You’ve probably heard companies say, “Our people are our greatest asset.” It’s a common phrase in the business world, but some employers really take it to heart more than others. One way to show that commitment is by having a strong human resources (HR) department.
An HR department handles everything from hiring new employees to managing compensation and addressing employee concerns. Let’s take a closer look at what human resources is all about and the important role an HR department plays in employee relations.
What is human resources (HR)?
Human resources (HR) is a collective term for the workforce or employees of a company. However, it’s also commonly used to refer to the department or group of workers responsible for managing a company’s workers.
HR professionals play a key role in making sure an organization’s workforce is well-recruited, trained, managed, and supported. When properly managed, human resources departments not only promote employee satisfaction but also help establish and realize a company’s wider vision and goals.
What is human resource management?
Human resource management takes care of a company's most important asset—its people. It involves finding great employees, helping them grow, and keeping them happy. A human resources manager makes sure everyone's pulling in the same direction to help the company succeed. They handle everything from bringing new talent on board to helping current employees level up their skills. They also keep an eye on how everyone's doing and try to create a workplace where people actually want to show up each day.
10 responsibilities of HR teams
The core duties of HR departments typically involve creating a positive work environment, promoting the well-being of employees, enforcing important workplace policies like equal employment opportunity, and helping the organization reach its goals through effective workforce management.
HR responsibilities may include the following:
1. Recruitment and staffing
Recruitment and staffing are a large part of a human resources role.
When a position opens up, HR employees will write up a job description that paints a picture of what the ideal candidate looks like. Then they'll spread the word—posting the job online, reaching out to their networks, maybe even working with recruiters to find the perfect fit.
Once applications start rolling in, HR sifts through resumes and cover letters, looking for standout candidates. They'll run background checks to make sure everything adds up before they invite candidates to interview. HR often leads these conversations, asking questions to get a feel for whether someone's a good match for the role and the company culture.
HR pros are usually the ones crunching the numbers on salaries too. They'll look at things like experience and location to figure out a fair pay range and are often the ones negotiating with candidates to find a number that works for everyone.
2. Employee onboarding
Human resources is in charge of welcoming new employees to an organization. They walk employees through all the basics, including what the company’s about, the perks (including any employee benefit programs), and how things work in the office. They also set new employees up with everything they need to hit the ground running, like computers, email logins, and company cards.
Behind the scenes, HR creates official employee files and deals with any government paperwork and tax forms needed to bring new employees on board.
3. Training and development
HR departments have an invested interest in helping employees grow and develop their skills so they can do their jobs well.
Often, human resources will set up in-office training programs, online webinars, and training apps that employees can access from anywhere. HR also provides resources for external training opportunities, like access to educational courses or conferences where employees can learn and network with others in their field.
4. Performance management
HR teams—along with department managers—help assess employee performance. They’ll set up regular performance reviews where employees and their managers can share feedback and have open discussions about performance, raises, and areas for improvement. In some cases, HR might even step in to provide feedback directly, working closely with employees and organizations to guide their growth and career paths within the company.
5. Worker compensation and benefits administration
Human resources will often oversee employee compensation and employee benefits programs, which include salary structures, bonuses, health insurance, stipends, and retirement plans. A human resources manager will rarely process payroll—that’s typically left to other departments like accounting—but they’ll often own the administrative services around employee raises.
6. Employee relations
HR is there to help with workplace conflicts, grievances, and any concerns employees might have. They support individuals and help resolve disputes between coworkers. The HR team also focuses on creating a positive work environment and making sure everyone follows the company's standards for behavior.
On top of that, HR often works to boost employee morale and productivity. This can include organizing offsite events, team-building activities, office parties, and even handing out holiday gifts or company merchandise.
7. Policy enforcement and compliance
HR teams are in charge of creating and enforcing company policies for a fair and safe workplace. They make sure the organization follows local, state, and national laws regarding equal employment, harassment, discrimination, and workplace safety. To do this effectively, HR needs to stay updated on any new laws that may affect employees and quickly develop policies that comply with these regulations.
“HR’s approach to compliance should always be proactive,” says Michael Franco, Head of People at Don’t Be a Little Pitch. “Regulations are constantly evolving, especially on a global scale. HR professionals need to stay informed and should be subscribed to newsletters from the US government and other regulatory bodies that provide updates on any upcoming changes.”
8. Employee records and data management
HR keeps track of important employee information, including payroll details, personal data, and performance evaluations, to help with different HR processes. When it’s legal and appropriate, HR may share this information with other departments or even with outside vendors, like a 401(k) manager.
9. Organizational development
The HR department often gets involved in strategic planning and organizational development to make sure employees—and their skills—align with the company’s goals and growth strategies. Sometimes, this means tweaking the company’s structure, setting up new departments, or simplifying the organization’s management roles.
