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Keep reading to learn more about the concept of human resources and its key functions and responsibilities.
Human resources (HR) refers to the department responsible for managing the entire employee experience within companies and organisations, from the time they are selected until the end of their service.
Essentially, HR comprises an integrated team whose primary role is to take care of all employees, starting from the pre-recruitment stage of searching for suitable candidates, selecting and training them, providing them with the optimal working environment to boost their productivity and help them accomplish their daily tasks, supporting their development, and finally implementing reward systems.
Undoubtedly, HR is one of the most important departments in any company, as it is primarily responsible for the cornerstone of the organisation—the employees. Virtually, no business, regardless of its size or stage of development, can function effectively without it. According to a 2023 statistical report by IBISWorld, a company specialising in researching thousands of industries worldwide, there are over 440,000 companies in the United States with nearly 1 million human resources employees.
The primary task of the human resources department is to assess and fulfil the staffing needs of the company, ensuring that all positions are filled with qualified individuals to meet the company's objectives. This includes managing job vacancies by identifying and advertising them, reviewing resumes, conducting interviews, and negotiating job assignments and financial entitlements.
Hiring competent employees is one of HR's most critical responsibilities, as the company’s success depends on the performance, creativity, and practical accomplishments of its staff rather than merely its theoretical strategies and plans.
A company’s productivity and success are largely influenced by its employees’ skills and potential. Therefore, HR's mission is to provide the necessary training and motivation to enhance these skills and improve efficiency. This helps employees excel in their current roles and prepares them for higher positions within the company, ensuring they remain valuable, long-term team members. HR can achieve this by organising in-house training sessions, supporting participation in beneficial events and conferences, or offering financial grants for developmental courses.
Human resources are responsible for managing compensation and benefits, which include basic salaries, bonus pay, incentive bonuses, and commissions. To ensure equity, employee's compensation should reflect their work efforts, years of experience, and level of education. Additionally, it should be comparable to what employees in similar roles at other companies receive.
According to the Global Workplace 2021 Report, 43% of employees from over 100 countries worldwide experienced burnout due to work-related stress. Human resources must address this by improving the work environment, establishing recreational programs, providing moral and material support, offering paid vacations, and other measures to ensure employees are happy and motivated.
Every company has specific employee laws and policies, such as work hours, dress code, and general guidelines that must be respected. Managing these policies is the responsibility of human resources, coordinating with executives and other officials to ensure employees are clearly informed of the rules they must follow.
Human resources must ensure strict compliance with labour laws established by the government and syndicates, including health insurance, employee safety, fair compensation, and minimum wages. Failing to adhere to these laws or provide a fair and safe working environment can negatively impact productivity and the company's reputation.
References
[1] builtin.com, What Is Human Resources (HR)?
[2] coursera.org, What Is Human Resources (HR)? Description, Duties, and Jobs
[3] open.lib.umn.edu, What Is Human Resources?
[4] indeed.com, Human Resources (HR): Definition and Role Responsibilities
[5] aihr.com, 12 Key Functions of Human Resources to Know in 2024