Human Resources (HR): What Is It And What Is It For?

Human resources (HR) refers to the collective individuals who form an organization’s workforce. While it encompasses a range of sectors including nonprofit and governmental organizations, it is primarily associated with corporate environments.

Although some companies distribute HR responsibilities across various departments instead of maintaining a dedicated HR team, human resource departments are fundamentally people-oriented, focused on fostering a thriving environment for both employees and employers.

This article provides a comprehensive overview of human resources, detailing its functions, the roles available, and how HR can be beneficial to you.

Key Takeaways:

• Human resources consists of individuals who make up a company’s workforce, with the HR department responsible for managing all aspects related to human capital.

• Recognizing that a company’s workforce is its most valuable asset, HR must deliver essential services that support both organizational goals and employee well-being.

• HR services include recruitment, onboarding, training, compensation and benefits administration, and employee protection.

• While HR advocates for employees, its primary obligation is to the organization and to maintaining a healthy relationship between the workforce and the company.

What Is Human Resource?

The term “human resource” refers to the individuals constituting an organization’s workforce. While it may seem unusual to refer to people as a resource, this perspective encourages companies to adopt effective management strategies for their employees.

An organization’s human capital—encompassing the knowledge, skills, and labor of its workers—is its most crucial asset. Given the complexity of human behavior, a specialized approach to managing this asset is vital for the smooth operation of any business.

An HR department handles all matters related to an organization’s human capital. This department may be referred to as human resource management, human capital management, or may adopt other terms like “people,” “employee,” or “talent management.”

HR is responsible for creating and managing programs that pertain to employee recruitment, training, retention, compensation, and professional relations, as well as shaping the overall company culture.

Key Functions of Human Resources

The primary role of HR involves managing people, overseeing pay structures, and facilitating training programs. Below are some critical functions:

1. Recruitment. This process includes defining staffing policies, sourcing candidates, conducting interviews, and ultimately hiring employees.

2. Onboarding. This involves integrating new hires into the organization, equipping them with the resources, skills, and knowledge necessary to excel in their roles.

3. Training. HR departments administer training and career development programs that empower employees to acquire new skills, enhance existing ones, and maintain motivation. These initiatives promote personal and professional growth, fostering a positive workplace culture.

4. Developing employment policies. HR is responsible for creating and updating workplace policies that guide employee conduct, dress codes, and business objectives.

5. Administering compensation and benefits. HR ensures that employee compensation is equitable and competitive within the industry, minimizing turnover and attracting top talent.

6. Organization development. Promoting effective organizational change and enhancing performance is a vital responsibility of HR, as organizational structures significantly influence human capital.

7. Retaining workers. High turnover rates signal potential issues within an organization. Retaining employees is crucial, as companies want to capitalize on their investments in workforce development.

8. Protecting workers. HR ensures that employees’ rights are safeguarded within the workplace, adhering to legal requirements and providing a support system for grievances.

9. Maintaining a healthy work environment. HR plays a key role in enhancing morale and company culture, resolving conflicts, promoting diversity, and leveraging employee feedback to create an ideal workspace.

Internal vs. External Human Resources

For some organizations, particularly smaller ones, HR functions may be divided between internal and external resources. A company may opt to outsource specific HR tasks based on its needs.

The distinctions are as follows:

• External human resources. These typically cover administrative HR functions such as recruitment, onboarding, payroll, benefit administration, and compliance with labor laws.

• Internal human resources. Even with some functions outsourced, an internal HR department is essential for policy design and providing employee support.

If you work in an organization with both internal and external HR departments, ensure you know whom to contact for different HR-related needs.

Why Does a Company Need to Have Human Resources?

The fundamental purpose of HR is to address human-centric issues within the organization with a specialized approach.

Companies require HR to ensure that all policies, programs, and practices affecting employees are optimized to foster a positive work environment and enhance employee performance.

HR professionals devise strategies for recruitment aimed at attracting and retaining valuable talent. They also facilitate smooth onboarding processes to help new employees acclimate quickly.

HR addresses employee concerns, ensuring that their voices are heard and that the workplace remains healthy and positive. They mediate conflicts among employees or between employees and management, which is vital for maintaining good morale.

Moreover, HR oversees separation processes, ensuring that terminations are handled smoothly and professionally.

How Can This Department Help You as an Employee?

HR serves as a vital resource for employees, ensuring that their concerns are heard and addressed:

• Filing complaints/concerns. Should you face discrimination, harassment, or other unlawful conduct, HR is obligated to take your concerns seriously and conduct investigations on your behalf, ensuring anonymity for whistleblowers.

• Disability accommodations. If you require accommodations due to a disability or need to utilize protections under laws like the Family Medical Leave Act, HR is available to assist you.

• Benefits and payroll administration. HR manages benefits and payroll, making it the go-to department for inquiries regarding health insurance, salary, or other workplace policies. They will address your concerns and follow up on resolutions.

• Career path assistance. Depending on the structure of your company’s HR, you may receive guidance in your career development or assistance in creating a long-term career plan, as it is in their interest to help you succeed.

However, keep in mind that HR’s primary obligation is to the organization. They are inclined to assist you as long as your interests align with company goals. For example, if you are considering a career change, it may be best to approach HR with discretion.

What Is the Importance of Human Resource?

Human resources, referring to a company’s workforce, is a critical component of organizational success. Without the skills, creativity, and labor of individuals, progress stagnates. Although automation continues to transform workplaces, the need for human capital remains undeniable.

The objective of HR departments is to attract and protect workers, treating them as a company’s most valuable resource. They strive to create optimal work environments by implementing essential human-centered policies, processes, and innovations.

HR also plays a crucial role in maximizing employee potential. By identifying individuals’ strengths and weaknesses, HR can strategically structure organizations to leverage employee skills and address areas for improvement.

Through well-designed workplace policies, programs, and training, HR significantly influences a company’s culture. A poorly functioning HR department can damage a company’s reputation and create a toxic work environment. This makes a competent, ethical, and well-trained HR team essential.

List of Human Resources Jobs

Here is a list of common human resource job positions that a company might have:

• Staffing Coordinator. Responsible for organizing and scheduling employees based on the required staffing levels for each shift.

• Recruiter. Identifies candidates for open positions and negotiates their needs with the organization’s requirements.

• Staffing Manager. Oversees all staffing-related functions, including recruiting, training, and retention strategies.

• HR Assistant. Supports HR managers with various administrative and HR-related duties.

• HR Associate. Maintains HR records, verifies employee backgrounds, and explains HR programs to staff.

• HR Intern. An entry-level position assisting with various HR tasks and learning about HR practices.

• HR Analyst. Evaluates and analyzes HR policies and programs to ensure alignment with organizational goals.

• HR Generalist. Manages the daily operations of HR departments.

• HR Specialist. Assists in recruiting, hiring, and onboarding employees.

• HR Coordinator. Ensures compliance with HR policies and regulations, acting as a liaison for employees.

• HR Manager. Oversees the administrative functions and strategic direction of the HR department.

• HR Director. Supervises HR operations and collaborates with management to ensure efficiency.

• Talent Acquisition Specialist. Focuses on sourcing and hiring skilled workers for the organization.

• Talent Management Specialist. Works on strategies to find and retain top talent.

• Chief Human Resources Officer (CHRO). Develops and implements the overall HR strategy in alignment with company goals.

• Benefits Administrator. Manages employee benefits, including health insurance and workers’ compensation.

• Safety Manager. Develops and updates safety policies and regulations within the organization.

Author

Lilly Chesser

Lilia Chesser is a professional copywriter and content writer based in Columbus, Ohio. She graduated from Denison University with a BA in communications.