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7 Fundamental HR Functions You Must Know In 2023

Moustafa Ahmed September 24, 2022 3 min
A group interview that illustrates a part of hr functions during recruiting

Relation Between Employer & Employee Maketh The Business


Any business, to prove its effectiveness, needs a strategy for human resources management to guide individuals and teams in an optimized way, that encourages them to give more effort and achieve better performance. What are particularly the HR functions that produce a cohesive company that seeks its goals?


What Is HR Function?

Human resources management is a sector attentive to the employee’s career. It accompanies him during his journey; starting from screening as a potential candidate, and moving along with him through the recruitment process. Next,  providing him with the proper onboarding that could include training or guide sessions, and finally administering him across his presence in his current occupation.


A department within the company may perform HRM functions internally if it is established and well-resourced enough, or externally if all services are outsourced through a separate HR consulting firm.


What Are the 7 Functions of HR?

Here, we discuss 7 major HR functions that build a professional outstanding enterprise:


1-Recruitment and selection

Recruitment is the process of selecting suitable candidates from the targeted pool to fit a vacancy available in an organisation.

Human resources specialists manage the hiring process with the help of the department that includes the vacancy, which provides the data related to needed technical qualifications, competencies, and experience. Here, all the dimensions of the need are established.


Based on the data gathered from the actual case, HR specialists will construct a tailored job description. This JD will be the magnet that makes suitable candidates apply by posting it as a job ad on different platforms.


Certainly, not all applicants exactly meet the specifications, this will lead to an initial resume screening to look for the keywords available in each one.


In parallel to capturing active candidates, the HR specialist will also look for passive candidates on professional online platforms that could be general like LinkedIn or could be specialised for the profession he’s looking for.

The Hr specialist will start screening those profiles to find the best-fit candidates and check out if they’re interested or not.


All initially screened candidates will enter the recruiting pipeline through either a phone screening or an online first interview.


This will be ended with a second interview that could include a technical test or be followed by a technical assignment.


A list that includes the approved candidates is prepared to be delivered to the client/department, to select the best candidate from its point of view and according to the HR specialist’s recommendations. After choosing the best individual, the HR specialist will be responsible for making a final communication with him and sending him the job offer before onboarding.


If an employee decides to leave, he or she should go through another interview called an exit interview where they can discuss the reasons for the departure, the advantages and disadvantages of the job, and suggestions for improvement.


2-Performance Management

It’s another crucial HR function performed that mainly consists of 3 parts: Defining the goals, evaluating the current status, and putting a development plan for performance.


Defining the goals here is related to every employee, and these goals should perfectly align with the organizational goals.


These SMART goals could be linked to jobs, projects, and behaviour. Some goals could be connected to learning and skill development.


Checking the current situation depends on pure analysis and taking into account every activity, achievement, and attitude, it mainly depends on the goals as essential references.


A 360 feedback is a multisource evaluation that could be a perfect method to recognise the opinions of the employee’s manager, coworkers, and subordinates, this covers work quality, behaviour, and degree of cooperation.


Also, the HR specialist will revise the attendance sheets, dependability, quantity of work, and relationships with people, connect every fact with the right indication and finally put an actual rating. This transfers the process from assessment to development.


A performance development plan is a detailed action plan that needs to cover all the goals mentioned, weak points that need enhancement, and strong points that need continuous nurturing.


3-Career counselling

Previous functions cared more about the enterprises, they followed the employee’s journey and activities in the favour of the enterprise, seeking its growth and development, making the individual’s growth part of any achievement.


Career counselling functions care about the employee, making him the core of the function’s attention.


Career counselling is not bounded by a certain age, the Hr specialist could help a high school student with the university or scholarship he should enrol in that meets his preferences and skills, he could also help a department manager to find his way to a C-suite level.


The career counselling sessions and meetings help individuals in recognising more about themselves, their strengths and weaknesses, this makes taking decisions more clear and based on solid ground.


This HR function not only guides the individuals toward the right paths but also develops their appearances on professional platforms to meet with recruiter’s needs. Linkedin, and any other specialized platforms that could attract the right talent acquisition specialists.


Supporting these profiles and the CV with tailored keywords and updated data that moves along with the needs of the individual.


Interview Mocking is also a powerful technique where practice makes perfect. Putting the individual surrounded by all elements of an actual interview makes this technique a real interview that focuses on the individual’s pain points, for instance,  they’re unemployed for a period of time. The interview will put the individual under pressure through stressful actual situations.


4-Employee Relations

Managing the relationships between the employee and the employer is one of the primary tasks that one or more HR specialists handle. By creating a better open channel for transparent communication, this raises employee satisfaction. The specialist must assess the submitted complaints, look into the causes, and analyze them.


Creating employee reward or recognition programs that encourage employees to work harder and give dedicated employees a satisfying thumbs-up is one of the tasks that are considered to be part of employee relations.


5-Employment Law Compliance

When a workplace violates local employment laws, it creates an unfavourable work environment, a lot of internal complaints to the HR department, and official complaints to the authorities, which slows down production. So, the HR department has to check regularly the applied laws in the workplace if it complies with the labour law or not.


6-Compensation and Benefits

After delivering the job offer or employee contract, an HR specialist is in charge of managing the various forms of compensation and benefits mentioned. Salary, bonuses, and commissions are examples of direct compensation

whereas stock shares or equity options are indirect compensation that offers employees a profit-making investment vehicle.


On the other hand, benefits might include health insurance, life insurance, retirement plans, disability insurance, legal insurance, social insurance, etc.


7-Administration, Payroll, and HR Systems

The HR department must keep track of the employee’s working hours, sick days, and other deductions to convert them into financial dues that the employer must pay to the employee. Additionally, the department oversees the database of employees and keeps track of expats’ expiration dates.


The Importance of HR Functions in an Organisation

Any organization’s human resources department is regarded as its foundation because it pays close attention to not only the productivity and qualification of its workforce but also to how they are trained and how well the finances are managed. An effective HR department develops risk management strategies, monitors existing warning signs of impending problems, and maintains work harmony.

Think You Need Some Help?

Whitecollars provides recruitment and selection services for SMEs and large enterprises, it also offers HR solutions for them to develop observable corporate growth, and it eventually presents career counselling packages that give individuals the help they need.


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