The Top 5 Primary Functions of Human Resource Management

 Is your business among the over 6 million U.S. businesses that have at least one employee?

You’re in good company!

As your small business grows, hiring new employees becomes inevitable. At first, you’ll hire one or two employees to handle important functions, but as the enterprise expands, you have to build a team.

Then, you quickly realize that you need to do more than build a team. You need to build a human resource management department. But what are the functions of human resource management?

Continue reading to learn how an HR department will help take your business to the next level.

1. Developing and Implementing Human Resource Policies

Every organization has its own set of human resource policies that its workforce follows on the day-to-day. For instance, issues like employee time off and the workplace dress code or typically determined by an organization’s HR department, in accordance with the relevant laws, norms, and standards.

As such, one of the primary roles of your HR department will be to develop HR policies that suit your organization. The goal is to ensure these policies lead to the development of a workplace that’s fair and conducive for every employee to do their job.

2. Recruiting Workers

As a busy business owner, you probably know how grueling the process of hiring a new worker can be. From creating the job description to advertising the position, reviewing applications, and conducting interviews, the entire process can take several days or even weeks. To make matters worse, you might end up hiring an unsuitable employee.

A human resources department solves this problem. It takes over the job of recruiting new workers. Because the head of this department will typically be an HR specialist, you can rest assured that the company will recruit the best talent.

In addition to this, it’s the job of human resource management to develop an ideal recruitment strategy for your organization. This is the same strategy the organization will follow whenever it needs to bring in new employees.

3. Employee Training, Performance Reviews, Promotions, and Termination

When you hire an employee, it’s important to take them through on-the-job training and periodic performance reviews to ensure they’re performing as expected. Your HR department is responsible for doing this.

It’s also responsible for employee promotions and termination whenever necessary.

4. Record Keeping

Your company needs to keep a range of employee information. It’s the job of the HR department to develop a record-keeping strategy that’ll ensure all employee records are kept securely and in accordance with the relevant laws.

5. Payroll Management

In large organizations, there’s a stand-alone department tasked with payroll management. But in most small organizations, it’s not uncommon to find that the HR department is in charge of both HR and payroll.

Payroll involves employee compensation. The department ensures employees are paid their due wages in a timely manner. It also withholds taxes and submits them to the relevant government agencies.

These Are the Major Functions of Human Resource Management

With this guide on the functions of human resource management, you now know what this department will do for your business. Bear in mind, though, that these are just the major functions. There are several other minor functions.

Keep reading our blog for more tips and insights.