Your Guide to What Does Human Resources Actually Do?

Wondering about what does human resources actually do? and whether you should hire or outsource HR professionals to your organization?

Statistics show that disengaged employees cost the US economy over $500 billion annually.  And companies with highly engaged workforces are 21% more profitable?  These are just two statistics highlighting the critical, yet often underestimated, role of Human Resources (HR) in organizational success.

HR isn’t just about navigating paychecks and paperwork. It’s the strategic force behind a thriving workplace. This guide isn’t just about understanding HR, it’s about harnessing its potential to transform your company.

So, whether you’re a CEO navigating a talent drought, a manager struggling with employee engagement, or simply curious about the cogs that keep your workplace running, dive in!

We’re here to demystify HR, showcase its impact with data, and empower you to unlock its full power for your organization.

What Does Human Resources Actually Do?

Have you ever wondered what goes on behind the scenes to keep a company running smoothly?

Enter HR, the department that plays a vital role in the employee experience, from the moment someone applies for a job to their last day at the company. But what exactly does human resources do?

Here’s a glimpse into the diverse world of HR:

• Finding the Perfect Fit:

HR plays a key role in attracting top talent by developing effective recruitment strategies, managing the interview process, and onboarding new hires smoothly.

• Investing in Your Growth:

HR doesn’t stop after you’re hired. They are responsible for providing training and development opportunities to help you excel in your role and advance your career.

• Keeping You Covered:

HR administers employee benefits packages, ensuring you have access to health insurance, paid time off, and other valuable programs.

• Maintaining a Fair Playing Field:

HR ensures compliance with labor laws and company policies, promoting a fair and ethical work environment for everyone.

• Keeping the Lines of Communication Open:

HR acts as a communication channel between employees and management, addressing concerns, resolving conflicts, and fostering open communication.

• Building a Strong Company Culture:

HR plays a key role in shaping a positive and productive work environment, promoting collaboration, diversity, and employee well-being.

This is just a taste of what HR does. In the next section, we’ll explore what employees expect from HR, so you can understand how to best utilize the resources available to you. But first, let’s explore briefly HR history.

HR History in a Nutshell

To understand what does human resources actually do, we need to go deeper.

Once upon a time, HR was just the office record keeper, focused on keeping track of factory workers and their pay. But as times changed, so did HR! New laws meant HR needed to make sure workplaces were safe and fair. This led to a bigger role in managing employee concerns and keeping things running smoothly.

Throughout HR history and fast forward, and happy, well-trained employees became the key to success. HR stepped up, offering benefits and training programs to keep everyone motivated. Today, HR is a strategic partner, helping companies find the best talent, build a positive culture, and ultimately, achieve their goals.

It’s a whole new world for HR, and with technology on the rise, the future looks even more exciting!

In 2024: What do Employees Expect HR to Do?

In today’s competitive job market, employees have a growing set of expectations from their HR department. Some key areas where employees look to HR for support:

• Transparency and Clear Communication:

Employees want to be kept informed about company policies, benefits plans, and any changes that might affect them. Clear and regular communication from HR fosters trust and helps employees navigate the workplace effectively.

• Fair Treatment and a Safe Space:

HR is expected to be a neutral party in workplace disputes. Employees look to HR for fair investigation and resolution of any conflicts or concerns they might have. A safe space for employees to voice their concerns without fear of retaliation is crucial.

• Opportunities for Growth and Development:

Employees today value continuous learning and career advancement. They expect HR to provide access to training programs, development opportunities, and performance reviews that help them grow professionally.

• Work-Life Balance and Well-being:

The lines between work and personal life are blurring more than ever. Employees expect HR to promote healthy work-life balance practices, offer flexible work arrangements where possible, and provide resources that support their well-being, both physical and mental.

• Recognition and Appreciation:

Feeling valued and appreciated is a key motivator for employees. HR can play a role in creating a culture of recognition, where employees are acknowledged for their contributions and hard work.

By actively meeting these expectations, HR can build a strong relationship with employees, foster trust, and create a more positive and productive work environment for everyone.

Why HR is Important for Organizations?

Let’s face it, as a CEO, manager, or executive, you wear many hats. You juggle budgets, strategize growth, and keep a watchful eye on the bottom line. But what happens when your best asset – your people – becomes a source of stress?

