What is Human Resources? (2024 Guide)

A company&#;s human resources (HR) department is responsible for talent management and ensuring compliance with employment laws. The first use of the term &#;human resources&#; dates back to the s. As employers began to see the importance of employee satisfaction to the work environment, human resources management gradually became a mainstay in the workplace.

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As the name suggests, human resources is also a word for a company&#;s most vital asset: its employees. However, people typically use it to refer to the department itself. The HR department deals with every part of a business that involves employees.

In this article, we at the MarketWatch Guides team take a closer look at the role of HR in the modern workplace. We&#;ll explore what the department does and what a job in human resources looks like.

What Is Human Resources?

The principal purpose of human resources is managing a business&#;s workforce. They see employees through every phase of their employment, from the hiring process to training to offboarding. As a result, the HR department has a wide range of duties.

HR oversees a company&#;s staffing efforts, like job listings and screening resumes. Hiring managers are usually responsible for interviews and final hiring decisions, while HR handles the onboarding of new hires. HR may also provide employee training or oversee training programs.

Once an employee completes onboarding and training, human resources maintain an acceptable workplace culture. They address employee concerns and handle day-to-day issues like employee benefits. When it&#;s time for an employee to move on to a new employer, HR also oversees the offboarding process.

Key HR Roles and Responsibilities

HR professionals have several important functions within an organization, as they shape the employee experience from start to finish. The department acts as a liaison between employees and managers, ensuring both uphold their part in the workplace.

The responsibilities of HR may include:

• Recruiting and hiring:

  Creating job listings and screening applications

• New employee onboarding:

  Issuing new hire paperwork and integrating new employees into the system

• Training and development:

  Developing and administering training programs, including ongoing training initiatives

• Payroll and compensation:

  Ensuring accurate and timely employee compensation and addressing employee concerns about payroll

• Benefits administration:

  Handling employee benefits like health, dental and retirement plans

• Performance management:

  Evaluating employee competencies and providing feedback

• Employee relations:

  Fostering a healthy and ethical work environment

• Regulatory compliance:

  Ensuring compliance with the company&#;s code of conduct as well as employment laws

• Workplace safety:

  Maintaining a safe work environment for employees and compliance with

  OSHA requirements

• Organizational development:

  Providing continual learning and professional development opportunities

HR Compliance

Not only does compliance with labor laws keep employees protected, but it also reduces legal risks for the employer. Human resources is responsible for ensuring employers adhere to internal policies as well as state and federal regulations. To ensure compliance, HR professionals have to be well-versed in employment laws and company policy. Violations of employment laws can lead to costly litigation, so HR departments act as a proactive safeguard, preventing violations before they happen.

Beyond preventing legal action, the human resources department also ensures employees and managers abide by company policy. The department may field complaints about inappropriate behavior or discrimination. They also ensure employees&#; rights are protected. HR oversees hiring and offboarding processes, ensuring that the company doesn&#;t violate equal employment opportunity regulations.

Organizational Development

Another essential aspect of human resources management is maintaining a positive workplace environment through professional development. Organizational development initiatives might include:

• Employee workshops

• Diversity, equity and inclusion initiatives

• Wellness programs

• Department restructuring

Organizational development can happen at the individual level, with a mentor coaching a single employee. It can also involve one or more entire departments, as with a group masterclass. Organizational development can improve retention and employee engagement when implemented effectively.

HR Job Descriptions

A human resources department covers a broad scope of specific job titles with varying levels of seniority. Smaller businesses may have just one HR professional, while larger organizations may have an entire department of employees. Common types of HR professionals include:

• HR Manager:

  Oversees a team of HR professionals

• Recruiter:

  Manages the hiring process, from screening candidates to onboarding new hires

• HR Director:

  Manages employee relations and compensation and ensures compliance

• HR Coordinator or Generalist:

  Handles general HR duties, including company policy creation and employee relations

• HR Information Specialist:

  Works with the IT department to manage recruiting software and benefits portal
  

  
  

Talent Acquisition

The human resources team also oversees the talent acquisition process. HR ensures that job listings accurately represent the job duties and requirements. The department is often involved in the screening process, though either an HR professional or a hiring manager may schedule and conduct interviews.

Any assessments or background checks applicants must undergo are typically the responsibility of HR. When an employee completes all the screening requirements, human resources is the department that extends job offers. Once the candidate accepts the position, HR manages the onboarding process.

