Roles and functions of the HR department in a business

The human resources department is an indispensable part of every business. Regardless of whether a business is large or small, it needs an HR department to recruit employees, take charge of and care for employees’ well-being at the workplace, as well as make decisions related to employee benefits. So, what are the functions of the HR department and what is its role in a business? Let’s find the answers in the article below.

1. What role does the HR department play in a business?

According to research, the Human Resources department plays an extremely important role in a business. This is because the HR department is directly responsible for everything related to human resource management. Although it is not a department that directly carries out business activities, it plays a crucial role in planning and building strategies and policies for the company’s human resource development

In a business, each department is like a part of the human body. When one part has a problem, it will affect other members and the entire business system. Therefore, the HR department has an important role that influences the development of the business. 

Thus, HR functions are the main jobs and tasks of the human resources department in a business. Each function is a series of interconnected activities performed to carry out different tasks and roles to meet all the needs of the business. The HR department will perform these activities to bring common benefits to both employees and the overall business goals of the company

2. Departments within a company’s HR department

Depending on the industry and size of the business, the HR department will be divided into different sections. Typically, an HR department will include main sections such as: the Compensation & Benefits department (C&B), the Recruitment department, the HR Admin department, and the Training & Development department (T&D).

Below are the specific tasks of each department within the HR department

2.1 Recruitment Department

This is the department that directly searches for and finds talented and suitable personnel for the business. The main tasks of this department are to plan, post job advertisements, and implement communication campaigns to carry out recruitment. To find suitable talent, the HR department needs to coordinate with other departments to understand their recruitment needs and establish criteria for selecting suitable candidates. From there, they will decide what recruitment content to post and which channels to use to attract human resources in the best way.

2.2 Compensation & Benefits Department (C&B)

C&B is considered an important department that holds the income level of all personnel in the company; they have the ability to process and analyze data effectively. The Compensation & Benefits department is the one that employees are most interested in. The main job of this department is to build and manage the entire system of salaries, bonuses, benefits, and other company policies. Therefore, those in charge of this work need to have a clear understanding of labor law, insurance law, as well as related official letters and decrees. 

2.3 HR Admin Department

In addition to tasks related to HR operations, the admin department is also responsible for administrative tasks such as: paperwork, procedures, personnel records, and company assets. Besides, HR also performs tasks related to HR administration such as (office supplies, scheduling meetings, answering phones, appointments, company events,…) and may also take on some duties of other departments:

2.4 Training & Development Department (T&D)

An important department in a business is the training and development department. This department is tasked with improving the work performance of individuals and groups by fostering knowledge and enhancing soft skills for employees. It is clear that training to improve personnel capacity and skills is an indispensable activity in the process of comprehensive human resource development.

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3. The main functions of the HR department

3.1. Planning and executing personnel recruitment

Recruitment and selection is a basic function of the HR department. It includes identifying the needs of a role, writing a job description, defining the role’s requirements and the skill set of a suitable candidate, setting a salary budget, advertising to the right people, screening, interviewing, and selecting the most suitable person for the job. If done correctly, by clearly defining job characteristics and specifying the employee profile, placing the perfect candidates in the right positions can profoundly impact employee retention and create a happier workforce.

3.2. Managing personnel information and records 

Managing contracts, procedures, and personnel records is a function handled by the HR and administrative departments. Accordingly, HR will manage and be responsible for the personnel records management process, which includes all employee contracts, documents, official letters, etc. Some specific tasks of managing a business’s personnel records include:

• Managing labor contracts, personnel records, and related documents
• Guiding employees on labor contracts, clarifying salary, bonuses, and company benefit policies
• Implementing benefit policies, handling resignations or contract expirations according to regulations
• Delivering and receiving correspondence, contracts, and invoices for the company and its departments
• Storing and managing procedures, labor contracts, certificates of merit, onboarding procedures, or labor contract terminations…

3.3. Training and Human Resource Development

Training personnel has the function of human resource management and development, which is a crucial factor in addressing skill gaps or training needs among employees and providing them with the necessary tools to strengthen their skill sets, improve confidence, and perform more effectively. Employers who invest in their workforce in this way will see a marked increase in employee satisfaction and morale. They feel valued and supported and are more likely to feel motivated in their roles.