Here’s where strong HR services and solutions step in as your secret weapon:

• The Talent Crunch is Real:

Struggling to find and retain top talent in a competitive market? HR can develop effective recruitment strategies, create a compelling employer brand, and streamline your hiring process.

• Disengaged Employees Cost You:

Low morale and productivity can cripple your bottom line. HR fosters a positive work environment, promotes employee well-being, and builds a culture of engagement.

• Legal Headaches? Not on Your Watch:

Navigating complex labor laws and regulations can be a minefield. HR ensures compliance, minimizes legal risks, and protects your organization from costly fines.

• Unclear Communication Leads to Chaos:

Confusion about policies, benefits, or company direction breeds frustration. HR promotes clear communication, keeps employees informed, and fosters a collaborative environment.

• High Turnover? You’re Hemorrhaging Money:

Replacing departing employees is expensive. HR develops strategies for talent retention, invests in employee development, and helps create a workplace where people want to stay.

Think of HR as your strategic partner, a proactive force that helps you navigate the ever-changing landscape of work. They can be the difference between a frustrated workforce and a thriving, engaged team.

So, are you ready to unleash the power of HR and unlock the full potential of your organization?

What are the 7 Functions of HR?

Now that we’ve established the critical role of HR, let’s delve into the seven key functions that keep this department humming:

1. Recruiting, Hiring, and Retaining Talent:

A strong HR function acts as a magnet, attracting top talent through effective recruitment strategies and a compelling employer brand. They streamline the hiring process, ensuring you find the right fit for your team. But the job doesn’t stop there. HR also develops strategies for retaining your best employees, fostering loyalty, and creating a workplace where people want to stay and thrive.

2. Employee Engagement:

Disengaged employees are a drain on productivity and profitability. HR fosters a positive work environment, promotes employee well-being through wellness programs and work-life balance initiatives, and builds a culture of recognition and appreciation. Engaged employees are more productive, innovative, and loyal to your organization.

3. Performance Management:

Effective performance management goes beyond annual reviews. HR management helps establish clear performance goals, provide ongoing feedback and coaching opportunities, and identify areas for employee development. This collaborative approach empowers employees, tracks progress, and ensures everyone is aligned with organizational goals.

Read more on :

• What it HR Management & Tools
• Top 12 Project Management Tools

4. Compensation and Benefits:

Attracting and retaining talent requires a competitive compensation and benefits package. HR designs and administers these programs, ensuring they remain competitive, address employee needs, and comply with regulations. Competitive benefits packages are a key factor in employee satisfaction and overall well-being.

5. Development and Training:

The world of work is constantly evolving. HR identifies training needs, develops or sources training programs, and invests in employee upskilling and reskilling initiatives. And by utilizing HR software you will ensure your workforce stays current, adapts to change, and remains competitive in the market.

6. Risk Management:

HR plays a crucial role in identifying and mitigating risks associated with employee relations, workplace safety, and legal compliance. They develop policies and procedures, conduct risk assessments, and implement training programs to minimize risks and protect your organization from potential liabilities.

7. Audits and Legal Compliance:

Labor laws and regulations are complex and ever-changing. HR ensures your organization adheres to all relevant laws and regulations. They conduct audits, monitor compliance, and provide guidance to managers on employment practices to minimize legal risks and avoid costly fines.

Effectively managing these seven HR functions is crucial for any organization’s success. HR software can significantly streamline these processes by automating tasks, centralizing data, and facilitating communication.

One lingering question continues to buzz…

When Does Your Organization Need to Hire HR?

Don’t wait for HR challenges to become major roadblocks. By recognizing the early signs and understanding the value of a strategic HR function, you can make the right decision.

Sign 1: Headcount Growth:

A common rule of thumb suggests that organizations with around 50 employees or more can benefit significantly from a dedicated HR professional. As your team grows, the burden of HR tasks becomes too cumbersome for a single leader or a team to handle effectively.

Sign 2: Increased Complexity:

As your organization grows or you’re a start-up, HR responsibilities become more complex. Compliance issues become more intricate, recruitment needs become more specialized, and employee relations may become more delicate. Outsourcing HR company for small businesses can navigate these complexities and ensure everything runs smoothly.

