The Role of HR in Business Management

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Human resources departments are responsible for managing the entire life cycle of an employee, from recruiting to firing and everything in between. Without HR, there would be a significant lack of organization within a company, with disappointing performance and issues with productivity. HR primarily deals with employee-related matters, but this can extend to policies within the company. There are many reasons why HR plays a vital role in business management, including taking on the responsibilities that no other department could.

Benefits of a Strong HR Team

With HR being responsible for most employee affairs, a dedicated team can help to improve employee retention, satisfaction, and productivity within the company contributing to the overall success of the business. Strong HR teams usually prioritize consistent practices to avoid persistent conflict or complaints. As a result of a strong HR team, positive working relationships will be built within a company, and a positive working environment can be established.

Responsibilities of HR 

  • Recruiting

HR teams are responsible for filling an opening by listing job vacancies and handling applications, such as using applicant tracking software to track and filter candidates that are suitable for the role.

  • Onboarding

Ensuring a new employee is welcomed and has a smooth transition into the culture of the company is also an HR task. This can include ice-breaker activities, orientation programs, and providing information on the vision and values of the company.

  • Payroll

Payroll processing is a time-consuming task dealt with by the HR team, who are responsible for managing employee working hours, salary, changes to pay, bonuses, and benefit deductions.

  • Discipline

The most uncomfortable part of an HR team’s day could be considered taking disciplinary action. For instance, warning employees who have repeated lateness and investigating issues to understand the cause and find a suitable solution.

  • Policies

Company and employee policies must regularly be updated, either periodically or when the latest version no longer serves the company. It is the responsibility of HR to make official updates and notify employees of the changes.

  • Employee Records

The HR department has a duty to handle company data as is mandated by law and is expected to comply with relevant regulations when managing employee records, such as personal details or emergency information. 

  • Training

Offering guidance to help employees such as managers thrive in the role is another power of an HR team, as well as assisting in providing additional education for career growth. Training is implemented by HR to ensure employees feel supported and confident in their roles.

  • Support

Beyond training and professional benefits, HR teams offer health and wellbeing advice and support to employees in circumstances like physical or mental illness, pregnancy, debt, parenting, and other life events that can interrupt abilities to work.

As demonstrated, HR teams take on many burdens, holding a business together with management, organization, and support. Strong HR teams offer expertise in recruiting, onboarding, payroll, discipline, policies, employee records, and training to ensure a smooth running of an employee life cycle at the company. HR departments usually tackle fast-paced schedules, dedicating to a key role in business management.

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