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What is the one thing a good company can’t do without? While there are many essential roles in every organisation, it is our human resources (HR) that keep the doors open. Besides an orientation and compensation summary when you start in a new role, many people don’t know exactly what working in human resources actually means. Did you know that there are 7 main functions of HR? Human Resource Management (HRM) is the lifeblood of most companies. The primary role of the HR department is to invest in an organisation’s human capital, implementing a range of activities that enables them to deliver the most efficient and effective economic output. Human Resource activities fall under 7 core functions: Recruitment and Selection, Training and Development, Performance Management, Employee Relations, Employment Law and Compliance, Compensation and Benefits and Administration, Payroll & HR Systems. Within each of these functions are a wide variety of activities that HR personnel are responsible for. HR functions are the main responsibilities of the HR department within a business. Falling under each of these core functions are a wide range of activities that are all linked by a concern for employee well-being balanced with a company’s needs. HR departments implement these activities to ensure organisations treat employees in a way that provides mutual benefit for both the employee and the overall business goals. Recruitment and selection is a fundamental function of HR. It involves identifying the need for a role, writing up job descriptions, defining the requirements of the role and the skill set of the right candidate, setting salary budgets, advertising to the right people, screening, interviewing, and selecting the best person for the job. HR Training and development is vital for addressing skill or training deficits among employees and providing them with the necessary tools to strengthen their skill sets, improve their confidence, and perform more effectively. Employers who invest in their workforce in this way see distinct increases in employee satisfaction and morale. They are seen to be valued and supported and more likely to feel motivated in their roles. Training employees also provides benefits to a company. Investing in an employees’ development encourages employee retention and keeps recruitment costs to a minimum. It also makes your company more attractive to potential recruits who seek to improve their skills and provides them with more opportunities. Good relationships lead to increased employee well being. Employee Relations is a term that refers to an organisation’s efforts to create and maintain positive relationships between employees and their employers. ER is integral for organisational performance, loyalty among staff members, and improved engagement. It relates to line managers and their team members, both individual and team relationships. Additionally, it refers to contractual and practical relationships, as well as the personal and emotional dimensions of these relationships. Company benefits are a way to attract, retain, and reward employees. Job satisfaction is directly linked to motivation, efficiency, and employee productivity, so a good set of company benefits can increase morale and motivation in the workplace. HR administration is generally the first role HR professionals take on in their careers and it is essential to understanding the rest of the HR functions. As they say, the devil is in the details; without the meticulous data input, filing and information gathering, none of the other functions would be possible. These are the functions that are more commonly outsourced: These are the HR functions that are most commonly kept in house: Company’s that focus on HR Consultancy are likely to have in-depth knowledge, advanced systems, and tested and proven processes in place to provide those services. They can help streamline your HR functions, resulting in more effective and efficient HRM. It’s important to assess what HR functions you want to keep in house and which would be best to outsource and this will vary based on your time, resources, and expertise. It is common for small and large organisations to outsource key functions such as leadership development, team profiling and general workplace assessments as these are typically specialised skills.
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