Sign 3: Time Drain on Leadership:

When HR tasks start to significantly eat into the time of leadership or key staff, it’s a sign you need a dedicated resource. HR professionals can handle these tasks efficiently, freeing up valuable time for leaders to focus on strategic initiatives and core business functions.

Sign 4: Employee Concerns and Disputes:

As your team grows, so does the potential for employee concerns and disputes. A dedicated HR professional can address these issues proactively, mediate conflicts, and ensure a fair and supportive work environment for everyone.

Sign 5: Retention Challenges:

Are you struggling to retain your top talent? A strong HR function can develop and implement strategies to improve employee engagement, address concerns, and create a more positive work environment, leading to higher employee retention rates.

Sign 6: Compliance Risks:

Navigating complex labor laws and regulations can be a minefield. Hiring an HR professional ensures compliance, mitigates legal risks, and protects your organization from costly fines and penalties.

Sign 7: Growth Plans:

If you’re anticipating significant growth shortly, consider investing in HR early on. A dedicated HR function can help you build a strong employer brand, develop a robust recruitment process, and ensure you’re prepared to scale effectively while maintaining a positive work culture.

The Power of Outsourcing HR instead of In-House Department

Now that you understand the importance of a strong HR function, you might be considering building an in-house HR department. However, for many organizations, especially those experiencing rapid growth or with limited resources, outsourcing HR can be a strategic and cost-effective solution.

Here’s why outsourcing HR can be the right move for you:

• Cost Savings:

Building an in-house HR team requires salaries, benefits, office space, and technology infrastructure. Outsourcing HR allows you to access a team of experts without these overhead costs.

• Scalability and Flexibility:

Your HR needs will evolve as your organization grows. HR agencies can scale their services to meet your changing demands, providing the support you need at every stage.

• Specialized Expertise:

HR agencies have access to a wider pool of HR professionals with specialized skills and experience. You can tap into this expertise to address specific challenges or implement best practices.

• Focus on Core Business:

By outsourcing HR, you free up your leadership team and internal resources to focus on your core business functions and strategic initiatives.

Whitecollars: Your Trusted Partner in Building a Thriving Workplace

We understand that every organization has unique HR needs. That’s why we offer a customized approach, ensuring you receive the services that best fit your specific requirements.

Here’s what sets Whitecollars apart:

• Proven Track Record: We have a successful history of helping organizations of all sizes achieve their HR goals.
• Client-Centric Approach: We prioritize building strong relationships with our clients, ensuring clear communication and a deep understanding of your business needs.
• Data-Driven Decisions: We leverage data and analytics to provide insights and recommendations that drive positive outcomes for your organization.
• Technology Expertise: We stay at the forefront of HR technology, utilizing innovative tools to streamline processes and improve efficiency.

Talk to one of Whitecollars experts today for a free consultation and discover how we can be your trusted partner in building your dream team!

FAQs:

What is the difference between HR and a recruitment agency?

• HR (Human Resources): An internal department within a company responsible for the overall employee life cycle, from recruitment and onboarding to training, performance management, compensation and benefits, and employee relations. HR strives to create a positive work environment and ensure legal compliance.
• Recruitment Agency: An external agency that specializes in finding and attracting qualified candidates for open positions within a company. They may source candidates, conduct initial screenings, and present qualified applicants to the hiring manager. Recruitment agencies can be helpful when a company lacks the time or resources to conduct a thorough search themselves.

What is the difference between HR and HR recruiter?

• HR: An umbrella term encompassing all aspects of people management within a company. HR professionals may include specialists in recruitment, training, compensation, and employee relations.
• HR Recruiter: A specific role within the HR department focused on attracting and selecting qualified candidates for open positions. They handle tasks like sourcing candidates, conducting interviews, and presenting shortlisted candidates to hiring managers.

Does HR involve recruitment?

Yes, recruitment is a vital function within the HR department. HR professionals may be directly involved in the recruitment process, or they may work alongside an external recruitment agency.

Does HR sit in on interviews?

HR professionals may or may not sit in on interviews, depending on the company structure and the specific role being filled. They may participate in interviews for senior positions or roles requiring specialized knowledge of HR policies and procedures. Their role during the interview may involve ensuring the interview follows a fair and consistent structure and adhering to legal guidelines.