Human resource professionals are responsible for managing the employee lifecycle within an organization.
As a small-and-midsize-business (SMBs) striving to grow in a competitive market, hiring and retaining the right people is extremely important. Managing an increasing influx of employees necessitates hiring a human resource (HR) professional who can handle all HR functions.
If you have a large employee headcount, you can consider creating an HR team to maximize employees’ efficiency and encourage a positive work environment. These HR professionals will handle employee relations, helping your business run smoothly.
With this guide, you can learn about the role and benefits of HR and know which businesses need HR professionals.
What is human resources?
Human Resources is a department within a company that manages all human resource-related activities. The department utilizes human capital management (HCM) to focus on meeting the needs of an organization’s employees. The best HCM practices help organizations invest in employees' life-cycle and enhance their value in the company.
As companies grow, the HR department ensures that the right people and job roles are in place to support the company's strategic objectives and growth targets.
What functions are carried out by human resource professionals?
HR professionals oversee several employment-related functions in an organization.
Recruiting and vetting: An organization’s HR department is responsible for attracting, hiring, and onboarding new employees. To perform these functions efficiently, professionals must post job vacancies, screen applications, conduct interviews, and hire suitable candidates.
Training and development: HR teams often organize training programs for new hires and ongoing professional development opportunities for the existing staff. These training programs provide employees with the necessary skills to perform their jobs effectively and prepare them for future roles within the company.
Performance management: HR professionals evaluate employee performance through regular feedback sessions and appraisals. This allows businesses to recognize high and low performers, identify areas for improvement, and ensure everyone is working towards the business’s objectives.
Employee relations: HR professionals manage employees’ internal conflicts and handle their complaints to foster a positive work environment. They ensure smooth communication between employees and stakeholders.
Compensation and benefits: Employee pay structure and benefits packages are managed by an HR department. This includes managing payroll, administering benefits, and ensuring the company's compensation practices align with industry standards and legal requirements.
Compliance: HR teams ensure the company complies with all relevant labor laws, including equal opportunity employment, workplace safety regulations, overtime, and minimum wage rules.
Healthy and safe workplace: HR teams are responsible for ensuring the workplace remains safe and healthy for all employees. This includes communicating and implementing safety protocols, managing occupational health programs, and promoting employee well-being initiatives.
What are the benefits of human resources?
Utilizing the functions of a human resources department establishes an organization’s commitment to employees. It benefits the organization by enhancing employees’ job satisfaction and retention rates. Here are some ways a human resources team positively affects employee relations.
Increase employee engagement
HR teams foster a positive work environment that encourages collaboration, respect, and inclusivity in the workplace. They implement policies promoting diversity and equality to create an environment where employees feel valued and accepted. A positive work culture not only increases job satisfaction but also boosts employee engagement as employees feel more connected to the organization.
Enhance employee productivity
To ensure employees are productive in their respective positions HR department hosts regular performance reviews. They set clear expectations, provide regular feedback, and recognize and reward high performers. This structured approach helps employees understand what is expected of them, motivates them to meet and exceed these expectations, and ultimately leads to increased productivity.
Cultivate transparent culture
The HR department helps facilitate open and transparent communication within the organization. They serve as a bridge between the management and employees to reinforce organizational values and goals. Clear communication from the HR department between the employees and management fosters trust and collaboration.
What kind of business should consider creating a human resources department?
While every type of company, large or small, can benefit from an internal HR department, they are usually established once a company grows to a specific size. An increasing number of employees demands more attention to employee engagement activities.
Small companies typically handle HR duties independently without establishing a specific role. This might imply that the payroll, legal compliance, and other HR-related responsibilities fall on the owner or an employee managing multiple roles.
Medium and large-sized businesses typically require a full-fledged HR department to handle all the duties due to the larger headcount. Companies can hire third-party service providers, including recruiting and staffing agencies, to cater to specific HR needs.
Future of the HR professionals
The future of the HR professionals and department may require a mix of strategic partnerships and digital transformation. As businesses navigate an increasingly complex global marketplace, HR departments are expected to be more strategic in driving the business toward success. This includes shaping organizational culture, driving talent acquisition and development strategies, and influencing business decisions with data-driven insights.
The rapid advancement of technology is reshaping the HR landscape. Artificial intelligence, machine learning, and automation make HR functions more efficient and effective. With human resource software, businesses can speed up all employment-related operations, from recruitment to employee engagement to learning and development.
Check out these Capterra articles to get more insight into human resources.