The Multifaceted Role of Human Resources in Business Support
Human Resources (HR) is a critical component of any business, large or small. Often perceived as the department responsible for hiring and firing, HR’s role is far more complex and integral to the success of a company. This article explores the myriad ways in which HR supports a business, highlighting its importance beyond HR advice and guidance.
1. Safeguarding the Workplace
One of the primary roles of HR is to safeguard the workplace. This involves ensuring a safe and healthy work environment for all employees. HR is responsible for implementing policies that comply with occupational health and safety regulations. They conduct regular risk assessments, provide safety training, and respond to any workplace incidents. By safeguarding the workplace, HR helps in reducing liabilities and fostering a culture of safety and well-being.
2. Recruitment and Talent Acquisition
HR plays a pivotal role in recruiting and acquiring talent. They are responsible for identifying the staffing needs of the company, sourcing candidates, conducting interviews, and selecting the right individuals for the job. HR ensures that the recruitment process is fair, efficient, and aligned with the company’s strategic goals. By bringing in talented individuals, HR contributes directly to the growth and success of the business.
3. Employee Development and Training
Investing in employee development is crucial for any business. HR is responsible for identifying training needs, developing training programs, and monitoring their effectiveness. They help employees acquire new skills, advance their careers, and stay updated with industry trends. This not only enhances employee satisfaction but also ensures that the company has a skilled workforce capable of meeting its objectives.
4. Performance Management
HR is instrumental in developing and implementing performance management systems. These systems help in setting clear expectations, evaluating employee performance, and providing feedback. HR ensures that performance reviews are conducted fairly and consistently and that they are used as a tool for employee development rather than just evaluation.
5. Employee Relations and Engagement
HR plays a key role in managing employee relations and fostering a positive work environment. They address employee grievances, mediate conflicts, and ensure that the workplace is free from harassment and discrimination. By actively working to improve employee engagement, HR contributes to higher job satisfaction, reduced turnover, and better productivity.
6. Compensation and Benefits
HR is responsible for designing and managing compensation and benefits programs. They ensure that the company’s pay structure is competitive and fair and that benefits align with employee needs. This includes salary, bonuses, health insurance, retirement plans, and other perks. Effective compensation and benefits strategies help in attracting and retaining top talent.
7. Compliance with Laws and Regulations
HR ensures that the company complies with all labour laws and employment regulations. This includes everything from wage laws to anti-discrimination policies. By staying updated with legal changes and ensuring compliance, HR protects the company from legal risks and potential lawsuits.
8. Strategic Planning
HR contributes to strategic planning by aligning HR strategies with business objectives. They provide insights on workforce trends, help in succession planning, and advise on the impact of business decisions on employees. By participating in strategic planning, HR ensures that human capital is considered in all business decisions.
Human Resources is a multifaceted department that plays a crucial role in the success of a business. From safeguarding the workplace to participating in strategic planning, HR’s responsibilities are diverse and integral to every aspect of a company. By effectively managing human capital, HR not only supports but also drives business growth and success.
The Employee Life-Cycle
In addition to those roles and functions, HR advice and guidance cover the whole spectrum of the employee lifecycle. The typical employee lifecycle traverses many employee/employer interventions as follows:
Before you even think about employing someone in your business you need to understand your labour market. The labour market sets out the availability, geographical mapping and salary expectations for roles right across the globe. You need to know your labour market so you can identify those roles you need, where you are going to get them from and what you will pay them. Depending on the competition in your field of expertise, you will need to create an effective attraction strategy so you can attract suitably capable employees for your business.
2. Recruitment and resourcing
Deciding on how to recruit the best people for your business is an ever-moving feast. Where you can source the right talent may shift depending on global or local factors. How you develop the recruitment process will depend on the level of expertise you need, as well as the availability of talent for your industry. Developing a workforce plan which sets out the capability you need along with supply and demand factors, within your financial parameters is key to fulfilling existing and future aims.
