Staff resources form part of the company’s competitive advantage in a changing environment. It is easy for competitors to reproduce another company’s product or functional features. However, it is significantly more difficult to imitate the human resource management schemes, staff know-how and organizational culture. The staff know-how is one of the company’s most important strategic resources, which can be developed by active human resource management.
Human resource management is a significant part of strategic business management. A well-organized employee management supports a business in achieving both its long and short term goals as well as in preparing for the future. In order to improve the organization’s results, human resource management requires solid business orientation and ability to work with different organizational functions in cooperation with the organization.
Staff engagement, work culture, learning and development are challenges globally acknowledged by the human resource leaders. In Finland, the focus in the field of HR lies more in the HR technology, simplifying work and HR analytics. This is partly explained by Finland’s weak economic situation, as HR processes are being intensified by various new technologies. Due to the challenging economy, companies are struggling with the need for staff reductions and finding the right talents. Simultaneously, unusual employment relations and the usage of subcontractors have increased. Therefore, new methods, leadership models and administrative tools are needed in the Finnish human resource management to respond to the current, challenging human resource environment.