HR Skills and Qualifications

As a people-oriented department, human resources professionals need strong interpersonal skills and technical qualifications. Examples of skills an HR professional should have include:

• Communication

• Empathy

• Conflict resolution

• Organization

• Collaboration

• Analytical thinking

• Emotional intelligence

• Critical thinking

• Data entry and typing

Most human resources roles require at least an undergraduate degree. Although positions may require a degree in human resources, many roles may accept candidates with degrees in related fields or who have relevant work experience. Senior positions like the HR Director may require higher degrees. An HR certificate program is another way to qualify for an entry-level role.

Daily HR Duties

HR is a dynamic role with a broad scope of duties depending on the needs of the organization. As such, tasks may vary widely from day to day. On a given day, a human resources professional may do any of the following:

• Screening applicants:

  Reviewing applications and resumes and scheduling interviews

• Onboarding new hires:

  Extending job offers, training and entering new hire data into company software

• Addressing employee questions:

  Fielding inquiries related to employees&#; positions

• Processing payroll:

  Withholding deductions, distributing payment and pay stubs

• Offering managers guidance:

  Advising managers on best practices for compliance

• Investigating reports of inappropriate behaviour:

  Assessing employee complaints and determining the best course of action

• Documenting and reporting policy violations:

  Taking formal disciplinary action

• Employee recognition:

  Developing employee recognition programs to improve engagement and retention

• Conflict resolution:

  Mediating conflicts between team members

The human resources department protects employees from mistreatment. Their efforts directly affect the experience of the employee. Beyond fostering employee retention, the daily activities of HR contribute to the overall success of a company&#;s workforce.

Offboarding

In addition to onboarding new hires, human resources oversees the offboarding process. The department handles resignations, terminations and layoffs. Offboarding can include exit interviews, managing workforce reductions and severance packages. In the offboarding process, the role of HR is to ensure a positive transition for employees and management.

The purpose of exit interviews is to determine why an employee leaves. The insights gained from exit interviews can help inform organizational changes to prevent further turnover. In some cases, positions get eliminated due to downsizing or other factors, and HR must reassign the duties of the eliminated position.

HR Strategic Planning

Human resources is a strategic partner of the management team. HR professionals help leadership develop talent strategies. They also ensure that strategies align with the goals of the business. Strategic HR planning initiatives can leverage technology to optimize human resource management.

Beyond the operational functions of hiring and firing, HR has evolved to include working with management to develop policies, retention and professional development. Leadership determines the company&#;s goals, while HR determines what actions managers should take to achieve those goals.

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The human resources department might advise on how many employees to hire for growth. They research the job market to determine what salary and benefits packages will attract the best candidates. To develop an actionable and effective talent strategy, the process needs to involve multiple departments.

The Bottom Line

Human resources professionals are responsible for a range of people-focused duties. They handle every aspect of an organization that relates to its workforce. From hiring to offboarding, human resources is the link between a company&#;s employees and leadership. The department also manages important functions like DEI initiatives and continual learning.

The HR department oversees how a company attracts, develops and retains the best talent. They spearhead organizational development initiatives and ensure compliance and safety in the workplace. When an employee has a concern, HR is responsible for employees feeling heard and understood. All the efforts of human resources contribute to retention efforts and employee engagement.

For HR to be effective, there has to be a strong relationship between the department and talent management. The department works closely with management to develop a talent strategy that aligns with business goals like growth, innovation and a positive company culture. With a robust and qualified human resources department, companies can ensure their employees thrive and management maintains compliance.

Frequently Asked Questions

Human resources is the department of a business that deals with anything relating to employees. The HR department handles recruiting, assessing and onboarding job applicants and new hires and managing payroll and benefits.

Human resources is responsible for every stage of an employee&#;s time with a business. The department is involved in the recruiting process, screening candidates, onboarding, training new hires and offboarding employees. HR also ensures the safety of employees by maintaining compliance. Employees can bring concerns about compensation and benefits to an HR professional.

HR departments manage a wide range of tasks. In addition to creating job listings and screening candidates, the department manages the professional development of employees. Human resources professionals organize training and DEI initiatives. They also administer payroll and benefits. One of HR&#;s most important functions is maintaining a safe and compliant work environment. They work with leadership to plan talent strategies that benefit the business.

The job description of an HR professional can vary by industry and specific job title. Generally, someone who works in human resources manages aspects of the company relating to employees. HR handles recruiting, training and professional development. They deal with payroll and benefits, as well as keeping the organization in compliance with employment laws.

In the context of a business, the term &#;human resources&#; typically refers to the department that manages a company&#;s employee relations. The resource itself is the employee within the organization. A company&#;s workforce is its most important resource.

