Maintenance

This stage in the HR cycle involves the administration of the workforce, and the use of rewards and benefits to retain staff within the firm. The retention of staff is key, as it costs money to replace departing workers, involves the loss of skills acquired and disrupts the cohesion of the team.

Administration: The management of the diverse needs of a workforce requires significant administration. These include the:

• monitoring of employees performance, 

• identification of staffing skill levels, 

• logging of training and development undertaken, 

• payment of wages and superannuation, 

• management of time-off (holidays, parental leave, sabbaticals, part-time workers)

• distribution of rewards and benefits to high performing staff

Rewards and benefits: In order to retain the best staff, HRM must determine ways to ensure they are happy working within the firm. These can be either monetary or non-monetary.

• Monetary: the payment of higher salaries than competitors; the awarding of bonuses at the end of the year or completion of contract; the provision of company car and travel expenses; other gifts of value - see Income Statement.

• Non-monetary: the satisfaction derived from performing the role; excellent working conditions; flexible working arrangements; recognitions and awards. Related to Business Culture and Ethics.