The Ultimate HR Guide

What is Human Resources?

HCM stands for Human Capital Management and differs slightly from HR. HCM is a set of practices related to people resource management. HR stands for human resources and is the person or group responsible for managing everything related to the company’s employees. The HR department handles all aspects of an organization’s employees, including recruitment, onboarding, benefits administration, performance management, and more.

Without a competent HR department, effectively managing your business can be daunting. The HR team manages and develops your employees, ensuring they are engaged and motivated to work towards your company's objectives. Even small and medium-sized businesses (SMBs) require a dedicated HR team to support their workforce. The HR department assists you and your employees achieve your goals, enabling you to focus on your core business functions. As a crucial part of your business, human resources employees' responsibilities will significantly impact your organization's daily operations. Understanding HR employees' various roles and responsibilities will enable you to appreciate the value they bring to your company.

You can become an expert on Human Resources by watching YouTube videos. Also, you can continue reading the rest of this HR guide. Let's look at some of the everyday tasks that HR performs to help you comprehend their profound impact on your business's success.

Why Is HR Important?

There are many reasons to fall in love with HR. Human resource management is the backbone of any organization. It enables companies to attract and retain top talent, foster a positive workplace culture, and constantly improve themselves. That's why this department is often called the heart and soul of a business. Exceptional HR management ensures seamless operations, empowers employees, and creates a sense of belonging. Employees are the foundation of every successful business, so HR management is critical in achieving organizational goals.

While every business strives to prioritize the well-being of its employees, logistical considerations can often present obstacles. Luckily, the human resources department is adept at crafting policies that balance employer and employee needs.

Gone are the days of simply managing payroll and benefits. Today's HR team is responsible for developing innovative strategies to attract top talent, addressing employee concerns to promote retention, navigating legal and compliance issues, and staying up-to-date on industry trends. From start to finish, the modern HR department is committed to creating a positive and fulfilling workplace experience for all. Here are 12 areas that HR has their helping hands in:

Culture

The HR department takes the helm in creating and maintaining the company's culture, encompassing its philosophy, mission statement, and work environment. A company's culture also involves establishing ethical standards, values, goals and expectations, and employee trust. HR may organize various programs, activities, check-ins, or events in your workplace to educate employees and provide a better understanding of the culture. A company's culture is critical to employee experience, as the two are essential to each other's prosperity. A fantastic company culture fosters an excellent employee experience, and a great employee experience reflects and fuels a great company culture. Together, they can lead to valuable business benefits such as increased productivity, reduced turnover, and greater employee satisfaction.

The HR team can be a powerful catalyst in enhancing company culture and employee experience. With their fingers on the pulse of employee and leader sentiments, HR is often called the guardian of workplace culture and plays a significant role in shaping the employee experience. Their primary goal is to establish positive interactions and treatment among all employees, ensuring they feel enthusiastic about coming to work, committed to their jobs, and dedicated to the company's growth. Whether it's a personal or work-related issue, human resources will handle all problems carefully and keep the best interest of your company and employee in mind.

Companies strive to ensure employees are excited to work daily and contribute to their success. Their enthusiasm directly correlates with their job satisfaction levels. If employees are content in their roles, feel that they can grow within the company, and have the option to switch departments if they so choose, they are more likely to be productive team players. The HR team is responsible for ensuring that employees are satisfied in their roles and will work with them should they feel unhappy or unsatisfied at any point in time.

Employment Structure

An HR department should prioritize staffing needs to ensure that the right people in the right positions can drive your business forward. Analyzing the current employee structure can help identify gaps, leading to filling those positions with top-tier talent. For any existing staff that isn't performing, the HR team can step in with training and, if necessary, let them go.

Compensation & Benefits

The HR department handles all the crucial aspects of your employees' compensation, ensuring they get paid on time and that their tax paperwork and W2s are efficiently managed. They also play a vital role in ensuring that decision-makers understand the impact of compensation and benefits on the employee experience. It's imperative to have a solid compensation foundation because it supports the most critical aspects of an employee's life. While a positive culture, targeted hiring, and effective performance management is crucial in making employees value working for your organization, they cannot succeed without a well-structured compensation package.

The HR department understands the importance of employee retention, and that's why they oversee the type and amount of employee benefits your company provides. Offering good employee benefits is essential for the success of your business. It attracts and retains top talent, increases employee productivity, and provides employees with a wide range of perks that help them feel secure in their roles, ultimately keeping them satisfied. The goal is to ensure that the compensation package and company benefits meet your employees' needs for long-term retention, resulting in a thriving and motivated workforce.

