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HR might be the most confusing department in your whole organizationeveryone knows theyre important, but very few employees know why.
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So what does HR do?
Theres a massive difference between a healthy human resources department that contributes to the growth of the organization and a distant HR that exists somewhere near the basement archives and only pops up once a year for the company holiday party.
Heres an in-depth description of what the HR department does (or what they should be doing) to meet the needs of employees.
In simplest terms, the HR (Human Resources) department is a group who is responsible for managing the employee life cycle (i.e., recruiting, hiring, onboarding, training, and firing employees) and administering employee benefits.
Ask any employee what an HR department is, and youll get an answer that primarily deals with the most uncomfortable aspects of work: HR violations, layoffs, and firing. But the truth is that human resources is there to support employees. Its quite literally a resource for humans.
Here are some of the tasks your HR department is busy completing every day.
HR needs to understand the organizations needs and make sure those needs are met when recruiting for new positions. Its not as simple as just throwing an ad up on Indeed: youll need to analyze the market, consult stakeholders, and manage budgets.
Then, once the role is advertised, more research needs to be done to make sure that the right candidates are being attracted and presented. Recruiting is a massiveand costlyundertaking; the right candidate can revitalize an entire organization, but the wrong candidate can upend operations.
What Is Human Resources (HR)?
Human resources (HR) is the division of a business responsible for finding, recruiting, screening, and training job applicants and administering employee benefit programs. The primary goal of HR is to support employee recruitment, retention, engagement, and overall productivity, which can vary between organizations and positions.
HR is key in helping companies navigate a fast-changing business environment and meet the growing demand for quality employees in the 21st century. It also fosters a positive workplace culture and ensures compliance with labor laws, which can contribute to a company's success in a competitive market.
Understanding Human Resources (HR)
John R. Commons, an American institutional economist, first coined the term human resource in his book "The Distribution of Wealth." However, it wasn't until the 20th century that HR departments began to take shape, formally addressing misunderstandings between employees and employers.
Today, an HR department is a vital part of any business, regardless of its size. Its primary goal is to maximize employee productivity while protecting the company from workforce-related issues.
HR responsibilities include:
These responsibilities are crucial for maintaining a productive and compliant workplace, making HR departments an invaluable part of any company.
Key HR Activities
Following are the key, people-related activities that HR must effectively do to add value to a company:
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HR Management Strategies
Starting in the s, there was a movement toward strategic initiatives within HR departments, driven by research on the impact of employee-related issues on long-term business success.
These strategies are collectively called human resource management (HRM). They provide a comprehensive approach to managing employees and an organizations culture and environment. HRM focuses on recruiting, managing, and guiding the workforce to align with the organization's goals.
HR departments adopting HRM strategies are more active in enhancing the workforce and recommending processes, approaches, and business solutions to management.
Google is one example of an organization that has adopted a more active approach to employee relations through its HR department. The company offers numerous perks, such as employee assistance programs focused on mental health, on-site meals and snacks, fitness centers, massage programs, and ergonomic support, believing happy employees are more productive.
In , National Cash Register Co., known today as NCR Corp., established what is thought to have been the first personnel department (the HR predecessor) to manage wages, workplace safety, and employee concerns.
HR Outsourcing
Since the mid-20th century, some companies have outsourced some of the more traditional administrative, transactional HR functions to free the department to recommend and implement more meaningful, value-adding programs that positively impact the business.
Functions that may be outsourced in this process include:
The use of modern tools, such as recruitment software, can help improve the efficiency of HR departments. This can, in turn, give these departments more leeway to focus on adding ever-greater value.
A human resources department focuses on recruiting and retaining employees within a company. HR is responsible for finding, hiring, and training employees, overseeing employee relations, and managing benefit programs. It's the go-to place for employees to ask questions about their roles, address concerns, and air grievances.
Human resource management (HRM) is a strategic approach to managing company employees, the work culture, and the work environment so that people can function as effectively and productively as possible. Typically, it involves using metrics to measure workforce success.
There are numerous important human resources functions carried out by an HR department. Five well-known types of responsibilities are:
The Bottom Line
A companys human resources (HR) department manages the entire employee lifecyclefrom recruitment and onboarding to training and termination or retirement. HR departments must also stay updated on industry trends and compliance issues to ensure legal adherence.
Increasingly, HR departments focus on human resource management (HRM), using strategic investments and initiatives to improve an organization's workforce. The long-term goal of HRM is to create a more positive, loyal, and productive workforce, ultimately benefiting the company.
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