Employees are the most essential part of any organization. Depending on their performance, employees can be both liabilities and assets for a company. To evaluate employees, an efficient HR department is necessary for organizations of all sizes. The HR professionals look after the overall organization and employees to ensure a smooth process. Undoubtedly, HR professionals understand the basics of human resource management; however, while looking after the organization at the macro level, we sometimes sideline the basics of HRM. Isn’t it?
For HR professionals who are starting their career new or who have already been working in the field for years, here is a quick revision guide that explains seven human resource management basics that you should know.
But before we jump directly to understand what are the 7 HR processes, let us understand the HR fundamentals first.
What is Human Resources?
Human Resources is an important pillar of any successful organization. It is often referred to as the “people department.” HR serves a critical role in creating a positive work environment, attracting top talent, and ensuring the smooth operation of the entire company. The HR fundamentals encompass a broad range of activities, from strategic recruitment and onboarding of new hires to managing employee relations, compensation, and professional development. By effectively dealing with these HR fundamentals, businesses can empower their workforce, optimize performance, and achieve their strategic goals.
What is Human Resource Management?
The Human Resource management process consists of recruiting, employing, deploying, and, most importantly, caring for the organization’s human assets. In other words, it is the practice of managing people to accomplish better performance.
The Human Resource Management team is largely responsible for enhancing the company’s performance through efficient management of human resources.
Human Resource management can be done within the company if you have HR on board, or you can outsource your HR management to a reliable HR consultant like Prompt Personnel. With expertise and experience, the professionals help you hire candidates for contract staffing and permanent staffing, helping you manage your human resources smoothly.
What Are The 7 HR Processes?
1. Recruiting & Selection
This is one of the most important and basic of HR duties that every HR professional carries out. They are responsible for recruiting and selecting the best individuals to work for the company. The HR department receives the request from the manager when the existing job position opens, or a new job opening is created. A job description for the same is given, and the hiring process is initiated by the HR professionals. In this process of hiring, HR uses different software like an applicant tracking system and different recruiting portals like Naukri, indeed, LinkedIn, etc. The process includes interviews, different assessments, reference checks, negotiation, and various other aspects. They conduct different levels of interviews for candidates before they are onboard.
2. Performance Management
A performance management system is a structure that permits employees to get feedback on their conduct and optimize and improve simultaneously. Performance can be measured using various parameters depending on the work profile. In the annual performance management cycle, companies plan, monitor, review, and reward employees based on their performance. The direct manager and HR are involved in analyzing and evaluating employees’ performance. Depending on the employee’s performance, the company decides if the employee is a good fit for the organization.
3. Learning and Development
Every human is shaped by their life experiences, the place and era they grow up in, and a range of cultural influences. Learning through training programs organized by HR will help employees adapt to changes in processes and technology and thus upskill themselves. Organizations have fixed budgets for L&D efforts. Training provides employees with the opportunity to bridge skill gaps and become more effective leaders. HR managers should follow these basics of HRM and, along with the managers, can collectively decide what kind of training will help employees improve their skills.
4. Succession Planning
Planning for the eventuality that key employees leave a company is called succession planning. In case a senior manager decides to leave, it is the responsibility of HR professionals to find the appropriate replacement. They also need to look internally in the organization for potential leaders suitable for higher-level positions. This ensures continuity and saves a great deal of money for the company.
5. Compensation and Benefits
Compensation includes primary compensation and secondary compensation. Primary compensation is connected to directly paid money for work, which often is a monthly salary and sometimes performance/incentive-based pay. Secondary benefits are all non-monetary profits. There are many benefits available to employees, including a company car and laptop, extra holidays, flexibility in working times, daycare, pensions, and a lot more. The main objective here is to reward people in ways that motivate them.
6. Human Resource Information System (HRIS)
This is not the basics of HR but a tool or software that is used to ensure smooth maintenance of the HR processes. It includes an applicant tracking system, a performance management system, a learning and development system, a payroll management system and more. Ultimately, HR has a significant digital component, which is why the HRIS is the final element when we discuss basics of HRM.
7. HR Data and Analytics
The Human Resource Information Systems will track data which will help HR to make better decisions when it comes to workforce needs, employee turnover intention, the impact of the (recruitment) candidate experience on customer satisfaction, and many others. With technological advancement, even the HR sector has become more data-driven, and this is the reason HR data and analytics have been included in this section of HR fundamentals.
The above-mentioned HR management basics are fundamentally linked with each other and do not work in isolation. You should consider these seven basics of human resource management that collectively empower the HR department in the organization to manage its workforce and help them perform to the best of their capabilities. However, if you are thinking of outsourcing human management services, choose Prompt Personnel. Being one of the leading HR outsourcing companies in Mumbai, we have been helping organizations streamline their HR functions for over 25+ years. Having clients at the Pan India level, our services include temporary staffing, contract staffing, permanent staffing, talent management, labour law advisory and compliance, and many more.
Our dedicated professionals understand your organization’s requirements and provide an effective HR solution. This has led us to win numerous awards and recognitions over the years. The recent one includes a future-ready organization in the large-scale category and is certified as a great place to work in India in 2023.
Get in touch with Prompt Personnel today to fulfil your HR operation needs!