Skip to content
Show
Workforce Management Last Updated: June 27, 2022 | Read Time: 7 min
An effective human resources (HR) management department can help provide organizational structure and the ability to meet business needs by managing your business’s most valuable asset – your employees. Several disciplines make up the HR department, and human resources managers working at smaller companies might perform more than one of the five main duties: talent management, compensation and benefits for employees, training and development, compliance, and workplace safety.
In smaller companies the compensation and benefits roles can often be overseen by one or two human resources professionals, but companies with a larger workforce will typically split up the duties. HR functions in compensation include evaluating the pay practices of competitors and establishing the compensation structure. The compensation department is also responsible for creating job descriptions in tandem with department managers, as well as working with talent management on succession planning. On the benefits side, HR practitioners are typically responsible for functions such as negotiating group health coverage rates with insurance carriers or coordinating with the company’s 401(k) administrator. Of course, payroll is also part of the compensation and benefits area of HR, but many companies choose to outsource this function to a bookkeeper or payroll service provider. Those that don’t generally put payroll practitioners in a separate team that works on the tactical process of generating payroll, with the compensation team focusing mainly on planning and strategy. Every company wants to see its employees thrive, which means providing them with all the tools they need to succeed. These tools aren’t necessarily physical such as laptops, job-related software, or tools for a particular trade; they can include new employee orientation, leadership training programs, personal and professional development, and managerial training. Training and development (sometimes called learning and development) is an integral part of the HR team. Depending on the type of employee role played at the company, the training team might be responsible for building out instructional programs that have a direct effect on the success of the business. Today, many colleges and universities offer degrees in training and development; an instructional design degree would also be helpful in this role. Legal and regulatory compliance is a critical component of any HR department. Employment and labor laws are highly complex, and having a team devoted to monitoring this ever-changing landscape is essential to keeping companies out of trouble with federal, state, and local governments’ laws. When a business is out of compliance, it can result in applicants or employees filing claims based on discriminatory hiring and employment practices or hazardous working conditions. The compliance practitioner or team must fully understand employment laws such as the Fair Labor Standards Act (FLSA), the Family Medical Leave Act (FMLA), Title VII of the Civil Rights Act of 1964, the National Labor Relations Act of 1935, and dozens of other rules and regulations. The HR compliance team is also heavily involved—working in tandem with other HR practitioners—in developing all company policy that makes up the employee handbook. Of course, every company wants to provide a safe place to work for its employees, and the Occupational Safety and Health Act of 1970 (OSHA) actually mandates that employers provide a safe working environment for their workers. A large focus area for HR is developing and supporting safety training and maintaining federally mandated logs in the event injuries or fatalities happen at work. In addition, this department often works hand-in-hand with benefits specialists to manage the company’s Workers’ Compensation filings. Ready to take the next step?As you can see, there can be a lot of cross-over among the five main areas of the HR department and it can be tough to cover all of those moving parts. But the success of your business depends on full HR coverage. If it’s too much of a burden to go it alone, Paycor can help. Whatever your HR and benefits challenges are, we can help you solve them with technology that works for your business. Take a tour of our products today and see for yourself how Paycor can help.
Image source: Getty Images HR departments are responsible for a business’s most valuable asset: its people. The Ascent goes through six of the key HR functions.The department of human resources regularly gets a bad rep. It’s often painted as overly bureaucratic, outdated, and out of touch with the realities of day-to-day business. While many employees might believe that the HR department’s responsibilities start and end with setting and enforcing company policy, the core functions of HR departments affect every aspect of the employee lifecycle. While the overall role of HR departments differ from organization to organization, there are several key human resource functions that almost all HR departments perform. Here are the key functions of human resources to help move your company forward:6 main functions of a human resources departmentA well-run human resources department can help your business achieve its goals through effective people management. Here, we go through the six main functions of an HR department, and how each serves a business’s needs. Function 1: Recruiting, hiring, and onboardingThis is arguably the human resource department’s most important function of all. The HR department is responsible for strategizing exactly how to attract, select, and onboard candidates for the organization. Because an organization’s lifeblood is its employees, making sure the right calibre of candidates are hired is crucial for future success. Each employee’s contribution plays a huge role in a business’s growth. Essentially, a bad hire is bad for business. Recruiting and finding new potential candidates is just step one. Once the position has been advertised, it’s also the role of the HR department to steer the candidates through the hiring and onboarding processes. In short, HR is generally responsible for the entire talent acquisition process. Examples of HR’s role in recruiting, hiring, and onboardingThe HR department’s role in recruiting, hiring, and onboarding employees is extensive. Here are a few examples of how HR prepares for these processes.