Company Business Plan

The HR team of specialists will collaborate with other departments to create, communicate, and maintain the company's strategic plan. This overview includes your organizational framework, values and culture principles, workforce management tactics, and resource distribution strategy.

Talent Acquisition

Recruiting, hiring, and talent acquisition may seem interchangeable, but mastering each step is crucial for keeping employees happy and engaged in the long run. Whether it's a one-person show or a team of recruiters, it's important to coordinate each step of talent acquisition to ensure efficiency and effectiveness.

Take the opportunity to ask candidates about their past roles, qualifications, and pay expectations. Remember that job seekers evaluate the position and company just as much as they are evaluated. Presenting the company in a positive light is vital since 67% of candidates have had negative hiring experiences, leading more than half to decline job offers. Learn more about this critical responsibility's particulars with our complete Talent Acquisition guide.

Onboarding

Providing necessary training for new hires is crucial to ensure they feel comfortable in their new role and prepared to make a positive impact as quickly as possible. This process serves as the foundation for employee onboarding, the beginning of the employee life cycle that ends with offboarding. While the bulk of the employee experience lies in between, the onboarding and offboarding processes significantly impact the entire journey, including what happens after the relationship ends.

Therefore, it is imperative to prioritize and execute these processes effectively to deliver probable value and a positive ROI while avoiding the detrimental effects of ineffective onboarding and offboarding. HR must pay close attention to these processes and invest in careful planning, execution, and analysis to ensure they are done correctly. To learn how vital onboarding is for HR, check out our complete guide to Guide to Employee Onboarding.

Time & Attendance

Time and attendance is a crucial aspect of HR that involves monitoring and tracking employee work hours. This includes:

By implementing the right time-tracking strategy, your HR department can significantly reduce the burden of monitoring holiday time, overtime, and special projects.

Payroll

Although payroll is often overlooked when considering the elements of HR that define company culture, it is one of the most impactful responsibilities assigned to HR. Paying employees for their work is essential to organizational success, yet it is often taken for granted. Employers assume that they will pay their employees the agreed-upon amount on time, and employees assume the same. In comparison, the idea of company culture is still a relatively new and loosely defined concept. Many people associate culture with perks or progressive takes on the traditional workplace, like having a yoga retreat or a cereal bar in the break room. Need to know more? Check out our Ultimate Guide to Payroll and Year End Payroll & HR Checklist.

Analytics & Reporting

Suppose you still use paper files or a basic spreadsheet to handle your HR tasks. In that case, you're accumulating HR data - any information HR documents about their organization and workforce. With most HR teams now using specialized HR software, an abundance of data is being collected daily across various areas. The digitization of business processes means that every bit of information created or entered is saved somewhere until the owner deliberately erases it.

But the key is to make collected data useful. It's only applicable if you can analyze it and comprehend what it implies for your team and organization. An HR analytics team can help. An HR analytics team scrutinizes HR data and reports on the trends. HR analytics lets you sort and compare the data you've gathered, exposing disparities between what you anticipate or desire and what unfolds in reality. Reporting is HR analytics' end product: reports showcase your data analysis comprehensibly for you and others. A great Human Capital Management System (HCMS) is crucial for impactful analytics and reporting. Learn four ways an HCMS will change the way you view HR.

Compliance

As an HR professional, keeping tabs on the ever-changing landscape of hiring and employment laws is crucial. Compliance protects your organization from costly penalties and legal disputes. It safeguards your employees from discrimination, harassment, and other harmful practices.

Don't view HR regulations as a bureaucratic hindrance - they ensure that your team members have access to fundamental rights and protections.

HR Software

There have been many advancements in how HR professionals manage their work. No longer do they have to use a typewriter or flip through encyclopedias. Modern software has streamlined HR responsibilities for faster, easier, and more efficient work, like Human Resources Information System (HRIS). Today's HR professional has to know how to use HR software to do their jobs; otherwise, they will be buried in paperwork, PTO balance inquiries, and tedious double entries. Learn how to streamline the HR process and how an HRIS can benefit your company.

HR Careers & Department Roles

Are you looking to develop the best HR team? Let's explore! Depending on the size of your company, you may need to fill different positions and levels within your HR department. The titles of these roles may vary, but our diagram will give you a general idea of the HR department structure. Now, let's answer the burning question - what do HR employees in these roles do? And what sets each position apart? Keep reading to find out.

Entry-Level Human Resources Roles
If you're a student, a recent graduate, or someone new to the HR field, entry-level HR jobs may be the perfect fit for you. These positions range from HR assistants and interns to specialists, generalists, and recruiters.

HR Assistant/ Intern
HR assistants and interns are the backbone of the HR department, responsible for handling administrative tasks such as organizing paperwork and completing employer portions of new hire information. Their hard work allows other team members to focus on more complex tasks, ensuring the department remains productive.

