Human resources (HR) professionals are responsible for engaging and strategically managing employees while remaining compliant with the laws. If an organization violates these regulations, it exposes itself to risk, including lawsuits, financial losses, and reputation damage. HR roles are not full-fledged, and not one size fits all. Depending on the title, an HR employee’s responsibilities can vary greatly.
Some HR managers are responsible for staffing, others concentrate on employee development, whereas some only deal with compensation and benefits. Others are generalists who are the jack of all trades. But regardless of individual job function, there are certain basics of human resource management that need to be understood.
HR professionals often need to make on-the-spot decisions that can have severe consequences. So knowledge of common HR functions can help in making the right decisions. Let us have a look at some of the basics every HR should know.
Recruitment & Selection
Recruitment and selection are the most critical elements of HR. Selecting the best-fit candidates is a key HR responsibility. An organization achieves success only through its employees, and finding the best fits is a key task.
The request for new hires starts when a job is created, or an existing job opens. The direct managers first send the job description to HR, and HR then starts recruiting candidates. The HR takes interviews, does reference checks, and takes different assessments tests to find the best person.
Sometimes, when there are many candidates to be interviewed, HR may choose to use pre-selection tools. These tools help segregate the most experienced and qualified candidates. The successful ones continue to the next round, where they are interviewed and given tests to solve.
Once you onboard your employees’ performance management becomes an important part. It is one of the basics of human resource management. Performance management involves helping people to perform better in their jobs. It is a structure that enables employees to get feedback on their performance and with the goal to achieve more goals. Some of the examples include one-on-one performance reviews, evaluation of peers, more informal feedback, and 360-degree feedback. Successful performance management is a shared responsibility between HR and management. Regular performance management is essential as employees who consistently underperform may not be a good fit with the company and may need to be replaced.
Learning & Development
Learning and development is another essential human resource management basic every HR should be well- versed with. L&D is led by HR and sound policies that help advance the organization towards its long-term goals.
Succession planning is the course of planning for contingencies in case any employee leaves the company. For instance, a senior manager quits his/her job, having a replacement ready will guarantee continuity and will save your company significant money.
It is based on performance ratings and L&D efforts. It results in the creation of a talent pool, and nurturing the pipeline is a key to good people management.
Compensation and Benefits
Another aspect of HR basics is compensation and benefits. Fair compensation and providing employee benefits is the key to motivating and retaining employees. Compensation can be of two types, namely primary and secondary compensation. While the former involves payment for work, which is often a monthly salary and performance-based pay. The latter involves all non-monetary rewards. These include flexible working times, day-care, laptops, holidays, and pensions.
Human Resource Information System
HRIS supports all the HR processes. For example, an Applicant Tracking System is used to track applications and hires. For performance management, a performance management solution is used to keep track of individual goals and calculate performance ratings. For L&D, a Learning Management System is used for the distribution of work internally. At the same time, HR systems are used to keep track of budgets and training approvals. For compensation, a payroll system is used, and there are digital tools that enable effective succession planning. All these functionalities can be achieved by implementing the HRIS.
HR Data and Analytics
In the last half-decade, HR has made a significant shift and adopted a data-driven approach. As we know, the HRIS is a data-entry system. The data systems can be used to make informed decisions. An easy way to keep track of important data is through HR metrics or HR KPIs. Using HR analytics, HR can also make forecast trends. For instance, workforce needs, candidate experience, and many others. By actively measuring and analyzing this data, HR can make more data-driven decisions. These decisions are objective, which makes it easier to find management support for these decisions.
These were some of the basics of human resource management every HR personnel must know. Did we miss out on any key aspect? Share your views in the comments below!
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