The Core Functions of HR: Everything You Need to Know

Core Functions of HR

As a business owner, you know that human resources are an important part of your company. But what exactly does HR do? And what are the core functions of HR? Unfortunately, many business owners are unsure of the role HR plays in their company, and as a result, HR may not be fulfilling its potential. In this article, we have collaborated with an HR Coach to discuss the six core functions of HR and how they can benefit your business.

What Are the Six Core Functions of HR, and What Do They Involve?

Many different functions fall under the umbrella of human resources. But these are the six most important functions:

1. Employee Relations

The first core function of HR is employee relations. It involves managing the relationship between employees and the organization. It includes ensuring that employees are treated fairly and consistently and have the necessary support to do their jobs effectively. Additionally, employee relations also involve managing conflict within the workplace and handling employee grievances.

2. Training and Development

The second core function of HR is training and development. It involves identifying employees’ training and development needs and then providing them with the necessary resources to meet those needs. It may include providing employees access to online learning resources or career coaching, arranging on-site training sessions, or sending employees to off-site training courses.

3. Compensation and Benefits

The third core function of HR is compensation and benefits. It ensures that employees are compensated fairly for their work and have access to a comprehensive benefits package. It may include developing salary scales, administering bonuses and raises, and overseeing the organization’s benefits program.

4. Talent Acquisition

The fourth core function of HR is talent acquisition. It involves attracting talented individuals to the organization and hiring them for open positions. It may include conducting job fairs, developing relationships with colleges and universities, or working with recruitment agencies.

5. Performance Management

The fifth core function of HR is performance management. It involves setting performance standards for employees and assessing whether or not they are meeting those standards regularly. It may include conducting performance reviews, providing feedback to employees, and taking corrective action when necessary.

6. Organizational Development

The sixth and final core function of HR is organizational development. It involves ensuring that the organization as a whole is functioning effectively. It may include developing organizational structures, implementing change management programs, and researching best practices.

How Can HR Improve Your Business Operations and Performance?

Now that you know what the six core functions of HR are, you may be wondering how HR can benefit your business. The answer is simple: by improving your business operations and performance. Here’s how:

HR Can Improve Employee Morale

One of the most important ways that HR can benefit your business is by improving employee morale. Happy employees are more productive, and HR can help create a positive work environment by implementing policies and procedures that foster employee satisfaction.

HR Can Reduce Turnover

Another way that HR can benefit your business is by reducing turnover. High turnover rates can be expensive and disruptive to your business, but HR can help to reduce turnover by implementing policies and procedures that encourage employees to stay with the company.

HR Can Improve Communication

Another way that HR can benefit your business is by improving communication. Poor communication can lead to misunderstandings, conflict, and decreased productivity. However, HR can help to improve communication by developing policies and procedures that promote open and effective communication within the workplace.

HR Can Improve Employee Engagement

Another way that HR can benefit your business is by improving employee engagement. Engaged employees are more productive and more likely to stay with the company, so it’s important to encourage employee engagement in the workplace. HR can help improve employee engagement by implementing policies and procedures that promote a positive work-life balance. In addition, offering opportunities for employees to develop their skills and knowledge.

HR Can Improve Customer Service

Another way that HR can benefit your business is by improving customer service. Happy customers are loyal customers, so it’s important to ensure that your employees are providing excellent customer service. HR can help to improve customer service. They develop training programs that teach employees how to communicate effectively with customers and implement policies and procedures that encourage employees to provide high-quality customer service.

Bottom Line

The bottom line is this: HR plays a vital role in the success of any business. If you want to improve your business operations and performance, then you need to make sure that your HR department is functioning effectively. By understanding the six core HR functions and how they can benefit your business, you’ll be well on your way to ensuring that your HR department is working to its full potential.

Are there any other functions of HR that you think are important? Let us know in the comments below!