3. Pay and reward
There are levels of expertise you need for determining and paying salaries and other financial rewards. For more complicated salary frameworks you may need to employ a pay and reward specialist. However, for more simple strategies for pay linked to the labour market, a good HR professional will be able to help you set the right rates. Pay and reward is also a fairly transactional activity which can be administered via your HR IT system or it might be the domain of your finance department. Whichever it is, HR professionals can help with queries and protocols.
4. Contractual issues
Contractual issues are not just about the terms and conditions of employment, although that is an important aspect. Employee policies are also vital to get right. Well-written and specialised policies can help both protect your business and also set the culture of the business. Employee relations are important whether or not you have a Trade Union. Making sure that any changes in hard contractual terms, as well as any changes to the psychological contract, are legal and workable is key to the business working well.
Unstructured or thoughtless onboarding of new employees no matter what level they are working at can be costly. They say first impressions count, and it can be very true. In those early days and weeks, your employees are making their minds up about your business. They will be deciding whether it is a long-term prospect or not. Losing people because of poor induction sacrifices your investment in any recruitment and training. Crucially people leaving or performing poorly, as a result, can be disruptive for your whole team.
Setting up a performance regime, like induction, if done badly can hinder your business rather than enhance it. Your performance regime should be designed to drive up performance. Done badly it can feel like bureaucratic nonsense to your team. Developing and reviewing team and individual performance is essential in a world where nothing stays the same for long.
Mapping out your changing capability needs is key to the continued success of your business. Making sure you have the right capabilities to deliver your results and forecasting for future capability if done right can mean you are ahead of the game in your industry.
There is a wealth of research which shows how businesses perform better if they have a diverse workforce which mirrors the community they serve. Making sure you are tracking the diverse mix of your employees is essential. Impacting policy or strategic decisions on your diverse workforce must be carried out to understand how they affect people from protected characteristics and more.
Development can come in a myriad of forms. Deciding what kind of development is essential for your teams and employees is an art. You will need to base your development needs and any associated budget on your priorities for your business. Development is not just about training, but great can be achieved by assigning tasks or projects to your talented people. Getting a real return on investment in any development programme or task is a real skill which can be planned from the outset.
Some businesses necessarily expect a high turnover of people. Where students or very young people are employed, often the nature of the work and the recruitment pool means people will move around quickly. Conversely, some lumbering organisations can retain their people for too long. So there is no “right” attrition or retention rate. It is always good though to determine what is right for your business and then analyse where you are in terms of retaining the right people or exiting where necessary.
Whether you are helping employees leave effectively and smoothly when they choose to move on, or you are choosing to let go of someone, you will need to have good processes in place to protect you and your business. Sometimes redundancies or transfer of employees is the right way to go, and navigating those transactions correctly is important. Additionally, the right retirement plans and processes for employees must be in place.
12. Employment Law
The employment law landscape is ever-changing. As new legislation or regulation becomes law, you must interpret your policies with a keen eye on how they align with any changes. You must also make sure your policies are designed to help you achieve your overall business aims and help to create the culture you want. Understanding key regulations and how to apply them will help the smooth conduct of your business. Resolving employee disputes and grievances can avoid lengthy employment tribunals or court cases. Dealing effectively with conduct issues, with appropriate HR advice and guidance protects you and the rest of your team.
HR Health Check
You must have access to professional HR advice and guidance, from a practitioner who will help you not only to resolve employment issues as they arise but also to make sure that your practices and policies are foolproof so that problems don’t recur. The practitioner can also analyze trends and performance results from your data and give you a health check on how effective your people management practices are for your business.
Human Resources professionals are experts in managing and advising on the whole range of employment contractual and transactional processes. They will aim to minimise risk and help navigate organisations through difficult times, through bespoke HR advice and guidance. They will help organisations make the right decisions using holistic risk assessment principles.
Look to a Chartered professional to provide your HR advice and guidance. With a Chartered CIPD membership, you are assured of professionalism and expertise in delivering HR advice and guidance. Get more information on CIPD professional standards
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