There’s been a lot of reaction to the concept of ‘best practice’ in HR over the last few years – the idea being rejected primarily because no-one can identify what these best practices are, nor is there much (if any) evidence that they work. As a result, the alternative ‘best fit’ model has gained in popularity.
Superficially, best fit has much to commend it. Our HR practices are adapted to the size, sector and most importantly the strategy of our organisation. The approach that might be taken in a large corporate services business is not the same as an SME in a manufacturing sector. But we need to take care.
One of the most well-known best-fit theories (Schuler and Jackson 1987) suggests that when a business is cost-sensitive, HR’s approach should be to control and reduce costs. This means not just keeping wages at the lowest level to attract qualified staff, but also using very tightly defined job roles (so there is no scope for ambiguity or employee discretion), using ‘precarious’ labour (what we now tend to refer to as the gig economy), little or no training and development, and short-term performance goals. Ryanair is often cited as the ‘classic’ example of this approach in the UK.
The dangers of this approach should be obvious – and if they aren’t then yesterday’s article in the Financial Times, which exposed the working practices in the garment industry in Leicester should be top of your reading list. Taken to its extreme, it leads to unsafe working conditions, below minimum wage levels and exploitation on a large scale.
“But what can we do?” I can hear many HR professionals saying. After all these businesses won’t have HR. But our ‘just legal but arguably unethical’ HR practices do lead to other companies taking the next step across that line. And with little current enforcement of regulations it’s all too easy to get away with ignoring basic employment law.
It is, as Canadian HR writer Jane Watson describes it, a “Wicked Problem” – and demands the same approach she suggests to tackling it. HR can’t solve the issue on its own, but neither can we pretend that we are not partly responsible for this state of affairs.