What Is The Role Of Hr Personnel – SaaS businesses, banks, consulting firms, health care organizations, retail stores, and hotels all have something in common. They need people to run their business operations and generate revenue.

Of all the resources a company uses to generate revenue, people are the most important. That’s why organizations have a dedicated department for attracting, developing and retaining them – human resources (HR).

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Attracting, developing and retaining people has never been more difficult due to the increasing number (and complexity) of external factors such as globalization, technology and changing employee expectations.

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In this period of uncertainty and disruption, organizational leadership is increasingly looking to the HR department for help. According to SHRM’s 2021-2022 State of the Workplace Study, 83% of HR respondents agreed that “senior leaders rely on them to help navigate new situations or practices.”

Read this ultimate guide to HR to understand why HR is critical to business and how to optimize your own HR department and strategy.

Human resource management (HRM) is the set of tasks and activities related to people in an organization that contribute to overall performance. This includes recruiting people, hiring them, training them, compensating them, retaining them, managing their performance and developing policies about them.

The most obvious function of HRM is recruiting and hiring. HRM professionals are responsible for finding, screening and hiring candidates who meet the qualifications required for specified positions. This process involves several steps such as:

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According to SHRM’s State of the Workplace study, 68% of organizations prioritize finding and recruiting talent with the right skills, making it the third highest priority for 2022.

One of the most important aspects of HRM is the development of policies that ensure fairness and consistency within an organization. While HRM is responsible for recognizing the need for a policy or policy change, they work with managers and executives to gain their input and buy-in. HRM is then responsible for drafting the policy and sharing it with employees.

The responsibility of HRM professionals does not end after recruiting candidates – they must train these employees to continue to grow and develop new skills in their roles. Effective training programs not only help increase productivity, but also employee motivation.

Examples of training and development programs are professional training, product training, policy and legal training, and team building activities.

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Training and development should be aligned with the needs of the organization. For example, if it is preparing for the imminent retirement of many executives, an organization might focus more on leadership development programs for its vice presidents and executives.

HR professionals must ensure that the compensation and benefits they provide to employees not only meet industry standards, but are also fair considering the number of years they have worked for the organization and their level of experience and education . Also, compensation packages must be competitive enough to attract and retain the best candidates to work for the organization.

According to SHRM’s State of the Workplace Study, 19% of HR respondents indicated a need to increase benefits and compensation for current and/or new talent to strengthen their organization’s competitiveness.

Employee retention is another critical function of HRM professionals. While compensation is an influential factor in motivating employees to stay with the organization, it is not the only factor. In fact, most employees leave a company for reasons other than compensation, such as their relationship with their manager or problems with the workplace environment.

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As a result, organizations are increasingly looking for other ways to retain employees besides offering increased compensation. One way is to offer more flexibility about where and when employees work. For example, some organizations are piloting a shortened four-day work week as a way to attract and retain employees.

According to SHRM’s State of the Workplace Study, 78% of organizations prioritize retaining top talent, making it the second highest priority for 2022. To do this, the HR function will need to assess and constantly iterate on retention strategies to keep pace with changing workforce demands. For example, in a Microsoft survey of more than 30,000 people in 31 countries, more than 70% of workers said they wanted flexible remote work options to continue, while more than 65% wanted more time in person with their teams. An organization’s retention strategies must respond to and support these different employee preferences.

HRM professionals are responsible for developing an effective performance management system that can be used to fairly and equitably support decisions related to training and career development, compensation, transfers, promotions, and firing or terminating employees. This system typically consists of three elements: goal setting, performance evaluation, and a performance improvement process.

Traditionally, performance management has been characterized by the annual performance review. But more recently, it’s becoming a less formalized process that focuses more on feedback and coaching than paperwork.

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This shift has occurred in part because HR professionals are focusing more on the business challenges that performance management is trying to solve. As retaining top talent becomes increasingly difficult, performance management processes that help managers not only recognize an employee’s skills and abilities, but also identify the skills they need to advance to the next desired role, can be essential in maintaining high performance.

Human resources professionals must understand and comply with any laws and regulations affecting the workforce, including how employees are hired, evaluated, promoted, and fired. The purpose of these laws and regulations is to ensure that employers treat all their employees fairly and equally. Examples include:

Compliance has become more difficult in increasingly remote and hybrid workplaces. According to SHRM’s State of the Workplace Study, 81 percent of organizations reported legal and compliance concerns in the past year. These concerns, along with labor shortages and health and safety concerns, were the top three challenges cited by HR professionals in the study.

HRM has undergone many changes in recent decades. Once limited to processing payroll, arranging company trips and filling out forms, HRM has shifted to more strategic initiatives than purely administrative tasks. Let’s take a closer look at this change below.

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HR transformation is the evolution of the chief human resources (CHRO) role and the HR function from being solely responsible for building and retaining the workforce to becoming a strategic partner in creating business value. To do this, CHROs and HR departments need to better align people strategy, process and technology with business objectives.

This call to action is all the more urgent in the age of the pandemic. In a Microsoft survey of more than 30,000 people in 31 countries, one in five respondents say their employer doesn’t care about work-life balance. 54% feel overworked and 39% feel exhausted. These statistics highlight the importance – and the challenges – of human resources in business.

There are increasingly complex external factors affecting the workforce and the workplace, including globalization, changing labor laws, rising healthcare costs, evolving employee expectations, technology in use, changing workforce demographics, and more.

For example, in a McKinsey survey of 800 executives from the United States, Australia, Canada, China, France, Germany, India, Spain, and the United Kingdom, more than a third of respondents said their organizations were not ready to address skills gaps exacerbated by automation and digitalisation.

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HR can and should help address this challenge through strategic hiring and workforce planning. For example, they can use more temporary workers and contractors to fill these skills gaps. Or they can use them as a stopgap measure while they identify future core capabilities and hire full-time employees who have those capabilities.

In the face of digitization and other external factors, companies have the opportunity to differentiate themselves by the way they attract, retain and treat their employees. Some are adopting hybrid work models, shortened work weeks or other future work trends to do this.

To free up time and resources to be able to implement these higher impact initiatives, many companies outsource some of the more administrative and transactional HR functions such as payroll administration, employee benefits, recruiting, background checks, exit interviews, management the risks. , dispute resolution, safety inspection and office policies. Other companies are looking at ways that automation and technology can make these functions more efficient.

The digital transformation of HR refers to the evolution of HR operational processes from being manual and paper-based to being automated and data-driven. Processes such as payroll, attendance systems, performance management and onboarding that once relied on documents and face-to-face meetings are now being moved to technology-based systems.

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The digital transformation of HR encompasses the many ways in which technology is adapted and integrated into the HR strategy. For example, some companies are using social media, online games and AI to digitize the way they recruit.

However, the true digital transformation of HR is not just about introducing a series of new tools to the HR function. It’s about using tools to drive a larger strategy to improve employee processes and outcomes, and it requires a re-imagining of leadership, culture and how people work.

By undergoing a digital revolution of its own, the HR function will be able to become more aligned with the organization’s goals and workforce. This alignment will allow HR to identify what tasks may be

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