Employees play a key role in building the organization. According to their performance, employees can be both liabilities or assets for a company. An efficient HR department, be it in-house out outsourced HR services, is absolute for organizations of all size. Before we start out, let us understand the fundamentals of human resource management.
What is Human Resource?
In a company, the human resources department or HR deals with the hiring, administration, and training of staff. Human resources provide knowledge, tools, training, legal advice, administration, and talent management, which are necessary for the company’s survival and advancement.
What is Human Resource Management?
The Human Resource management process consists of recruiting, employing, deploying, and, most importantly, caring for the organization’s human assets. In other words, the practice of managing people to accomplish better performance.
Human Resource Management is largely responsible for enhancing the company’s performance through efficient management of human resources.
Human Resource management can be done within the company if you have an HR on board or you can outsource your HR management to an HR consultant like Prompt Personnel who can help you manage your human resources smoothly.
An HR company can help you hire both contract staffing and permanent staffing.
Let’s explore 7 HR basics that will help you drive the best results
1. Recruitment and Selection
Recruitment and selection are core responsibilities of HR, and they are widely recognized as vital functions. Do you recall your first interview experience? HR is tasked with identifying and hiring the most suitable candidates for the company. When a job vacancy arises, HR receives requests from managers and initiates the hiring process by drafting a job description. Utilizing various tools such as applicant tracking systems and platforms like Naukri and LinkedIn, HR conducts interviews, assessments, and reference checks. Candidates undergo multiple rounds of interviews before being onboarded.
2. Performance Management
A performance management system serves as a framework for providing employees with feedback on their behavior while enabling them to optimize and enhance their performance concurrently. Evaluation criteria vary depending on the nature of the job. In the annual performance management cycle, companies engage in planning, monitoring, reviewing, and rewarding employees based on their performance. Both the direct manager and HR participate in analyzing and assessing employee performance. The company determines suitability for retention based on individual performance.
3. Learning and Development
Each person’s development is molded by their life experiences, upbringing, and the cultural context of their environment. Participation in training programs coordinated by HR enables employees to acclimate to evolving processes and technologies, facilitating their self-improvement. Organizations allocate fixed budgets for learning and development initiatives. Training affords employees the chance to address skill deficiencies and advance as more proficient leaders. HR managers, in collaboration with other leaders, determine the most beneficial training approaches for enhancing employee skills.
4. Succession Planning
Succession planning involves preparing for the possibility of key employees departing from a company. For example, when a vital senior manager resigns, succession planning entails not only identifying suitable replacements but also grooming potential candidates within the organization to assume leadership roles. This proactive approach ensures continuity and minimizes disruptions, ultimately saving significant costs for the company.
5. Compensation and Benefits
Compensation comprises primary and secondary components. Primary compensation refers to direct monetary payments for work, typically encompassing monthly salaries and sometimes performance or incentive-based bonuses. Secondary benefits encompass non-monetary perks such as company-provided vehicles, laptops, additional vacation days, flexible working hours, daycare facilities, pensions, and more. The primary goal is to reward employees in ways that incentivize and motivate them.
6. Human Resource Information System (HRIS)
This refers to the tools and software utilized to streamline HR processes. It encompasses various systems such as applicant tracking, performance management, learning and development, and payroll management. As HR increasingly integrates digital solutions, the Human Resource Information System (HRIS) serves as a vital component, ensuring efficient maintenance of HR operations.
7. HR Data and Analytics
Human Resource Information Systems (HRIS) gather data crucial for informed decision-making regarding workforce needs, employee turnover, and the impact of candidate experience on customer satisfaction, among other factors. As technological advancements propel the HR sector towards greater data reliance, HR data and analytics are integral components of HR fundamentals.
These foundational HR management elements are interconnected and operate synergistically, underscoring the importance of considering them collectively to effectively manage the workforce and maximize performance.
Find the Right HR Partner
Leverage our team of HR experts, recruiters, and labor law consultants to unlock pathways to growth and success for your organization. We provide a range of services including Temporary Staffing, Permanent Staffing, Labor Law Compliance Management & Advisory, and more. Partner with us to streamline your HR processes and ensure compliance with labor regulations, enabling your business to thrive.
