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Human resources! Sounds familiar? Are they some sort of an elite class? Or, are they entitled to some sort of mediators for conflicts between employees and management? Some would definitely agree that they are a bit of everything. Well, read on to understand the functions of HR management that everyone and every business need to know.
Introduction
All employees have interacted with an “HR” or a representative from the department. A recurring confusion or ambiguity lies in the role and responsibilities of the HR. The most common understanding is that they are the mediators between employees and the management and that their whole job revolves around this particular axis. On top of all this, outsourcing HR companies are present as well, raising the question as to whether companies even need such a dedicated team.
If you have ever thought that HR only consists of interviews and trainings, think again. This blog is specifically tailored to address the functions of HR management that everyone should be aware of.
Looking for a HR Management Course? Click here to enrol for Entri’s HR Management Course!
Core Functions of HR Management
The core functions of HR management are as follows:
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Recruit, train, and retain
Although the words look simple, the task is herculean, as a whole lot of processes go on in the back end for these three words. Talent acquisition is one of the majorly known functions, or aspects, of HR management. This requires them to find the perfect “match” who aligns with the organisation’s values and principles. As a result, they also have to make sure that the workforce requirements are met consistently.
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Recruitment
The recruitment process is the most fundamental and relevant step in the hiring process. It requires the HR to develop a job description that would attract potential candidates. Along with a job description, a competitive salary also needs to be set, which would also determine the number of vacancies required. HR executives would screen the potential candidates through resumes and a couple of interviews. When all the aspects are aligned, the hiring process is complete.
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Training
Once the hiring is done with clear communication, the training process starts with an emphasis on the understanding of the company’s values and rules. The POSH policy is one of the most common policies that are given as part of the training across organisations. The HR department has to make sure that there are sufficient trainers to handle the training according to the number of new recruits.
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Retainment
Although employee retention is more of a latter concern of the particular team/department, HR also has a major role in the aspect. According to Matt Tenney, these are the main factors that drive employees to stay or leave at a company [1]:
- Leadership
- Feedback
- Growth
- Compensation
- Work/Life Balance
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Engagement
We’ve all heard that ‘communication is the key’ to any relationship. Well, this is also applicable to the workplace as well. The production of a company or organisation thrives when there is clear communication between the employees and the leadership. Mind you, this isn’t just a one-way communication. The employees’ concerns and ideas are also to be heard. This is the only way to build a vibrant and inclusive company culture that is for everyone.
Here are some commonly practiced HR traditions that are effective to an extent:
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- Recognition of individual and group successes
- Reflecting on mistakes and failures
- Asking for feedback and listening to concerns
- Company-wide outings
- Communication of new policies, decisions, and goals in time
- Resolving conflicts
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Compensation and Benefits
Putting a price on talent is never an easy task, and that’s why HR executives and managers are trained extensively to make some really hard decisions. When deciding on a salary–which can be hourly or yearly– a lot many components come into the spotlight. Qualification, experience, previous compensations, industry standard hikes, etc. At the same time, what would attract candidates more would be providing benefits like the list below, which would be like a cherry on top of the cake for the package of the employees.
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- Health insurance
- Wellness concession
- Educational opportunities
- Parental leaves
- Paid leaves (annual, sick, casual, festive)
- Yearly bonuses
- Hikes
- Referral bonuses
- Relocation assistance
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Development
The HR department should be able to offer opportunities for employees to learn and develop skills, which would help them to grow as resourceful people. This would help the organisation to utilise the talent of the employee by even helping them to transition to a different role or promotions. When employees feel like their organisation is investing in them, they would be happy to invest themselves as well.
They are also responsible for providing training on diversity and inclusivity, market trends, reporting, etc.
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Legal Compliance and Audits
Labour laws are pretty complex, especially in a country like India. The HR department should be up-to-date in all these aspects of the laws, as they can vary according to state and time. An effective and responsible HR department would be keen on all of these regulations and avoid any sort of lawsuits that would put them in a jeopardy.
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Risk Management
Another one of the core functions of HR management is to identify, analyse, and resolve production risks that range from short-term to long-term. Although there are separate divisions that handle risk management, the HR department can be a part as well. Here are some examples of how the HR department can mitigate these risks:
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- Training managers and collecting anonymous feedback from their reports.
- Tracking, updating, and preserving employee records.
- Working with the IT department to ensure that data is secure.
- Investigating various accusations.
- Promoting diversity.
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Performance Management
Performance management is a metric through which the productivity and engagement of the employee can be tracked and assessed. Good performance management includes strong leadership, clear goal-setting, and open feedback. Although performance reviews of employees are directly done by managers, 69% of HR professionals believe that performance management will be more like natural conversations rather than an exclusive meeting [2]. HR department utilises the performance management metric as a means to bridge the gap between workforce they have today, and the one you want to have tomorrow by emphasising on the development of the employees.
Conclusion
Based on the functions listed above, it is evident that HR is a multifaceted entity that enables companies and organisations to utilise their workforce. Carrying out all of these functions is no joke and requires a certain knack. As with any other job, HR requires education, but the knowledge gained from experience is what makes each individual in an HR department unique. As a concluding note, it is safe to say that the roles and responsibilities of HR management are not as trivial as what we discussed in the beginning of this blog.
Looking for a HR Management Course? Click here to enrol for Entri’s HR Management Course!
References
- The 5 Main Drivers of Employee Retention – https://peoplethriver.com/what-are-the-5-main-drivers-of-employee-retention/
- The Future of Performance Management – https://www.hr.com/en/magazines/all_articles/the-future-of-performance-management-2022-23_l5qfh3sh.html
Frequently Asked Questions
What are the main functions of HR Management?
The main functions of HR in an organization include HR planning, managing the recruitment and selection process, and overseeing employee relations, compensation, benefits, performance management, and learning and development programs. Additionally, HR plays a critical role in ensuring compliance with labor laws and regulations, workplace health & safety, and implementing strategies to maximize employee engagement and productivity.
What HR functions can be outsourced?
Organizations often outsource HR functions such as payroll processing, benefits administration, recruitment and staffing, and legal compliance. This allows them to focus on core business activities while leveraging the expertise of specialized external providers to manage complex or time-consuming HR tasks efficiently.
Is the HR department important in a company?
An HR department is tasked with maximizing employee productivity and protecting the company from any issues that may arise within the workforce. HR responsibilities include compensation and benefits, recruitment, firing, and keeping up to date with any laws that may affect the company and its employees.
Does HR have the final say when hiring a candidate?
In many organizations, HR is the frontline in the hiring process, advancing only the most vetted candidates to the interview stage. However, the final say in who gets the job ultimately resides with the hiring manager, who is typically outside of the HR department.