Function 2: Human resource planningHuman resource planning is the art of preparing a company for its future staffing needs. Similar to workforce planning, it’s the process of not only making sure that the organization will have the right people for the right positions, but also about anticipating future vacancies from retirements, promotions, resignations, and terminations. Human resource planning is an integral part of strategic human resource management, which is the process of aligning HR practices with the company’s overall business strategies. BambooHR software runs a variety of HR reports, such as new hires vs. terminations. Image source: Author Examples of HR’s role in human resource planning:The longer an open role is left unfilled, the more it costs a business. Planning ahead to fill vacancies reduces business costs and gaps in productivity.
Function 3: Benefits and compensationHR departments are also responsible for employee benefits administration and compensation. This includes helping set salary ranges for open positions, building competitive benefits packages to attract quality employees, pay adjustments for promotions and accomplishments, and performance incentives such as bonuses and commissions. Zenefits gives businesses insight into the overall costs of employee benefits. Image source: Author Examples of HR’s role in benefits and compensation managementBenefits and compensation management is one of the main functions of HR, and one of the most tangible for employees.
Function 4: Performance managementWhen it comes to evaluating employee performance, HR’s main role is in making sure employee assessments are carried out in a standardized, fair, and accurate way. While old HR management focused heavily on goal-setting and attached linear outcomes of either "achieved" or "not achieved," the area of performance management in recent years has focused more on relevant employee output results, such as productivity and quality of work. Performance management software has also strengthened the role of HR in performance management, providing functionality for 360-degree feedback loops, access to key HR metrics, functionality for self-assessments, and setting goals based on more tangible and realistic criteria. Examples of HR’s role in performance managementPerformance management is a key for businesses wanting to align employee output with strategic business goals. Here are a few areas where HR departments play a role in this.
Function 5: Training and developmentThe HR department is heavily invested in how a business manages its talent and how training and development programs support both departmental and organizational goals. Investing in employees’ development is crucial in helping them develop the capabilities to support future business growth. Because employees appreciate opportunities to learn new skills, effective training and development has also proven crucial in retaining employees and productivity levels. Examples of HR’s role in training and developmentTraining and development is key to retaining top talent, engaging employees, and enhancing performance. Here are some of the key ways that the HR department helps develop training and development programs.
Function 6: Employee engagementResearch has repeatedly shown that employees who are engaged perform better and are more productive than their disengaged counterparts, and that businesses with highly engaged staff report higher profits than firms with low levels of engagement. Additionally, organizations with high levels of engagement typically enjoy lower turnover rates. HR plays a critical role in determining the methods for enhancing employee engagement levels by adapting suitable processes and programs for their organization. At the heart of this is first understanding and measuring the levels of engagement in the organization to identify areas for improvement. Examples of HR’s role in employee engagementHigh engagement levels are critical in maintaining a healthy and productive workforce. Here are a few actions that the HR department takes to improve employee engagement.
HR departments contribute to a business’s success and growthThough these tasks form the six main functions of the HR department, in reality, there are many other areas of an organization where their involvement is required. In terms of smaller businesses, many opt not to have a dedicated HR department or employ any HR professionals, choosing to outsource HR functions or join a professional employer organization (PEO) instead. However, as HR software becomes more sophisticated than ever, small businesses shouldn’t shy away from systems that can help them manage their small business recruiting, planning, and overall people management without the need for a full HR department. |