Business What Are the Functions of HR? Team TechagerApril 23, 202201.9K views What are the functions of HRM? Let us explore some of these functions in this article. These include Compensation & Benefits, Training & Development, Payroll administration, and Employee engagement. If you’re not sure how these functions fit into the overall business strategy, please contact us for information. However, before we get into those functions, let’s look at the main ones. Table of Contents Employee engagementPayroll administrationCompensation & benefitsFAQsWhat are the primary functions of human resources (HR)?How does HR contribute to recruitment and selection?What role does HR play in employee relations?How is HR involved in compensation and benefits management?What is the role of HR in training and development? Employee engagement The key to a high-performing organization is employee engagement. Engaged employees want to work for their company, which benefits profits. Highly engaged employees are more likely to stay with the company, improve productivity, and provide exceptional customer service. Employee engagement can be a high-risk, low-return investment, but it will pay off in the long run. How can you improve employee engagement? The best way to gauge employee engagement is to use measurable data. Surveys effectively measure employee satisfaction, but you need to supplement these results with data that can be verified independently. For example, a pulse survey can help you identify employees who need more engagement, while employee focus groups provide information about meeting at the individual level. Ideally, employee engagement should be measured throughout an employee’s entire career cycle, including at the beginning, middle, and end. Payroll administration Many people feel that payroll is an HR function and should not be transferred to finance. In reality, payroll falls under the human resources umbrella. Payroll administrators are often asked to change the financial system, which a non-accountant cannot do. But the purpose of HR is to help employees. So, it’s no surprise that the department handles payroll. And there are several ways to separate payroll administration from finance. Payroll administration falls under human resources, which is an obvious fit. The department deals with compliance issues and deductions, so it’s only natural that it would also handle payroll administration. In addition, since many people in HR also take employee relations, they’re ideally suited to handle this function. Thankfully, payroll outsourcing can improve efficiency, accuracy, and cultural factors. Training & development The HR function of training and development helps to make employees more productive. Every individual has a professional as well as a personal goal. It’s up to the HR staff to understand these goals and provide training and development opportunities that help employees reach them. Ultimately, the end goal of the HR function is to help employees unlock their full potential in their careers. In this way, they help the company improve the quality of the work they produce. While HR is responsible for overseeing general management, L&D has a more specific focus. HR professionals handle employee relations and payroll and recruit new employees. In contrast, L&D specialists focus on professional development for employees, evaluating their skills, and creating learning solutions. There is some overlap between the L&D and HR functions, including onboarding and succession planning. Training and development can play a vital role in closing the gap between the workforce of today and the workforce of the future. Compensation & benefits The Human Resources (HR) function oversees employee compensation and benefits design. Typically, HR organizations are broken down into several groups, including HR business partners, HR centers of excellence, and HR shared services. However, compensation & benefits is a core HR function. Several internal and external factors influence employee compensation and benefits. The most significant internal factors include business objectives, labor unions, organizational culture, and structure. Effective compensation management benefits the employee and the employer. Ultimately, employees who receive fair and generous compensation are more likely to stay with the company and perform well. This, in turn, leads to tremendous company success. Therefore, a key role for HR leaders is to set precise compensation and benefits policies and strategies. The company’s compensation philosophy documents its compensation policies and practices. Adherence to the philosophy demonstrates the company’s integrity and transparency. FAQs What are the primary functions of human resources (HR)?Key HR functions include recruitment and selection, employee relations, compensation and benefits, training and development, and ensuring legal compliance.How does HR contribute to recruitment and selection?HR manages the entire recruitment process, from identifying staffing needs and job posting, to screening candidates, conducting interviews, and selecting the most suitable hires.What role does HR play in employee relations?HR fosters positive employee relations through conflict resolution, performance management, and promoting a healthy work environment, ultimately helping to retain and motivate staff.How is HR involved in compensation and benefits management?HR designs and administers competitive compensation packages, including salaries, bonuses, and benefits, ensuring they align with market trends and company goals.What is the role of HR in training and development?HR identifies training needs, develops programs to enhance employee skills, and provides opportunities for professional growth, contributing to improved productivity and job satisfaction.