What is a human resources department?
A human resources department represents the interests of the individual employees and the overall mission of the business. Depending on the size and scope of a company, an HR department can perform a variety of roles and responsibilities. For a small business, a dedicated HR specialist may cover all HR functions, while in bigger companies, specialized departments will handle hiring, benefits, employee development and other processes.
In recent years, the role of HR has expanded as companies recognize that it’s cost-effective to invest in employee development and retention. Better-trained and happier employees are more productive. They also tend to innovate and are more invested in their employers’ success.
Additionally, employers recognize that increased complexity in employment laws make the expertise of HR professionals increasingly valuable.
HR can be an integral player in the success of companies and many incorporate HR professionals and their expertise in critical company decision-making.
Functions of HR departments
An HR department is responsible for:
- Hiring and training
- Payroll and benefits
- Employee development
- Employee relations
- Compliance with labor and tax laws
Hiring and training
HR is responsible for resourcing and recruiting high-quality talent and placing them in the right positions. HR writes job postings, interviews and screens potential candidates and is responsible for onboarding new hires. They create and implement training manuals, employee handbooks and supervise employee development and, sometimes, performance reviews. For most HR departments, the goal is to ensure that all employees have the tools and training they need to perform their jobs effectively.
Related: Onboarding Guide
Payroll and benefits
In many companies, the HR department is responsible for payroll and managing employee benefits. HR ensures accurate reporting of employee hours and that employees are paid on time. They are also responsible for procuring, designing and educating employees on benefits packages. As part of their responsibilities maintaining benefits, they may also manage paid time off.
Employee development
HR is responsible for onboarding, training and development of employees. Their duties can include supervising employee performance reviews and structuring employee development programs that help employees develop skills and their careers through mentorships, cross-training and education.
Employee relations
HR oversees relations between employees and management. They also mediate between employers and employee unions. HR is often responsible for structuring and supervising the escalation process for disciplinary actions.
HR may also be responsible for increasing employee engagement and retention. They may design incentive and recognition programs and perform employee surveys to ensure that employees are satisfied and happy in their work environments.
Related: New Employee Welcome Email Examples
Compliance with labor laws
HR is responsible for enforcing labor laws that protect employees. For example, they may ensure that employees receive the proper break periods and work schedules. They also ensure that hiring and other employment-related practices are not discriminatory. Finally, they may be responsible for investigating all disputes or harassment complaints.
HR department FAQs
Here are some commonly asked questions about HR departments:
How does an HR department affect the company’s culture?
HR can affect the direction of a company’s culture in many ways. Because they focus on employee engagement and recognition, their work is integral to employee satisfaction and retention. Often, their work is executed through programs that directly impact culture, such as training, work-life balance improvement, performance reviews and employee development.
Is the human resource department responsible for employee productivity?
While managers are generally responsible for driving productivity, HR may implement programs to boost and support employee performance, such as employee development, performance reviews, incentive programs and recognition.
Does the human resources department have an influence on the success of the company?
The success of a business is dependent upon its employees. The very function of HR is to ensure that each employee is engaged, enthusiastic, acting with integrity, innovating and performing at their highest levels of productivity.
