What is the most important thing that a company cannot do without? Although there are many roles within an organization, our human resource (HR) keeps the doors open. Unfortunately, many people are not aware of human resources’ jobs. Did you know there are 7 main functions for HR?
Human Resource Management (HRM) is essential for most businesses. The HR department’s primary function is to invest in the organization’s human resources and implement various activities that enable them to produce the best economic output.
The core functions of Human Resources include Recruitment and Selection, Training and Development, and Performance Management. Employee Relations, Employment Law and Compliance. Compensation and Benefits and Administration. Payroll & HR Systems. There are many activities that HR personnel can be responsible for within each of these functions.
What are the HR Functions?
The HR function is the core responsibility of an HR department. These core functions cover a broad range of activities, all linked to a concern for employees’ well-being and a consideration of the company’s needs. HR departments implement these activities to ensure that organizations treat employees mutually beneficial for the employee and the business’s overall goals.
Here are the 7 HR Functions of Human Resources?
1. Selection and Recruitment
Selection is a core function of human resources. This involves identifying a job need, creating job descriptions, defining the skills required for the role, setting salaries budgets, advertising to qualified people, screening and interviewing, and finally selecting the best candidate for the job.
Although it may seem simple, this function does more than find people to fill the roles. By clearly defining the job requirements and defining the employee profile, you can greatly impact employee retention and make your workforce happier.
Onboarding, also known as organizational socialization, is a common part of the recruitment process. It is typically facilitated by HR personnel and overseen by them. As a result, new employees learn the skills, knowledge, and behaviours they need to be effective team members.
2. Training and development
Human Resource Development is essential for employees who have skills or training gaps. It provides them with the tools they need to improve their performance, increase their confidence and strengthen their skills. This investment in employees results in a significant increase in employee satisfaction, morale, and productivity. They feel valued and supported and are more likely to be motivated in their jobs.
Investments in employee development increase employee retention and keep recruitment costs down. This makes your company more appealing to potential employees looking to enhance their skills and offers them more opportunities.
For industry changes and innovation, training is important. Keeping employees up-to-date with the latest developments helps to keep the organization a leader in its field.
3. Performance Management
Human Resources usually facilitates performance management with the support of line managers. It helps to evaluate the work of employees, their attitude, and effectiveness and monitor progress.
Performance reviews and quarterly or annual appraisals are essential components of a good performance management system. These allow employees to communicate with their line managers one-on-one and establish clear goals for themselves and their teams that align with their strategic goals.
A performance management cycle can be a continuous process that includes many activities. This involves planning, setting SMART goals, and a Personal Development Plan to achieve them. Then reviewing and assessing their progress and helping people develop the knowledge, skills, and abilities necessary to reach their goals.
4. Employee Relations
Employee Relations (ER) has two main functions. First, HR assists in preventing and resolving disputes between employees and managers. They also help create and enforce fair and consistent policies for all employees.
Employee Relations refers to an organization’s efforts to build and maintain positive relationships with employees and their employers. ER is essential for improved engagement, loyalty, and organizational performance. This includes line managers and their staff members. It also refers to practical and contractual relationships and the personal and emotional aspects of these relationships.
ER falls under the wing of HR personnel. They act as a liaison between managers and employees. In addition, they create and implement policies to address employee issues, such as fair compensation and reasonable working hours, work-life balance, and useful benefits. Employee relations also include whistle-blowing and disciplinary processes.
5. Employment Law and Compliance
Every HR professional should be up-to-date with employment law to ensure that the company’s policies, procedures, and benefits comply with current laws. The legal framework in which an organization must operate is called employment law. In addition, many laws and regulations govern human resources, including recruitment, performance management, and employee relations.
Although this is one of HR’s most important and complex functions, strict adherence to applicable employment laws can help avoid legal complications. In addition, both employers and employees can make sure that all parties are treated fairly. This will help to eliminate discrimination and promote equality at work.
6. Compensation and benefits
Most employees love benefits and compensation. The basic salary is agreed upon between each employee and the company. In addition, employee benefits can include pay increases linked to appraisals and private health insurance, longevity incentives, corporate discounts, and paid holidays.
Employee benefits can be used to retain, motivate, and reward employees. A good selection of benefits can help increase employee motivation and job satisfaction.
7. Administration, Payroll, and HR Systems
The administrative tasks under the HR department include maintaining employee data, developing systems, paying salaries, prorating work hours and holidays, and calculating taxes. Larger organizations might have a payroll department that works with the HR department.
The most important role in HR management is the one that HR professionals start to take on. It is also the most basic. The devil is in details. Without meticulous data input, filing, and information gathering, all other functions would not be possible.
Human Resource is a huge part of any business and a software solution makes HR managers’ life much easier. HRMS Software in India is increasing be it for payroll management, attendance management or even leave management. Ultimate Business System (UBS) offers one of the best HRMS software that comes with highly advanced and customizable tools.
