Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
The HR industry is constantly evolving. As a sector with a number of core responsibilities, HR teams are the functional heart of a business, spotting, recruiting, and maintaining talent that keeps the in-house cogs turning.
In fact, a whopping 82% of global leaders agree that making space for a dedicated HR team is more critical now than ever.
The question is, how can you optimize your business’s HR management? We’ve put together a list of seven crucial roles performed by a successful HR team and how to integrate them into your own human resource management strategy.
In a business, the role of HRM or human resource management upholds procedures, guidelines, and frameworks that promote worker development and productivity. An HR Team acts as a bridge between the company and the employees, making sure that both parties communicate effectively, and work in harmony.
At its core, here are some of the roles of HRM teams you can expect them to perform:
The role of human resource management guarantees that the organization has the appropriate personnel, resources, and regulations in place to accomplish its main goals according to each position.
In light of this, let’s examine these essential roles of human resource management in further detail and how each leads to the success of your enterprise.
A strategic role of human resource management that you expect them to perform with great efficiency is the talent acquisition and management.
The talent management team is responsible for spotting, hiring, and looking after employees in order to maintain a strong company workforce.
Working as recruiters, the role of talent management requires HR specialists to obtain a number of hard and soft skills, such as data management and an exceedingly powerful attention to detail.
Recruiting the finest personnel for a position requires talent managers to be intimately familiar with their organization. To detect any skill gaps in the organization and create job descriptions that appeal to the best applicants, they frequently collaborate with internal recruiting managers and individual teams.
On the flip side, talent management also refers to maintaining, redistributing, and replacing talent as the company grows. In other words, talent managers must be prepared for any employee to leave the business at any time. Whether this is sick leave, retirements, or a notice hand-in, it’s up to the HR team to conduct workforce success planning for a smooth transition.
Every business must abide by a set of industry laws and policies, and it’s HR’s job to enforce this.
Not only are human resource management teams responsible for maintaining company legacy compliance, but they are also in charge of writing and implementing some of the company-specific policies themselves.
Introducing company policies is crucial if you want to maintain a successful workforce. Educating staff members on legacy compliance ensures that employees know exactly where they stand within the company and can conform effectively.
Some specific tasks assigned to legal compliance teams are investigating policy violations, monitoring employees, creating new policies, conducting legal compliance training, and tracking online performance.
Training and development in HRM play an extremely important role. In fact, 64% of HR leaders claim that developing team effectiveness through training is their number one strategy for HR success in 2024.
On top of this, upskilling employees in HR tech also remains a top priority for more than half of businesses across the globe, especially in the wake of post-COVID digital innovations such as remote working and AI-powered assistance.
It’s up to the HR team to lead training sessions and help their employees thrive. These sessions include on-the-job training, eLearning schemes, personalized learning programs, and reskilling sessions on new technologies.
In order to track these training efforts, HR teams also conduct regular performance reviews and provide employees with beneficial feedback on their progression. By tracking performance margins, HR specialists can identify which teams require more support and can create customizable learning programs for employees to follow and develop their skills.
While this is a relatively new role for human resource management teams, mastering analytics technology has become a crucial feature of the job, especially if you plan to automate your business in 2025.
Technology literacy allows an HR team to leverage employee information systems and AI-powered performance reports to help automate administrative tasks and collect strategic insights with ease.
With the ability to leverage performance insights in seconds, using AI-powered tools could cut the time it takes to map workforce productivity trends in half. This allows HRM teams to pour more focus into supporting any employees falling below the net.
Providing a safe work environment for all employees is essential. When it comes to workplace wellness, the office must be convenient, ergonomic for desk workers, free of hazards related to machines, and, most importantly, a pleasant place to be, promoting diversity and inclusivity for all employees.
The HR team also ensures that all employees do not let the work pressure disturb their mental health and utilize their holidays to relax and revitalize their energy. More significantly, according to “The Occupational Safety and Health Act of 1970 (OSHA),” all companies are required to keep their workplaces safe to continue operating.
Therefore, it’s no surprise that workplace safety is a big responsibility for the HRM team.
Those in charge of maintaining workplace safety are required to educate employees on safety regulations, facilitate 1-1 safety training, and actively log any workplace incidents ranging from a cut finger to a mental health crisis.
Safety specialists also work closely with relevant government officials and benefits schemes and are responsible for managing employee compensation insurance.
Workplace well-being is another facet of workplace safety management that your HRM team shouldn’t neglect because every employee’s well-being matters and is imperative to the success of your business.
HRM teams are responsible for conducting regular well-being workshops, 1-1 support for struggling staff members, and re-integration pathways for those re-introducing work after sick leave.
Compensation management is an important role associated with the HRM team. Managing employee compensation includes determining individual salaries, appropriate benefits, and any other payroll add-ons such as paid leave, health insurance, or pension.
Depending on the department or an employee’s role within the company, the process of determining payroll compensation differs. Each employee works for the company with individual benefits packages, salaries, and add-ons. Therefore, it’s crucial that each and every payroll is accurately adjusted to accommodate every employee on the books.
Benefits and compensation management also includes preparation for unexpected absences such as pregnancy, sickness, or retirement. If an employee unexpectedly leaves the team, HR managers not only have to compensate them effectively but also ensure that the rest of the team receives an updated payroll with the benefits they’re entitled to.
To do this, HRM teams will conduct regular benefits audits and use payroll software to map any employee compensation changes and ensure that payroll processing is both accurate and on time.
Last but not least, a large number of HRM teams collaborate with third-party EOR companies to maximize their workload capacity and offload a number of administrative tasks.
A third-party human resource management firm that may manage the employment aspect of HR is called an Employer of Record (EOR). This includes handling tax compliance and labor laws in many nations and authorities, processing payroll, and hiring new employees.
Better still, if you’re running a global business, EOR services streamline worldwide talent hiring.
While EOR services do not manage employee wellbeing, safety, and training, they can take the pressure off of HR teams, allowing them to be more present as a workforce support system.
When it comes to collaborating, it’s an HR manager’s responsibility to maintain strong communication and coordination between in-house HR teams and third-party EOR services.
It is quite evident that the human resources sector is changing quickly. As 2025 approaches, HRM teams should anticipate that technological breakthroughs and constantly changing workplace dynamics will disrupt their roles and duties.
One of the biggest changes we can anticipate in the future is the incorporation of smart technologies such as artificial intelligence (AI) and machine learning. The role of artificial intelligence in human resource management is transformative, as it enhances efficiency, improves decision-making, and automates repetitive tasks such as recruitment, employee onboarding, performance analysis, and training. Nevertheless, the human touch will continue to remain constant as teams handle the tools to enhance their performance and efficiency.
The HR specialist’s profession will also continue to be reinvented by remote and hybrid working settings. Finding strategies to offer assistance and integrate well-being management into remote employment will be necessary for success, as employee experience remains a top priority for individuals starting their careers.
Without a doubt, roles related to human resource management will keep on developing. However, the HR teams that prioritize their workers while maintaining the correct balance between the company’s management and employees will succeed in this sector that is shifting quickly.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.