The human resource department is responsible for staffing, setting policies, compensation and training. They also help with employment laws and worker protection.
HRM is a vital function for businesses of all sizes and types. Successful HR teams contribute to the profitability and sustainability of a company. They do this by focusing on seven key areas.
Recruitment
Recruitment is one of the core functions that HR departments are responsible for. This process involves finding, attracting, screening, short listing and hiring potential candidates to fill the vacant positions within the organization in a timely and cost efficient manner. This can be done from inside or outside the company. To perform the recruitment function effectively, it is crucial that a detailed job analysis be performed so that the best candidate can be found for each open position. The job analysis will give HR a clear understanding of what is needed for the role and how to screen applicants. This will help to eliminate unqualified candidates and reduce the overall time and effort required for the hiring process.
Another important aspect of recruitment is developing the company’s workforce. This may include identifying training and educational needs and then developing or procuring the necessary materials to fulfill those needs. It can also involve setting up an employee referral program to encourage employees to evangelize the company and its opportunities to their networks.
Finally, it is the responsibility of the HR department to ensure that all new hires have a positive experience during the onboarding and integration process. This is especially critical if the company wants to retain its best employees.
A great way to do this is to provide a competitive compensation package that will attract top talent and keep them happy and satisfied in their role long-term. This includes benefits, like healthcare and paid time off. It is also the responsibility of HR to make sure that the compensation and benefit programs are administered fairly and in compliance with federal, state and local laws.
Performance Management
One of a company’s most valuable assets is its human resources. As such, HR departments are tasked with staffing the business with employees; setting policies relating to work conditions; compensating and training employees; developing strategies for retaining them; and ensuring compliance with employment laws.
In order to meet the demands of the job, many HR departments focus on professional enrichment by offering opportunities for training and removing menial tasks from employee jobs. The department also works to develop a work environment that is satisfying and productive, while maintaining the company’s competitive advantage.
Often, HR managers are responsible for establishing the long-range strategic plan for the department. They use data to assess the company’s current situation, its goals and its strengths and weaknesses. Using this information, they formulate plans that will capitalize on opportunities while minimizing threats.
For example, if the company is losing customers due to a lack of advertising and marketing skills, an HR manager might recommend a program to train sales people. Similarly, if the company has trouble with employee turnover, an HR manager might develop an incentive program to keep employees satisfied.
HR departments are also responsible for providing management with advice and support on the most effective way to manage its employees. They educate managers in giving constructive feedback, catching underperforming employees before they start to slide and fostering an environment of open communication with employees. A good HR department will also assist managers in resolving misunderstandings between employees and supervisors. They can even act as mediator in the event of a workplace conflict. Moreover, they help managers to set performance objectives that are consistent with the overall strategic objectives of the company.
Compensation
HR professionals are responsible for a variety of different tasks, including salary administration and compensation management. This includes determining the type of compensation package offered to employees, such as base pay and benefits, and ensuring that this package is in line with market standards and competitive with similar companies. It is also an important part of attracting and retaining quality employees.
A good compensation program is essential for employee satisfaction, but HR managers must balance the needs of the company with worker needs and requirements. These requirements vary by geography and may include minimum wage laws, family and medical leave policies, or union contracts. HR professionals must also be aware of any federal or state regulations that affect their workforce.
Managing all of these different functions can be difficult, especially as the work is constantly changing. Employees will go on vacation, get sick, or decide to quit their job for a better one. HR managers must find ways to cope with these issues, while still finding ways to improve the productivity of the company and meet customer demands.
Many of the responsibilities of an HR manager involve handling large amounts of paperwork. This can range from a simple department transfer request to confidential employee tax forms. To save time and space, many HR departments now use a human resources information system (HRIS) to manage these documents. This makes it easier for HR to access and retrieve information when necessary, without having to spend valuable time searching through physical files.
The most well-known professional association dedicated to human resources is the Society for Human Resource Management (SHRM). This organization offers training, certification, networking opportunities, and other services to those working in the field. There are also a number of other associations that offer various types of certification to those interested in working in the HR industry.
Training & Development
Providing employees with meaningful training and development opportunities can enhance employee job satisfaction. In fact, according to the Society for Human Resource Management (SHRM), offering career development programs is one of the top reasons why people stay at companies. HR departments often have responsibility for finding and conducting training courses to help employees advance in their careers. This can include technical skills development, leadership training and career development seminars.
A key challenge that most organizations face is finding a way to attract and retain good talent. HR professionals must consciously think about the work environment and culture they offer, as well as make sure to match the right type of person with the job. In addition, it takes a lot of time and effort to train people to change habits, attitudes, beliefs, values and other aspects of their work life. Consequently, the human resources function has the longest time horizon of any corporate activity.
HR managers also must have a keen understanding of the legal environment in which they operate. They must ensure that the company follows all applicable laws, including those related to discrimination, workplace safety and healthcare benefits. In addition, they must keep up with changes in the market and adapt their organization’s strategies accordingly. For example, when the business landscape shifts, HR managers must rethink their hiring practices and policies. Finally, they must constantly assess the quality of their work force and take steps to improve it if necessary. Ultimately, superior human resources are a company’s most fundamental and central competitive advantage, so they should receive top priority for investment.
Employee Relations
In employee relations, HR departments focus on improving the overall employee experience. This can include ensuring that employees are happy in their jobs, providing training and development opportunities, and even fostering a healthy workplace culture. HR professionals also deal with employee issues like workplace accidents, performance reviews, and resolving conflicts between team members.
It’s important for human resource managers to have a clear understanding of how their department contributes to the company’s success. While it may seem easy to get bogged down with administrative tasks, it’s crucial for HR teams to think strategically and develop long-term plans that will help their companies thrive in the future.
This involves using a process called SWOT analysis, which evaluates a company’s strengths, weaknesses, opportunities, and threats. Once this is completed, managers can start developing specific goals to capitalize on strengths, minimize threats, and take advantage of opportunities. This can be as simple as hiring more employees or offering a new benefit package to increase employee retention.
HR departments can also set appropriate policies to reduce the likelihood of conflict. For example, setting clear anti-harassment policies with precise definitions, examples, and consequences can help to prevent unwanted incidents from occurring in the first place. Likewise, creating a defined procedure for handling wage disputes can help to resolve issues before they escalate. While these may seem like small changes, they can have a major impact on the overall morale of your employees. Ultimately, this helps to create a healthy working environment that improves employee productivity and overall business performance. Learn more about how human resources can help your business by downloading this free guide. It’s full of valuable tips that will help you make the best decisions for your organization!