Employee training also benefits the company. Investing in employee development encourages employee retention and keeps recruitment costs to a minimum. It also makes your company more attractive to potential new hires who are looking to improve their skills and be provided with more opportunities. Training is also crucial for industry changes and innovations, keeping employees up-to-date with the latest developments to maintain the organization as a leader and top competitor in its field.

3.4. Maintaining and Managing Human Resource Activities

There are two main functions when it comes to Employee Relations (ER). First, HR helps prevent and resolve issues or disputes between employees and management. Second, they assist in creating and enforcing fair and consistent policies for the entire workforce. Good employee relations contribute to employee well-being. Employee relations is a term that refers to an organization’s efforts to create and maintain positive relationships between its employees and their employer.

3.5. Employee Performance Management

Performance management is a function of the HR department; it helps you track progress and evaluate the work performance and attitude of employees. A good performance management process includes quarterly or annual reviews or performance appraisals. These allow for direct communication between employees and their line managers to set clear individual goals and team objectives that align with the organization’s strategic goals.

The performance management process will include various integrated activities to form a performance management cycle. This includes planning by setting SMART goals (Specific, Measurable, Achievable, Relevant, and Time-bound) and Personal Development Plans to achieve the stated objectives, reviewing and evaluating the progress of these plans, and developing people’s knowledge, skills, and abilities to achieve their goals.

3.6. Human Resource Planning

Human resource planning is demonstrated by tracking and arranging personnel, and recommending staff for departments with personnel shortages. Evaluating and compiling relevant metrics helps the HR department forecast future human resource needs. From there, managers can implement measures to improve the quality of work and devise solutions to address the strengths and weaknesses of personnel during their work. You can use employee evaluation software

3.7. Compensation and Benefits

One of the functions of the HR department is managing compensation and benefits. It’s clear that compensation packages are a key factor in motivating, attracting, and retaining employees effectively. To attract talent, the HR department needs to offer competitive salary proposals to secure the best personnel. Additionally, the HR department needs to establish criteria and policies for salary increases to quickly boost employee performance.

3.8. Maintaining Corporate Culture

Corporate culture is considered a valuable asset, contributing to the unique identity of a business. Simply put, corporate culture is the values, beliefs, and unique characteristics of each business. In addition to performing the tasks mentioned above, managers also play the role of building and developing corporate culture, connecting employees with leadership and with the company.

From the functions of the HR department mentioned above, it is clear that the HR department plays a particularly important role in every business, contributing to the comprehensive development of human resources, from people to the company’s direction and strategy. So, what skills do managers need to meet the demands of an HR manager in the new era? Let’s find out in the content below.

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4- Essential skills for the administrative – human resources department

To become a professional HR manager, in addition to a solid foundation of professional knowledge, you need to possess soft skills and skillfully combine them to succeed in your work. Below are some essential skills you need to know in your work process:

• Communication skills
• Creating and implementing HR strategy
• Managerial HR skills in the organization
• Decision-making skills
• Listening skills
• Budgeting skills
• Training and skill development skills
• Problem-solving skills
• Negotiation skills
• Performance evaluation
• Software proficiency skills
• Persuasion skills
• Team-building skills
• Ability to work under high pressure

5. 1Office – a comprehensive HR management solution for digital businesses

Human resource management software 1Office is currently a comprehensive solution that helps businesses manage the entire HR process, such as: recruitment, timekeeping, profile management, payroll… With many outstanding features, the HRM software helps businesses digitize all records and recruitment processes quickly with just drag-and-drop operations. Below are some of the software’s standout features: