The Best Buy Firm Managing Its Human Resource

Topic: Business Analysis
Words: 1586 Pages: 6

Overview of the Company

Best Buy has great connections in human resources that support and organize the human resource’s device.

The workforce planning and HR metrics team they have created acts as a committee that reviews and verifies the current workforce situation quarterly. Their tasks include discussing new ideas, research findings, current offers, and planned strategies for integrating innovative approaches to improve workplace organization.

For the team, the first step in the meeting is a presentation by one of the team members to uncover opportunities for new system upgrades.

Best Buy organizes the team to maximize potential HR management opportunities for the next quarte.

Workforce Planning Group

The Workforce Planning Team is a team of individuals dedicated to transforming the work environment from individualism to increased efficiency. This transition allows the optimization of available resources and extends the boundaries of the company’s production practices (Balakrishnan et al., 2018). The effective planning process includes strategies as priority tools to identify workforce risks and manage talent. Workforce planning consists of the search for resources and the competent development of metrics that will be a priority for the next period. The shift to operational thinking and achieving it with high efficiency becomes the focus of the workforce planning team’s schedule.

HR Metrics

HR metrics help organizations track critical areas in their HR data. These metrics help track and measure employee performance, initiative, proactivity, and engagement. These metrics are usually human resources operations, process optimization, and organizational effectiveness (Karmanska, 2020). They address the issue of strategic planning to assess appropriate work practices and expected trends. Measuring, monitoring, and evaluating HR metrics allow the company to move forward and directly affect the development of the company. It is necessary for the resource planning team because, without them, no solid business strategy can be created that will shape the human resource actions of the organization.

The Effectiveness of Best Buy’s Resource Management Policy

Best Buy’s professionals are focused on conducting workforce planning research. The company is convinced that this is a crucial segment in organizing resources and optimizing them. The capabilities of the HR department are probably ample, as Best Buy researches to identify potential trends. It allows the company to (Balakrishnan et al., 2018):

  • predict team capabilities
  • manage employee turnover
  • develop a nucleus of talent and its distribution
  • build a network of communications that organizes teams
  • look for niche talent Best Buy’s tactics are an optimization of talent management that has a positive impact on both the bottom line and the business.

The Effectiveness of Best Buy’s Resource Management Policy

The effectiveness of Best Buy’s policies is determined by a team of highly qualified people.

  • According to human capital theory, sharing people’s experiences becomes paramount in building the intellectual resources for the organization (Willis, Cave and Kunc, 2018). Best Buy has succeeded in doing this because it has a platform to talk about results and bring regional expertise (Jayanthi, 2018). It has become company’s strengths and makes recruiting and hiring easy and convenient.
  • A designated director on the team is dedicated to evaluating HR metrics. This position allows Best Buy to make collecting and to use metrics efficient and quick.

The Benefits of Best Buy’s Resource Management Policy

Best Buy’s policy focuses on addressing the behavioral culture of people in the organization. The existing problem-solving network is a potential source of ideas – the database for strategic planning. The interconnectedness of the planning teams and the simultaneous measurement of HR metrics allow a company to have an advantage in the form of (Jayanthi, 2018):

  • compliance with the laws of the internal market and external
  • needs assessment based on quantitative and qualitative indicators
  • elaboration of programs of development, training, and promotion
  • analysis of the suitability of the interviewed candidates for the current position ▪promotion within the UK market and countries.

Benefits of the Workforce Planning Group for Organizations

The Workforce Planning Group is about unlocking the potential of an organization and gradually expanding its operations through the use of highly qualified individuals (Balakrishnan et al., 2018). The benefits to Best Buy as a trading company have been previously approved, but the general advantages of using such a group should be outlined (Willis, Cave and Kunc, 2018):

  • modelling the candidate’s path in the current market (equity theory)
  • shaping motivation through performance measurement (motivation and reinforcement theory)
  • setting goals through actual performance and research (theory of expectations) (Karmanska, 2020)
  • identifying potential barriers to recruitment (transaction cost theory)
  • prioritizing workforce investments.

Benefits of HR Metrics for Organizations

The workforce planning group goes along with HR metrics. It allows for the creation of an environment for business development. HR metrics promote employee engagement and retention by evaluating criteria such as loyalty, overall turnover rate and rate, and retention rate (Karmanska, 2020). The effect of the implementation of HR metrics allows one to achieve the following positive indicators:

  • covering costs and expenses directly from HR metrics
  • correction of weaknesses based on measurable criteria
  • the revealing of hidden patterns between metrics
  • forming of adequate expectations on the part of management
  • development of target values of personnel costs and personnel KPIs.

Best Buy’s Approach to Reducing Employee Turnover

Reducing turnover is one for a company that wants to maintain its competitive edge in the marketplace. It involves identifying a problem and then moving to solve it based on market conditions and the environment. For Best Buy, the approach to reducing turnover is to have an existing problem-solving network that determines recruitment and retention environments. The company is aware of the costs and an additional expense it may incur due to this network but finds it less costly than the effects of high turnover. The team’s research identifies avenues for current employees and increases interest in the company’s openings.

Best Buy’s Experience

Best Buy had a successful experience with the problem-solving network. The network identified a current problem in hiring bakers, with whom there was a problem of high care and low hiring. The company used steps:

  • defining the problem
  • analyzing similar cases in other supermarkets using HR metrics
  • summarizing the results
  • creating competitive pay rates.

The company increased employee retention rates and the number of applications for a position. This increase results from the effective use of HR metrics. It is effective because Best Buy understands the value of sharing experiences with other suppliers and represents its position relative to them.

Best Buy’s Experience

Best Buy’s experience demonstrated effectiveness as HR professionals paid attention to the following components and did the following:

  • assessing market indicators.
  • determining the relevance of the required specialty in general.
  • comparing past and present HR experiences.
  • conducting a rate analysis according to regional pay metrics.
  • analyzing the source of the problem area.

These actions allowed the company to validate that their HR metrics department represented how startup planning worked. The effectiveness of the decision was documented, and in the future, using this experience will allow the company to be more agile and dynamic and avoid new increased costs (Jayanthi, 2018).

Areas of Best Buy Success

The Feedback and Communication

The company represents exactly how communications work and why they are core to the HR segment. Communication systems are organized correctly and have no significant stoppages.

Existence of a Strategic Solution-Finding Group

The group performs specific actions, accumulates experience, and transforms it into the necessary ways. The search for solutions has the potential to open new positions.

HR Metrics Analytical Unit

The analytics component is powerfully advanced because it pays attention to the relevance of HR specifics and considers regional experience as a source of solution paths. The analytics capabilities lead the way and work effectively.

Potential Improvement Opportunities

The norm for a mature company’s employee turnover is generally between 3- 7% (Market Research, 2021). The retail chain needs to determine what causes employee turnover. Based on this, Best Buy was recommended to improve the following:

  • develop an adaptation system for narrow specialists (for example, administrators and logisticians)
  • reconsider the organization of work (for example, for chefs, the kitchen environment is critical)
  • reconsider the distribution of responsibilities and find a balance (for example, for the warehouse, the problem of burnout is relevant – should be balanced) (Diaz-Carrion, López-Fernández and Romero-Fernandez, 2020)
  • career opportunities and horizontal movement (for analytics or marketing).

Evaluation Initiatives

  • Best Buy is interested in attracting personnel with high supply and low demand, and initiatives with an onboarding system will find a positive response.
  • The HR department may consider revising the work organization to be outside of its responsibilities and direct them to other departments.
  • Finding balance and assigning responsibilities is a must-have segment of the HR department. Best Buy may see this as having the potential to reduce turnover and increase demand within its regional footprint.
  • Horizontal movement and career development fall under the jurisdiction of the HR. Best Buy can execute them through managers already in the workplace.

European Marketplace

The European market operates on strategies for better people management, measurably defining employee performance, and preserving human capital (Market Research, 2021). For Best Buy, adhering to these same narratives in its operations and strengthening HR metrics will be a successful tactic. The company will likely advance its management and employee measurement strategies. Market demand for unique job openings is expected to increase. Despite the technology growth, manufacturing occupations will retain their place in the European market (Diaz-Carrion, López-Fernández and Romero-Fernandez, 2020). If Best Buy can find ways to keep employees, it will be in line with current HR market trends.

Reference List

Balakrishnan, A. et al. (2018) ‘SMART program goals and workforce planning’, in Science, mathematics & research for transformation (SMART) outcome evaluation report. Virginia: Institute for Defense Analyses, pp. 73-78.

Diaz-Carrion, R., López-Fernández, M. and Romero-Fernandez, P. M. (2020) ‘Constructing an index for comparing human resources management sustainability in Europe’, Human Resource Management Journal, 31(1), pp. 120-142. doi: 10.1111/1748-8583.12286.

Jayanthi, R. (2018) ‘A study on effectiveness of HR metrics’, International Journal of Science and Research, 9(2), pp. 1630-1635. doi: 10.21275/SR20225131039

Karmanska, A. (2020) ‘The benefits of HR analytics’, Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu, 64(8), pp. 30-39. doi: 10.15611/pn.2020.8.03.

Market Research (2021) Europe human resource management market by component (software and services), by deployment type (on-premise and hosted), by enterprise size (large enterprises and small & medium enterprises), by end user (IT & telecom, BFSI, retail, healthcare, manufacturing, government & public sector and others), by country, growth potential, COVID-19 impact analysis report and forecast, 2021–2027. New York: Knowledge Based Value (KBV) Research.

Willis, G., Cave, S. and Kunc, M. (2018) ‘Strategic workforce planning in healthcare: A multi-methodology approach’, European Journal of Operational Research, 267(1), pp. 250-263. doi: 10.1016/j.ejor.2017.11.008

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