What Is The Role Of An Hr Manager – HR performs many important functions in an organization. These include recruitment, performance management, learning and development, and many others. In total, there are 12 major functions of human resource management.
If we want to understand the functions of human resources, we need to understand what human resource management (HRM) is.
What Is The Role Of An Hr Manager
According to Storey (1995), HRM is a distinctive approach to employment management that seeks to achieve competitive advantage through the strategic deployment of a highly committed and competent workforce using an integrated array of cultural, structural, and personnel techniques.
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In this article, we will go through 12 HR functions and explain how they help an organization move forward. These functions are:
The first HR function is to know the future needs of the organization. What kind of people does the organization need and how many? Knowing this will shape recruiting, selection, performance management, learning and development, and all other HR functions.
In short, human resource planning is a continuous, data-driven process to ensure that an organization has the right people in the right place at the right time to achieve its strategic goals.
Attracting people usually starts with the employer brand. In fact, businesses with a great employer brand receive 50% more qualified applicants. Clearly, there are many benefits to being an attractive employer – just like it is the other way around. A good example of the latter is the smoking industry which struggles to attract talent due to its stigmatized reputation.
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With a strong employer brand and the right sourcing strategies, you’re already halfway there. Once candidates apply, the selection process is an HR tool for choosing the best-qualified and highest-potential candidates. It is important to build an effective recruitment selection process, as bad hires can reduce productivity by up to 36%.
Technological advances in recruiting have been very rapid, and as a result, there are different types of recruiting tools for each part of your recruiting funnel. 3. Performance Management
Performance management is essential to ensure workers remain productive and engaged. Good performance management includes strong leadership, clear goal setting, and open feedback.
While (bi)annual performance reviews in which employees are reviewed by their manager are still common, 69% of HR professionals believe that in the near future, performance management will become more frequent and include natural conversations.
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360-degree feedback is also gaining popularity as a performance management tool. With this type of feedback, peers, managers, subordinates, and sometimes even customers review the employee’s performance, which can be very helpful in uncovering areas of potential improvement.
Performance management is a means of closing the gap between the workforce you have today and the workforce you want to be tomorrow by helping employees develop the skills and competencies that will prepare them for the future. 4. Learning and Development
Enabling employees to develop the skills they will need for the future is an essential responsibility of HR. This is also related to the first HR function we listed, human resource planning, in which HR bridges the gap between today’s workforce and the workforce needed in the near future.
Traditionally, organizations have a set budget for learning and development. This budget is then distributed among the employees. In some countries, this expense is mandatory. For example, in the UK companies with an annual wage bill of more than £3 million pay a mandatory rate of 0.5% set for the vocational education of their employees.
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In other countries, such as Belgium and the Netherlands, L&D falls under the employer’s responsibility to look after its employees. In the third group of countries, like the US, this is almost an unregulated area.
Although regulations differ, almost all employers understand the value of investing in the (future) skills of their employees. It is the responsibility of the HR department to steer these efforts in the right direction. What’s more, HR plays an increasingly important role in upskilling leaders and managers, which is one of the key HR trends for 2023.
According to Janice Burns, Chief People Officer at Degree, while organizations must balance economic factors and prioritize based on value opportunities, investing in employee skills is essential for retention and, ultimately, maintaining value for the organization.
“Creating a space where employees can upskill brings not only overall benefits but also individual needs. Employees are now, more than ever, looking for ways to better themselves for their professional futures. Employers who provide L&D resources for upskilling help their employees for their future endeavors. Empowering, motivating environment and investing,” Burns explained. 5. Career planning
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The fifth function of human resource management is career planning, guidance, and development for employees, also known as career pathing.
Showing employees how their ambitions can align with the company’s future helps engage and retain them. For an organization, there are benefits to good succession planning, higher productivity, and a stronger employer brand.
“Organizations often prefer to source talent internally, promoting existing employees wherever possible,” said Ben Schwenke, business psychologist at Test Partnership.
“However, this approach only works if your employees have the ability to demonstrate the necessary abilities, skills, and knowledge. By considering possible career trajectories, HR professionals can ensure that their employees are well-equipped to advance in their existing roles. are, saving them from having to look for talent externally,” noted Schwenke.
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Job evaluation is the technical aspect of HR. It involves comparing different parts of the overall HR operation. This may include the quality and availability of workers, job location, working hours, financial conditions, job responsibilities and how much value the job adds to your organization. The idea behind job evaluation is that similar tasks should be rewarded equally.
Performance appraisal helps the HR department to ensure that the company is successful both at the strategic level and at the service delivery and support level. Thus, the company is able to provide the required level of services while operating strategically. 7. Awards
Rewarding employees for their work is another essential HR function. Compensation and benefits are integral to attracting the right type of candidate for the role and the company. These vary across regions, countries and cultures. In some countries, such as the US, health insurance is often part of a job offer. However, in countries such as the UK, where the public health system provides the majority of health services, this is not so common.
A total reward framework shows that rewards are more than just money and other monetary benefits. They can also have relational and psychological consequences.
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Rewards include salary but growth and career opportunities, status, recognition, good organizational culture, and a satisfactory work-life balance. For example, great colleagues and meaningful work are also rewarding to employees. Monetary rewards of work include financial rewards and other (secondary) benefits.
The Employee Value Proposition (EVP) covers all these aspects. Your company’s EVP is different from the external image and brand. It is the image that a company reflects to its employees. Thus the rewards are more than just financial. Here is a non-comprehensive overview of the total rewards:
75% of organizations expect compensation to become more challenging in the near future, and only 53% are fairly confident or very confident in their total rewards package. It’s up to HR and compensation and benefits teams to design a total rewards strategy that works for their employees and the business.
Functions 1 to 7 all fall within the scope of what is called talent management; They aim to attract, develop, motivate and retain (high performing) employees. 8. Industrial Relations
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Another function of human resources is to maintain and develop relationships with labor unions and other collectives and their members.
Unionization is still prevalent in Europe, although it is declining overall. The most recent figures show that 92.2% of employees in Iceland were members of a union, and 67% of employees in Denmark. However, the UK and Estonia accounted for only 23.5% and 6% of employees respectively. In the US, trade union membership is low, with 10.1% of employees being members.
Maintaining a good relationship with unions helps identify and resolve potential conflicts quickly and will also be beneficial during more difficult economic times when layoffs or other actions are required. 9. Employee participation and communication
According to Dave Ulrich, one of the key roles of HR is to be a trusted agent for employees. Employees need to be informed and heard on various topics relevant to them. Communication is concerned with disseminating relevant information to employees.
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Being a people advocate is one of the four core HR competencies we’ve identified for the future of the HR workforce. People advocacy includes building culture, people practices, and being a workplace champion and communication expert.
Linda Schaefer, chief person and operations officer at Checker, highlights the importance of the HR communications function.
Human resources play an important role in creating and enforcing health and safety regulations. Making these rules part of the company culture is one of the main functions of human resources.
A famous example is the energy and petrochemical company Shell where stairs without railings are prohibited – even at the company’s headquarters. It is part of the shell
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