What does HR Actually do? 11 Key Responsibilities

Every company has an HR department, but many people don’t understand what it does and why it matters. We all know that HR is essential, but many of us don’t understand why. Well, HR has a vital role in growing a company as it helps find the right people needed to do so.

The popular thinking that HR is just some random team in the basement that shows up only on important company events is very wrong. The HR department plays a major role in every company, and it has some crucial functions of human resource management that affect everyone in the company.

What Are HR’s Key Responsibilities?

The HR department has a lot of responsibilities, many of which are very unpleasant and uncomfortable. No one likes to tell people that they got fired or that someone else got the job. But HR has a much broader purpose, and that is to provide full support to all employees. Here are the most important roles ever HR team has to fulfill:

1. Attracting And Selecting New Candidates

Finding the right people for the job takes a lot of effort. The HR team has the difficult task of attracting the right candidates and finding the best one among hundreds of applicants. The team has to ensure that only eligible candidates make it through the hiring process by conducting all kinds of tests and selections.

Once the choice narrows down to the most suitable candidates, the HR department must review all test results, CVs, and other information to find the best fit. The process can sometimes take a lot of time and effort. The stakes are high, and the company’s future often depends on the choice made by the HR department.

2. Performance Management

The HR team also has to make sure that every employee stays productive and engaged at all times. It takes a lot of effort to motivate multiple people, and it’s only possible through excellent leadership, setting clear goals, and open communication. The HR team is the backbone of every company, and it plays an essential role in building a stronger future for everyone involved.

3. Process Payroll

Calculating the payroll for every employee can be a very complicated and time-consuming process, but that’s another thing HR has to complete. HR team members have to calculate taxes, hours, and expenses to ensure that everyone gets paid to the fullest. Then there are other factors to keep in mind, such as bonuses and raises, which further complicate things. The entire process is repeated every pay period.

4. Conduct Disciplinary Actions

Many people fear the HR team because they are the ones that conduct disciplinary actions if someone breaks the rules. Think of the HR team as the school principal. If you’re a terrible student and don’t act according to the rules, the principal will punish you with detention or suspension.

The HR team has to consider what happened, find the right disciplinary action, and inform the person in question about the following steps. No one likes to do that, but it’s a job that has to be done.

5. Keep Company Policies Up To Date

Company policies change all the time, and it’s HR’s job to review all of them and suggest the changes that need to be made. Some policies become outdated and irrelevant over time, while others need to change as a reaction to something that happened. HR has a vital role in making decisions that change existing company policies.
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6. Keep Records Of All Employees

Every company has to keep a detailed record of all employees. HR has to make sure that all employees do what they can to improve the operation. They identify each individual’s skills looking for gaps that will help them during the hiring process.

7. Learning and Development Activities

Learning and development activities are critical if you want your workforce to obtain the skills needed to improve the entire operation. HR is responsible for organizing and conducting activities designed to help employees obtain new skills aligned with the company goals. That includes formal training, on-the-job learning, job rotation, and other challenges.

8. Promotions

HR also has to set clear rules for promotion when it comes to hiring from within. Will you get a promotion based on the time spent in the company or your skills? Is it better to select someone willing to learn or a top performer? These are just some of the questions every HR team has to answer when setting up rules for promotions.

9. TQM or Total Quality Management

TQM is a quality check of the entire organization. It takes a considerable effort to review all company elements and make sure that all employees are on the same page. Only then can the company grow and improve, and without HR, things like that would be impossible.

10. Health And Safety

HR also plays a vital role in creating and implementing health and safety regulations. Their job is to fuse these regulations with the rest of the company rules. Safety should be the most crucial part of running any company, and it’s HR’s job to make sure that everyone is clear on the rules.

11. Data and Analytics Management

Data management is one of the newest roles of HR teams, and it allows companies to make decisions based on real data.

Members of the HR teams have to read and analyze data, find the best solutions, and communicate them to the rest of the company.
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The Bottom Line

There wouldn’t be any successful companies without HR departments. The name Human Resources already says more about this department’s importance, since a company can’t run by itself.

HR is one of the essential departments in every company, and the overall success largely depends on their ability to find the right people and train them according to company goals.