9 Key Core HR Functions in a Company and their Importance

HR is such an extensive department in the company. The department helps employees with all the questions they might have and provides them with information about the company and its policies. But, the department also deals with the essential things for the company and the employees. There are critical Core HR functions that can positively affect the company. HR professionals manage all aspects of the company’s human resources. HR is a multifaceted function responsible for recruiting, promoting, and retaining employees and overseeing employee relations, training, development, and compensation.

It is one of the essential departments in the company. It is responsible for ensuring that the company is kept compliant with all government regulations and for constantly ensuring that it operates correctly and safely.

Let’s discuss each of the critical functions briefly.

HR Planning

Proper planning is an essential part of any business as it allows you to set realistic goals for your business. The same applies to the human resources in your company. You should plan the activities and role of HR management in your company. You should devise a clear HR strategy to achieve the goals of your business and should analyze the challenges you need to address.

These challenges could be globalization, recessions, employee attrition, changes in laws, etc. Planning can help your business eliminate any confusion in the future and ensure the smooth functioning of your business.

Recruitment Management

Hiring is an unavoidable process for a business as it is essential to recruit employees. Proper recruitment planning helps you build an effective workforce for your business. 

The function of the HR team includes finding the exact requirement for your business and publishing the needs to various platforms to attract suitable candidates for the role. Also, they have to collect the applications, screen them, schedule interviews, and select the candidate who is the best match for the business.

Performance Management

Employee performance management helps your business to enhance the performance of your employees. HR managers should have a proven system to set goals for each employee and track their performance. They can schedule performance reviews to ensure your employees are on the same page with your business.

To effectively manage employee performance, the HR team can use Artify 360 HRMS software which has a performance management system. It helps you track the performance of your employees and take enough steps to enhance their performance.

Employee Training

Training your employees helps them prepare for whatever challenges they face in their work. It can improve their productivity and help them deliver excellent business solutions. The HR team is responsible for identifying the training needs of your employees, personalizing them, and arranging proper training sessions. The HR team should make sure their employees are getting value from the training they implement.

Appraisal Management

The HR team must find growth opportunities for your employees and help them grow. Providing enough appraisals are a crucial way to enhance the loyalty of your employees in your company. It allows your employees to be happy and satisfied with their work. The HR managers should ensure all your employees are compensated fairly well, or else they will jump to the next opportunity they get.

Policy Formulation:

The HR team is responsible for the legal compliance of a business. We should formulate the necessary policies to ensure legal compliance in your business. Some essential procedures include a leave policy, privacy policy, etc. The HR team should monitor whether these policies are followed effectively in the organization.

Employee Engagement

Employee engagement is a rising concern in the modern era where work-from-home culture prevails. Proper employee management will help your employees be more satisfied with their work and help them build a connection with your company. The HR team should initiate activities and efforts to enhance employee engagement. HR teams can use feedback from employees to create valuable employee engagement activities.

Health and Safety

A good business always emphasizes the health and safety of its employees. You should not loot the health and wellness of your employees for your revenue. The HR department should take necessary steps to enhance every employee’s health and mental well-being. Again employee feedback plays a significant role here. You can arrange for health insurance, hybrid work culture, paid leave offs, team outings, etc., for your employees.

Growth and Succession planning

A good HR manager will realize each employee’s career development needs. Proper succession planning will help your business to identify the next potential leaders within the company and help them excel in their roles. Companies that have selected leaders within the company have reached greater heights.

These are the core HR functions in a business that needs a proper system to assist the HR team. Artify 360 HRMS simplifies a company’s core HR tasks and accelerates your organization’s growth.

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