What is HR? Key Functions and Responsibilities

Have you ever found yourself pondering, “What is Human Resources (HR)?” and why does it seem to be the backbone of every thriving company? Human Resources is more than just a department; it's the lifeblood of an organisation. What is HR if not the custodian of a company's greatest asset—its people? From recruitment to retirement, HR professionals play a pivotal role in fostering a positive work environment and ensuring compliance with employment laws.  

They are the architects of company culture, the mediators of conflict, and the champions of employee development. As the corporate world evolves, the importance of HR in shaping adaptable and resilient organisations cannot be overstated. Intrigued? Dive deeper into our blog to uncover the What is HR and the key functions and responsibilities that make HR indispensable in the corporate sphere. 

Table of Contents 

1) Human Resources (HR)- an overview 

2) Functions of Human Resources   

   a)Talent acquisition 

   b) Hiring employees 

   c) Handling payroll 

   d) Policy updates 

   e) Employee record-keeping 

   f) Benefit analysis 

  g) Benefit management 

  h) Disciplinary actions 

3) Conclusion 

Human Resources (HR)- an overview 

Human Resources (HR) takes a center stage in organisational success in the sense that the department provides invaluable support in all departments of management. The HR departments are playing a multifaceted role in the fast-moving business environment starting from the hiring and selection process. The HR professionals do have a highly important role in developing a highly efficient and productive workforce through continuous training and development programs. They are, in fact, responsible not only for different compensations, benefits, and performance programs for employees, but also act as advocates of employee interests in terms of organisational wellbeing and culture. 

An HR department is also the guardian of legal compliance; people who work therein are supposed to know the ever-occurring employment laws and regulations meant to ensure protection both for the company and its employees. Here, HR contributes to improved organisational performance and its competitiveness through the satisfaction, engagement, and retention of employees by creating inclusive and supportive workplaces.
 

Functions of Human Resources 

Here are some of the key functions perfumed by the HR explained in brief:
 

Talent acquisition 

Hiring is more of a narrowed-down process to finally pick an applicant, monitored by Human Resource departments. It may involve the screening of the CVs and interviews to further know which among the applicants would be taken in. The HR professionals offer the job to the applicants and later negotiate the terms of service so that both the company and the applicant come to an agreement.  

The company conducts checks on credentials, employment history, and criminal records to validate the details declared by the new recruit. Besides, HR serves an integral role in guiding the on-boarding process by providing the required training, orientation, and support that enable the new staff members to settle down within the new working environment and function efficiently in the required new role. 

Hiring employees 

Human Resources (HR) departments are perceived as the entity that carries out recruitment, involving identification, attraction, and retention of excellent talent to be used in bringing success to the organisation. HR professionals, therefore, diagnose needs within the organisation, screen for the required qualifications and requirements, and lastly refine it to come up with the best candidates.  

They scour the market for talent, using all the recruitment means to get the best performers. In some cases, these headhunting efforts are even direct poaching of skilled professionals from competitors by HR professionals. In this, HR plays a part in recruitment practices that ensure the organisation has a competent and diverse workforce in order to help in supporting growth and the firm's objectives. 

Handling payroll 

HR professionals are expected to provide accurate calculations for employees' salaries, taxes, and deductions that meet all the regulatory and in-house policy requirements. They pay high attention to the payroll process of paying timely and accurately to all the employees to win their trust and satisfaction of the workforce.  

Any difference or dispute related to payroll is detected and reacted to promptly either through investigation or resolution to maintain the morale of the employee and the integrity of the organisation. HR, therefore, can pay attention to flawless payroll management and contribute effectively to the stability of the organisation with increased employee engagement and retention. 

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Policy updates 

The HR function ensures the organisation complies with changes in labour laws, regulations, and even industry standards. Policies and procedures are reviewed regularly in compliance with legal requirements and to ensure that industry best practices are employed. HR has played its role in communicating new policies to employees effectively through different channels, bringing in complete awareness and compliance to the organisation.  

HR should be the part of actively seeking feedback from the stakeholders to ensure areas of improvement or changes in policy are updated by creating increased positivity at work, which is quintessential towards the satisfaction of employees and, by extension, organisational success. HR ensures organisational integrity with an ever-improving sense of organisational culture that is compliant, at all times remaining vigilant, watching over its shoulders, and rushing to respond to changes in regulations. 

Employee record-keeping 

HR maintains a confidential record of information that includes details such as personal information, service record, annual performance appraisal report, and training record of the employees. They guarantee the truth of the information, its availability, and compliance with organisational and information security laws and regulations, allowing an employee to be the owner of privacy and data controller.  

Human Resources will use secure systems and protocols in storage and retrieval of employees' information for effective service delivery, making the necessary decisions, and ensuring adherence to the set regulations. Comprehensive records enable HR to facilitate effective personnel management, support strategic workforce planning, and ensure the organisation's running has transparency and accountability. 

Benefit analysis 

Human Resources further conducts a comprehensive analysis of the benefit programs to determine their effectiveness and competitiveness for attracting and retaining talent. It elaborately collects feedback from employees and compares it with respective industry benchmarks. It also tracks the cost-effectiveness, again resulting in pinpointing those areas where betterment or realignment is required.  

Since HR exists to balance the benefits between employees' needs and organisational objectives, it has to offer at least market-competitive employee benefits in terms of their appeal. HR will have to continuously monitor and maintain the amounts of the offerings to ensure that it remains at levels that would provide for well-satisfied, engaged, and taken care of employees in all areas of well-being to remain successful and competitive in the marketplace. 

Benefit management 

Administration of the employee benefits program is all-inclusive and spans the life cycle of the benefit from enrollment to changes, including termination, managed by Human Resources (HR). HR serves as the main point of contact for employees when they have queries regarding benefits. HR liaises with benefit providers to negotiate contracts and amicably solve problems where needed.  

Additionally, HR effectively communicates the options of the benefits so that employees are informed of the available resources and opportunities. It also educates employees on how they can best utilise the benefits offered, thereby ensuring that the employees derive utmost benefit in terms of well-being and satisfaction. HR oversees Employee Benefit Programs with meticulous attention and active communication, all geared towards ensuring smooth administration that ultimately contributes to a healthy work environment and organisational success. 

Disciplinary actions 

Human Resources deals with disciplinary actions in a fair, consistent, and legally compliant way. They take appropriate action on any alleged misconduct or performance issues, which includes gathering evidence and determining the necessary course of action. HR conducts disciplinary meetings, issues warnings or corrective actions, and provides support and resources to help employees improve. All steps taken during the disciplinary process are documented to ensure transparency and accountability. 

Conclusion 

In conclusion, the essence of HR lies in its ability to harmonise the aspirations of individuals with the organisation's objectives. It’s a dynamic field that continuously adapts to the changing corporate landscape. To fully grasp the multifaceted answer to What is HR, continue exploring our blogs for deeper insights.