Most entry-level HR positions require at least a bachelor&#;s degree. Human resources professionals come from a variety of academic backgrounds, including business and management, but other related degrees are often suitable. Higher degrees and completing an HR certificate program can also be beneficial. To be successful in the field of HR, professionals need good interpersonal skills and emotional intelligence. They should be comfortable interacting with people and resolving conflict.

Even more important than a company&#;s recruiting efforts is retention. The most important function of the human resources department is ensuring employees are engaged in their positions. Replacing an employee is far more costly than making efforts to retain your best talent. Through professional development initiatives and internal surveys, human resources departments can make efforts to improve retention.

HR is responsible for payroll, though some companies also have a finance department. The human resources department manages both compensation and benefits. HR professionals carry out payroll tasks like deductions and distributing pay stubs. When employees have questions or concerns regarding their pay or benefits, the HR representative typically fields these inquiries.

A human resource department is the division of a company that is responsible for effectively managing a company's human resources, which are its employees.

Learn more about what a human resource department does and what sorts of roles an employee there may occupy.

What Is a Human Resource Department?

A company's human resource department is tasked with the training and development of its workers, who are considered some of the company's most important resources.

Also known as human resources (HR), the human resource department's mission is to make sure the company's employees are adequately managed, appropriately compensated, and effectively trained. The department is also responsible for recruiting, hiring, firing, and administering benefits.

How Does a Human Resource Department Work?

A human resource department is involved with making sure the company has a solid roster of employees, who are trained to fulfill their roles and compensated appropriately for doing so.

The human resource department provides effective policies, procedures, and people-friendly guidelines and support. Additionally, the human resource function serves to make sure that the company's mission, vision, and values are part of the company culture.

Note

Sometimes, some of the human resource department's responsibilities may be outsourced, such as payroll administration. This leaves the department more time for focusing on higher-level functions, such as organizational development or hiring strategy.

Recruiting

Locating and recruiting promising candidates is one objective of a human resource department, which uses the company's business goals to guide the recruiting process. They usually evaluate the job which they are hiring for to identify key responsibilities and desired qualifications before writing job descriptions and placing job postings. They funnel qualified candidates to the company and shepherd the candidates along the hiring process, fielding resumes and conducting interviews.

Hiring

The human resource department extends offers to qualified candidates and negotiates pay and benefits. Making the right hire is a crucial responsibility of the human resource department because of how important a company's employees are to its success. Good hires improve business outcomes and efficiency, so careful vetting of each job candidate, including background checks, is essential.

When the candidate accepts, the human resource department is in charge of the new employee onboarding process.

Administration

Once hired, an employee can expect to deal with the human resource department on all manner of administrative tasks, from filling out required paperwork (such as a Form I-9) to navigating employee work schedules.

Note

The human resource department mediates disputes between employees or take care of disciplinary concerns. The department should also ensure that the company is in compliance with all applicable laws regarding hiring and employment.&#;&#;

Compensation

The human resource department also is usually in charge of overseeing compensation, including salary or wages and benefits such as paid vacation or health insurance. Ensuring adequate and timely compensation is important for keeping employees satisfied.

The human resource department is there to answer questions an employee may have about their health benefits, vacation time, tax withholdings, or other concerns.

Training

In order to maximize a staff's productivity, training is usually in order, which is organized by the human resource department. The department may perform the training in-house or it may be hired out to professionals. The department will also work to make sure that employee certifications or licenses are up-to-date and may even arrange for higher education or course reimbursement.

Development

The human resource department also is in charge of employee development, which may involve training but which may also focus on succession planning and career development. Preparing certain employees for promotions and advanced roles is part of the responsibility of a human resource department.

Firing

Finally, on the occasions when an employee just doesn't work out, the human resource department is responsible for managing firings. As part of this, they may conduct exit interviews and arrange for the employee's last paycheck to be delivered.

Types of Human Resource Department Careers

There are many different jobs that can be part of a human resource department. These roles range from general work to leadership or managerial roles, and can include:

• Human resource assistant
• Human resource generalist
• Human resource manager
• Human resource director
• Vice President of HR

Additionally, HR departments in larger organizations have employees who are organized around providing a specific component of human resource services, such as organization development or safety. They have titles such as training manager, organization development consultant, or safety coordinator.

Key Takeaways

• A human resource department manages a company's human resources, otherwise known as its employees.
• The human resource department is responsible for the effective hiring, training, developing, compensating, and management of these employees.
• Larger human resource departments may have subdivisions within them that are organized around specific components of the department's responsibilities.
• Find out the answers to frequently asked questions about HR.

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