Human Resources (HR) is the division of a company responsible for its people. This department manages the entire lifecycle of an employee, from their initial application to their final day with the company. The responsibilities of this department are simpler to understand when categorized into five fundamental roles that structure its work.
Talent Management
This process begins with strategic workforce planning, where HR professionals work with department leaders to forecast future hiring needs based on company growth, market trends, and potential employee turnover. This stage involves creating detailed job descriptions that accurately reflect the responsibilities and required qualifications for a position.
Once a need is identified, recruitment commences by sourcing candidates through various channels. The selection process follows, where HR specialists screen applications, conduct initial interviews, and coordinate meetings with hiring managers. After a candidate accepts an offer, the onboarding process integrates the new hire into the company’s culture. The cycle concludes with offboarding, which manages an employee’s departure and includes exit interviews.
Compensation and Benefits Administration
This area is responsible for designing and managing a company’s entire rewards structure. A primary task is establishing fair and competitive salary ranges for every role. This involves conducting market research to benchmark pay against similar positions and ensuring internal pay equity to prevent wage disparities.
Beyond base salaries, this function oversees variable pay programs, such as annual bonuses, sales commissions, and profit-sharing plans. The administration of employee benefits is another component of this role. HR professionals manage enrollments and communications for health insurance, dental and vision plans, and life insurance policies. They also administer retirement savings plans, like 401(k)s, and manage policies related to paid time off.
Employee Training and Development
This function is distinct from initial onboarding and is dedicated to enhancing the skills, knowledge, and capabilities of existing employees. It operates on the principle that continuous learning drives performance. HR is responsible for identifying skill gaps and creating targeted programs to address them.
These development initiatives can take many forms, from company-wide software training to specialized workshops. HR also facilitates leadership development programs to prepare high-potential employees for future management roles. Another part of this function is career pathing, where HR works with employees and managers to map out potential career trajectories. Performance management systems are used to identify areas for professional growth and create personalized development plans.
Employee Relations and Engagement
This area of HR deals with the interpersonal dynamics of the workplace and serves as a bridge between employees and management. A part of this role involves addressing employee concerns and grievances, acting as a neutral party to mediate conflicts and find resolutions. This can range from handling disagreements between colleagues to investigating formal complaints.
HR is also tasked with improving the employee experience to boost morale and engagement through programs like recognition awards, wellness initiatives, and social events. To gauge the health of the workplace, HR conducts employee engagement surveys to gather feedback on job satisfaction, management effectiveness, and company culture. The insights from these surveys are then used to implement changes that enhance the work environment.
Compliance and Risk Management
This function protects the company from legal liabilities and employees from unfair or unsafe practices. HR professionals must stay current with employment laws and regulations at the local, state, and federal levels. This includes adherence to laws governing wages and hours, such as the Fair Labor Standards Act (FLSA), and regulations for employee leave, like the Family and Medical Leave Act (FMLA).
A primary responsibility is the development and enforcement of internal company policies and procedures, compiled in the employee handbook. These policies provide clear guidelines on conduct, anti-harassment, data privacy, and safety protocols. This HR function also manages all employee records, ensuring they are maintained securely and in accordance with legal requirements.