Ask anyone working in a corporate environment about what frustrates them the most, and many will point to inefficiencies in HR processes. Whether it's delayed recruitment, misunderstandings in company policy, or a lack of employee development, these HR pain points are all too common. Understanding "what does HR do" becomes critical as companies strive to enhance efficiency, retain talent, and foster a productive workplace culture.
You’ll learn:
- The Core Functions of HR
- Strategic Role of HR in Companies
- Which Tools HR Uses
- Common Misconceptions About HR
- FAQs on HR Roles
The Core Functions of HR
Human Resources (HR) is often perceived as merely a department that oversees hiring, firing, and managing employee benefits. While these tasks are certainly within HR's domain, the role of HR is far more expansive and intricate. So, what does HR do at its core?
Recruitment and Hiring
Recruitment is perhaps the most visible HR function. HR professionals develop job descriptions, manage postings on platforms like LinkedIn, and screen potential candidates. They lead the interview process and collaborate with department heads to select the best fit for each role. According to a 2022 LinkedIn survey, 83% of businesses reported that improving their recruitment process was a key HR priority.
Employee Benefits Administration
Another critical aspect is managing employee benefits. Health insurance, retirement plans, and other perks are complex to navigate without HR expertise. When employees understand and utilize these benefits effectively, it leads to increased job satisfaction and retention.
Training and Development
HR teams are responsible for onboarding programs and ongoing employee training. By identifying skill gaps and creating development programs, HR ensures that employees remain competitive within their fields. For instance, Google offers a variety of in-house courses to help employees advance their skills in technology, leadership, and more.
Strategic Role of HR in Companies
Beyond administrative support, HR plays a pivotal strategic role in companies by aligning human resources goals with business objectives. Here’s how HR contributes strategically:
Talent Management and Succession Planning
HR is crucial in identifying high potential employees and preparing them for future leadership roles. Effective talent management creates a robust pipeline of leaders ready to move up as opportunities arise. Zappos, for instance, is renowned for its leadership pipeline developed through targeted HR initiatives.
Fostering Company Culture
What does HR do to influence company culture? Quite a lot. HR initiates programs that promote values like collaboration, innovation, and respect. By crafting policies that reflect these values, HR sets the tone for a positive work environment. Adobe’s “Kickbox” project is a great example where HR-led initiatives fostered a culture of innovation by enabling employees to pursue their creative ideas.
Compliance and Risk Management
HR ensures that the company complies with labor laws and employment standards, mitigating risks regarding discrimination, harassment, and other sensitive issues. Failure in compliance can lead to legal troubles, as evidenced by numerous cases where companies faced lawsuits due to inadequate HR practices.
Which Tools HR Uses
HR departments use a range of software tools to increase efficiency and improve their service delivery. Here, we compare various HR tools and explain what each tool does in the context of key HR roles.
Applicant Tracking Systems (ATS)
What does HR do with an ATS? This tool streamlines recruitment by managing resumes, tracking applicants, and facilitating communication. Greenhouse, for example, is a popular ATS known for its customizable recruiting reports and user-friendly interface.
Performance Management Software
Software like Lattice and 15Five provides platforms for continuous feedback, goal tracking, and performance reviews. These tools allow HR to monitor employee performance and encourage a culture of open communication and feedback.
Learning Management Systems (LMS)
An LMS such as Cornerstone or Moodle helps HR manage training programs, track employee progress, and ensure compliance training is completed. Organizations like IBM use custom LMS platforms to provide tailored employee development modules.
Common Misconceptions About HR
There are several misconceptions about what does HR do, and these can lead to underutilizing HR’s capabilities.
HR is Only About Hiring and Firing
Many think HR's role is limited to recruitment and termination. In reality, HR handles a spectrum of functions from strategic planning to employee advocacy, making pivotal contributions across different levels of the organization.
HR Works Against Employees
Some employees see HR as siding with management, creating a "them vs. us" mindset. However, HR functions as a bridge, advocating for both employee well-being and organizational success.
FAQs on HR Roles
How does HR support employee engagement?
HR supports employee engagement through initiatives like feedback surveys, team-building activities, recognition programs, and career development opportunities. These initiatives foster a sense of belonging and motivation among employees.
Why is HR important for compliance?
HR ensures that the company complies with employment laws and standards, protecting the company from legal issues and fostering a safe, equitable workplace. They stay updated with laws to implement necessary policies and training.
Can HR improve company profitability?
Yes, effective HR practices can enhance company profitability. By attracting and retaining top talent, improving employee performance, and fostering a productive culture, HR directly impacts the organization's bottom line.
What role does HR play in change management?
HR plays a key role in change management by developing communication strategies, training programs, and support systems to guide employees through organizational changes. They help mitigate resistance and increase acceptance of new processes.
Bullet Point Summary
- Recruitment: HR manages job postings, interviews, and hiring in collaboration with department managers.
- Employee Benefits: HR administers and explains employee benefits, leading to improved satisfaction.
- Training & Development: Robust programs help employees grow professionally, filling skill gaps.
- Compliance: HR ensures legal compliance in employment practices, mitigating risks.
- Cultural Leadership: HR influences company values and sets policies promoting a positive work environment.
- Tools Used: ATS, performance management software, and LMS are used for streamlined HR operations.
To conclude, understanding what HR does is critical for recognizing its multidimensional impact on a business. Far beyond recruitment and policy enforcement, HR is a strategic partner in shaping company culture, driving talent management, and ensuring compliance. Through the use of cutting-edge tools and practices, HR empowers both organizational growth and individual development. As you consider the question, “what does HR do,” it's important to appreciate the complexity and breadth of its role and the value it adds to any organization.