10. HR technology implementation
These days, a lot of HR tasks can be managed using software applications. Because of this, HR departments often use technology to handle HR-related data and automate routine administrative tasks. This allows HR managers to focus more on strategic responsibilities, like organizational development and performance management.
“HR systems have also become increasingly useful as any regulatory changes are often updated in the system, but they still should be audited for accuracy,” advises Franco.
Internal vs. external human resources
Companies have a few options when it comes to their organization’s management of HR. They can set up their own HR department in-house and deal with human resource management internally, or they can hire an outside firm to handle HR duties. Some businesses even go for a mix of both approaches.
In this hybrid setup, they might outsource tasks like recruitment, benefits, payroll, compliance, and training to an external company. Meanwhile, they keep other human resource management responsibilities in-house, especially those that require a good understanding of the team. This includes things like evaluating performance, recommending promotions, resolving conflicts, and strategic planning.
This way, companies can get the best of both worlds—expert help for specialized tasks, while still maintaining control over the aspects of human resources that are closely tied to their team and culture.
HR compliance checklist
“Compliance is always a sensitive topic, yet extremely important,” says Ariadna Razaseanu, Senior Talent Acquisition & Strategic HR Business Partner at The Thread.
“It’s sensitive because ensuring compliance sometimes requires making processes more complex and investing additional resources, and important because if not handled carefully, the consequences can be extremely costly. We work with very sensitive data and are involved in decision-making processes.”
When asked what comes to mind when she thinks about HR compliance, Razaseanu says:
“Labor law (which always depends on your location and is not universal), data processing, and privacy. Bear in mind that under the umbrella of labor law fall all matters related to non-discrimination, providing fair and equal opportunities, treatment, etc., making it, in my opinion, extremely complex.”
After speaking to HR pros, here’s a comprehensive compliance checklist that human resources should go through.
Employment basics
- Review and update employment contracts
- Ensure proper employee classification (full-time, part-time, contractor)
- Verify right-to-work documentation
- Maintain accurate employee records
Compensation and benefits
- Comply with minimum wage laws
- Review overtime pay practices
- Ensure equal pay for equal work
- Implement proper payroll procedures
- Offer required employee benefits
Working hours and leave
- Follow working time regulations
- Provide required breaks and rest periods
- Offer statutory annual leave
- Implement policies for various types of leave (sick, maternity, paternity, etc.)
Health and safety
- Conduct regular workplace safety assessments
- Provide necessary safety training
- Maintain and update accident reporting procedures
- Make sure you have the right insurance coverage
Anti-discrimination and equal opportunities
- Abide by all anti-discrimination policies
- Provide diversity and inclusion training
- Practice fair hiring and promotion
- Address accessibility needs for disabled employees
Data protection
- Comply with data protection laws (like GDPR)
- Make sure personal employee data is secure
- Set up and carry out appropriate responses to data breaches
Employee relations
- Create and put in place clear disciplinary and grievance procedures
- Develop an employee handbook
- Set up proper performance review processes
Training and development
- Provide necessary job-related training
- Offer opportunities for professional development
- Keep records of all training provided
Termination and redundancy
- Follow proper procedures for terminations
- Comply with redundancy regulations
- Conduct fair and legal exit interviews
Ongoing compliance
- Stay updated on changing employment laws
- Carry out regular HR audits
- Provide compliance training for managers and employees
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Human resources FAQ
What skills are required to work in HR?
To work in HR, you’ll need a mix of hard and soft skills. Develop strong communication skills to interact with employees and address their concerns effectively. Develop organizational skills and problem-solving abilities to handle conflicts and make strategic hiring decisions. Lastly, aim to be adaptable and have a good understanding of technology so you can thrive in today’s changing HR landscape.
What does a human resources department do?
A human resource department, whether it’s a single person or a large team, is responsible for managing recruitment, employee relations, benefits administration, and compliance with labor laws and company policies. They may also develop strategies for employee engagement and succession planning.
What is human resource management?
Human resource management is the strategic and operational oversight of an organization’s workforce to ensure it effectively contributes to the company’s goals and objectives.
Is it better to outsource my human resources department?
It depends. Outside vendors may specialize in tasks like payroll management and training employees, and they may be cheaper than hiring an in-house HR team. On the other hand, external HR departments do not get to know your workers personally, and they may be ill-equipped to handle workplace disputes or identify leaders within your organization. A combination of in-house and external HR professionals may give you the right balance.
Should I use human resource software?
Human resource software can help you streamline HR processes, improve data accuracy, enhance employee engagement, and lead to more efficient decision-making.
