HR department that knows your company inside out is always the best option.
Human resources and digitization
The Internet has changed the way we shop, today any company that wants to be successful must be present online. For this reason, all entrepreneurs need to start business innovation paths. It is necessary to train employees and hire new ones who have specific digital skills.
In this scenario, an HR manager must take on the role of mediator and acquire the digital skills necessary to understand the new needs of the company he works for. Only in this way will he be able to carry out the personnel selection and management operations that will make the company competitive. This is not an easy job, especially for those who have been used to carrying out their duties in a certain way for years, but, as mentioned, it is necessary
Fortunately, there are several software that can facilitate the work of the HR manager. These are mostly programs for the organization of human resources, therefore for the management of holidays, shifts, and documents. What you might not expect is that more comprehensive software is also available to help you evaluate staff performance and search for potential new employees. Programs of this type are:
- Cezanne HR;
- Alyante HR.
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4 tips on human resource management in digital agencies
A digital agency is a company that operates in the digital marketing sector. Specifically, those who decide to open one will have to hire staff capable of creating websites, defining marketing strategies, generating leads, and, in general, will have to be able to exploit the online environment to bring advantages to the company that requires their services.
In my years of experience as a Digital Coach, I have met several people, often founders of digital companies, and I have had the opportunity to discover the problems they face in managing human resources in the company. In the following paragraphs, I will tell you what I have learned with the hope that my advice will be useful to you.
Dealing with the administration of human resources in a company means worrying about hiring employees with the right skills.
In the case of digital agencies, workers must have excellent IT and web marketing skills. The product of a company that sells online marketing services is the digital capabilities possessed by the people within it, and the quality of these services is directly proportional to the degree of competence of the employees.
However, it is not necessary to hire competent resources in all fields online. There is space on the market for digital agencies of different kinds and each one needs different types of personnel. In particular, digital agencies can be distinguished as companies that offer services that require:
- High-level expertise in just one area, for example, you could set up a company that specializes in SEO optimization;
- Expertise in different areas of digital by hiring different professionals, each specialized in a particular digital sector.
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The term turnover indicates the personnel turnover rate, i.e. the number of people who are hired and those who resign or are fired. These are situations that normally occur in a company, indeed, sometimes it can be the HR offices that organize them to renew personnel, or to meet specific needs.
Turnover can occur in different ways based on the number of people in a company. Excluding large companies, two situations can be observed:
- Small companies with a zero turnover rate;
- Medium-sized companies with high turnover rates.
In the first case, the few people who make up the digital agency tend to form close relationships with each other but find themselves in a stagnant situation without the possibility of growth and expansion. If you find yourself in this situation, you may feel comfortable and stable, but if you want to grow your revenue and become more competitive, you need to take the risk of hiring more staff and providing more services to your clients.
If you are a medium-sized business and have a large number of employees who are hired, resigned, or fire, the causes could be:
- The quality and quantity of customers;
- The absence of career prospects.
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Quality and quantity of customers
In resource management, having a quality clientele is important if you want to avoid turnover. Some types of customers tend to wear out your staff, because they are stressed out, or constantly irritated by business or personal problems that they end up taking out on your workers. In this case, it is necessary to evaluate on a case-by-case basis whether the customer brings enough turnover to the company to justify a slight increase in turnover.
Equally relevant, if you want to avoid your employees ending up feeling pressured and have good reasons to change jobs, is the number of customers. Each person must be assigned an adequate amount of work. You can never achieve satisfactory results if your staff is overloaded.
If you wonder how to recognize and avoid these kinds of problems, the answer is communication and HR. You need to listen to and support your employees and an HR department should be able to do this most effectively.
Another important aspect of the organization of resources in the company concerns the fact that agencies that operate on the web often lack a career prospect or expansion of the agency itself. This is especially bad because to feel motivated, each of us needs a project and a goal to achieve. Again, the situation varies based on the size of the company:
- In digital micro-businesses there are typically one or two people who have no ambition, these generally have useful but extremely limited skills, consequently, they have little potential;
- In medium-sized agencies, we have a good chance of finding people with high potential. Unfortunately, however, these web agencies may not have clear development plans, or these may be completely absent. This ends up discouraging and limiting the potential of even the best employees.
In both cases, what is missing is a development plan by those who follow personnel management within the agency. It should be remembered that those who possess the skills to bring value to the company cannot feel like they are in a stagnant situation. So any development plan can not only concern the company but also individual employees.
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Optimizing Business Costs through Strategic HRM
In addition to focusing on the evolution of human resource management, it is equally important to consider the broader spectrum of business cost optimization. Effective human resource management involves not only adapting to digital transformation and improving employee skills, but also plays a key role in the overall financial health of a digital agency. Strategic HR practices can lead to significant cost savings by improving operational efficiency, reducing turnover, and maximizing employee productivity.
As we delve into the nuances of human resource management in digital agencies, a comprehensive understanding of cost reduction in various aspects of the business, including human resources, is essential for sustainable growth and competitiveness. For a deeper understanding of cost optimization strategies that encompass not only human resources but all aspects of business operations, we invite you to read our detailed guide on how to reduce business costs. This resource provides valuable insights and actionable strategies to help you optimize business processes and reduce costs effectively.
Conclusions and free coaching on human resource management
With this article, I have provided you with a general overview that will allow you to understand how to start organizing human resource management in your digital agency. However, unless you have carried out specific studies in this area, to avoid making mistakes, I suggest you book a free consultation and ask for help from one of the Digital Coach experts.
Finally, I would like to remind you never to underestimate the problems that your employees may have. When people are happy and satisfied with their work, they can be much more productive. Only with an active and motivated staff can you fully achieve the goals you want.
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I direct Digital Coach®, the professional training school, leader in training all professionals who work in the Digital Marketing & Sales field.
As a trainer, I have trained over 35,000 business professionals from over 300 large multinational companies and over 5,000 Italian SMEs.
I devised the “Digital Strategy Framework®” method, thanks to which since 2014 I have been helping companies to define and improve over time a digital strategy that maximizes the generation of turnover and online sales.