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What are the Functions of Human Resources in a company?

Updated: Dec 14, 2022

A company is only as good as its employees. That's why it's important for companies to have a HR department that takes care of basic human resource management tasks, such as recruiting, interviewing, hiring and training new employees.

But what does a human resources department actually do?

Although the duties of HR departments vary from company to company, there are a variety of things they perform on a daily basis for the growth and progress of an organization.

Here are just a few;

1. Workforce planning

Workforce planning is among the most fundamental functions performed by human resources. Workforce planning is an ongoing process of making plans in advance to maximize and optimize your company's most valuable asset - highly skilled employees.

This type of planning can be integrated into organizational, business, or functional strategies for your company to find candidates best suited for an open position, thus avoiding a shortage or surplus of workers in your organization.

2. Hiring and Recruiting

Finding, attracting, and hiring the high-performing employees your company needs to succeed is also one of the responsibilities of the HR department.

Your staff at HR will choose the methods that work best for them to find employees for your company from the various options available, but the hiring process itself is the most important component of this task.

To ensure that your company gets the best candidates, your HR department should be capable of separating the competent candidates from the rest.

3. Onboarding

Onboarding new employees is part of the HR department's job to ensure they can do their job correctly and feel comfortable doing it.

Effective communication is critical to a smooth onboarding process that begins before the new team member's first day on the job.

Stay in touch with the candidate after they have been hired so they feel valued right from the start. Make sure they have everything they need to be successful, introduce them to the team and help them get the proper training.

4. Manage the workforce

Managing the workforce is one of the most important roles of the HR department in any organization.

Workforce management is a collection of integrated procedures and techniques to monitor and increase employee productivity. These include scheduling, timekeeping, forecasting, real-time management, budgeting, and performance management.

With a successful workforce management program, you can gain control over areas of your business that you previously thought were out of your control.

5. On-the-job training

On-the-job training offers several benefits that your company will not find anywhere else. Ultimately, your team members will provide better service to your customers as they will be more competent and efficient compared to external trainers.

Thanks to an ongoing and effective training program, there will be fewer mistakes and your company's operations will be much smoother.

Your HR department is responsible for making this on-the-job training a reality and ensuring that every employee gets the training they need to do their best work.

6. Employee Recognition

Recognizing and rewarding your employees' accomplishments is an important HR function that is essential to your team's morale and engagement. Companies that recognize the value of their employees and want to retain top talent have recognition and rewards on the top of their agenda.

Rewards and recognition make employees feel their efforts are appreciated, which is the best kind of motivation.

Unfortunately, employee appreciation has a reputation for being difficult and expensive. But with the right attitude and a little ingenuity, your HR Department can come up with incentives that everyone will be satisfied with and that will not break the budget, such as: Treats, snacks, a new coffee machine, or an interesting break room.

If you have a slightly more flexible budget, rewards could be a sponsored vacation, a raise, a bonus, or performance-based compensation.

A promotion, job stability, professional development opportunities, a positive work environment, awards for special achievements, and establishing credibility within the company are all components that lead to an effective recognition program.

7. Employee Satisfaction

The extent to which your employees are satisfied or happy with their jobs, tasks, work environment, company culture and leadership is referred to as employee satisfaction.

Measuring and maintaining or improving employee satisfaction is another task that has been added to the list of Human Resources responsibilities.

A regular employee satisfaction survey is one of the easiest ways to find out how your team feels about their work. It is possible to increase employee satisfaction in your company by asking questions like, "How meaningful is your work?" "Do you feel connected to your colleagues?" "Do you have the tools and technology you need?"

8. Employee Relations

Maintaining a positive employee-employer relationship is one of your HR department's most important responsibilities. Your organization can benefit from higher productivity, stronger employee loyalty and more effective conflict resolution when a healthy relationship exists.

The employee-employer relationship is influenced by a number of factors, including a diverse team, regularity of performance reviews, implementation of a fair HR policy for all, employee grievance procedures, and employee development plans, to name a few.

These variables become an important part of your business, and help build a company culture where employees feel safe and productive.

9. Labor Law Compliance

The rules and laws that govern labor and workplace vary from state to state, county to county, and even city to city.

Labor law compliance is one of the most difficult tasks of your HR department. The problem is that violations of these regulations and laws can cost your company a lot of money in fines and possibly legal action.

It is important that your HR department takes all the necessary steps to ensure that your employees and your business are in compliance with labor laws.

10. Succession Planning

Succession planning, as a function of HR, is an effort to track and manage an existing employee's career path for internal advancement.

Within an organization, companies can identify talented and potential employees and attempt to pave the way for their advancement. Employees who are convinced of the company's potential for a positive work environment will not quit.

Companies should establish personal development plans and engage employees in challenging activities that prepare them for a better position.

A proactive strategy to find the best replacement for an existing authority who may soon leave is succession planning. The unexpected or unanticipated loss of a key employee can be damaging to the organization. It’s better your HR have strategies to replace the key staff in case of these situations.

11. Compensation and Benefits Administration

The HR department is responsible for administering compensation and benefits in a company. This includes creating pay scales, administering payroll, and providing benefits to employees.

To ensure that the company's employees are compensated fairly and receive the best possible benefits, the HR department must keep abreast of industry trends and developments.

It must also be familiar with government regulations governing compensation and benefits. By working closely with the management team, the HR department can help create a compensation and benefits package that attracts and retains top talent.


Human Resources are responsible for a variety of important functions within an organization. From recruiting and interviewing new employees to ensuring that employees are treated fairly and in compliance with the law, the HR professionals play an important role in the smooth running of a company.

If you want to pursue a career that is essential to the success of a business, you may consider a degree or certification in human resource management. Let us know what you think in the comments.


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