HR Specialist
HR specialists are a great asset to the human resources department because they focus on one area to ensure everything runs smoothly. They are typically found in large organizations where HR departments need employees dedicated to specific HR responsibilities. These specialties include HR development, HR management, and organizational development. Their ultimate goal is to become an expert in their chosen specialty. For example, a benefits specialist would need to know and understand the intricate details of a company's benefits plan and easily explain that information to new hires and current employees.

HR Generalist
HR generalists possess a wealth of knowledge that spans multiple areas of the department and its needs. These individuals easily tackle typical HR tasks such as compensation, employee relations, and workplace environment, thanks to their broad range of HR expertise. They may hold an entry-level position, serving as an HR assistant who supports the entire department, or they may lead the HR department as a manager, chief HR officer, or people services manager. HR generalists can be found in organizations of all sizes, especially in small and medium-sized businesses where HR departments may not have a large team with different specialties.

Recruiter
Recruiters hold a crucial role in sourcing exceptional talent for the organization. Identifying and attracting new individuals to join the team ensures that the company's workforce remains robust and productive, driving growth and success.

Mid-Level Human Resources Roles
As HR professionals climb the career ladder and gain valuable experience, they are poised to transition into more senior roles within the industry. These mid-level positions often include advanced specialists, HR managers, and senior recruiters.

Advanced Specialist
Advanced specialists are HR specialists who have been promoted to focus on a specific technical area. They are responsible for creating detailed job descriptions and training entry-level specialists. These skilled professionals are the go-to experts for their company on all matters related to their HR specialty.

HR Manager
An HR manager's role involves leading and guiding a team of entry and mid-level HR employees. Their primary responsibility is to tackle challenging HR tasks that revolve around establishing and maintaining company-wide policies, values, and culture.

Senior Recruiter
Think of senior recruiters as your unique staffing solution. They lead a team of entry-level recruiters who specialize in finding the perfect candidates for your open positions. Depending on your needs and budget, you can hire senior recruiters as a third-party service or bring them in-house.

High-Level Human Resources Roles
For those who dedicate their career to HR, the possibility of ascending to a top-tier position within your company is within reach. This could mean becoming an HR consultant, HR director, recruiting manager, or even the esteemed role of vice president of HR or chief of human resources officer (CHRO).

HR Consultant
An HR consultant manages all administrative tasks, ensuring your company complies with all state, federal, and internal policies. These consultants can serve as subject matter experts for specific HR-related policies. Depending on your resources and budget, you can hire these professionals as third-party assistance.

HR Director
When an HR manager earns a promotion, they may ascend to the esteemed position of HR Director. Within SMBs, the HR Director supervises all departmental activities and answers directly to the CEO.

Recruiting Manager
As the masterminds behind your company's talent acquisition efforts, recruiting managers approve your staffing strategy and ensure all positions are filled with top-tier candidates who meet your business needs.

Vice President of HR or Chief Human Resources Officer (CHRO)
In more prominent organizations, a VP of Human Resources or a Chief Human Resources Officer is possible. This individual is accountable to the CEO and manages the whole HR operation while establishing high-level goals for the department.

Setting an HR Budget

Investing in your human resources team is essential for building a solid and thriving company culture. Establishing a budget that covers the costs of hiring and developing your HR department is crucial. This budget will support company-wide programming and culture and team-building activities that your HR team can organize. So, set your sights on a solid HR budget to set your company up for success.

Develop a Company-wide Staffing Strategy

Craft a thorough staffing plan to identify the positions that require new hires. This endeavor may involve reshuffling existing personnel into new roles or eradicating specific jobs and their incumbents from the company.

Establish Safety Procedures

Creating a safe and healthy work environment is crucial for your employees, who spend approximately eight hours daily in the office. Their productivity will suffer if they feel unsafe or at risk of physical or mental harm. Establish workplace health and safety standards to prevent physical or psychological damage. Outline procedures for handling personal conflicts and emergencies to ensure everyone can manage them effectively and efficiently.

Display Mandatory Employment Posters

Ensure compliance by displaying the required employment posters. As per state and federal laws, companies and their HR teams must showcase specific employment posters in their offices for easy visibility. It is imperative to stay updated with the changing requirements of your state and country and keep the necessary signs up-to-date.

Gather Administrative Records

Ensure proper documentation management by delegating administrative record collection and organization to your HR department. Though your executive assistant may handle some of these tasks, keeping job applications, benefit plans, tax documents, and compensation and payroll details separate and organized for efficiency and compliance is essential. Trust your HR team to handle these crucial records.

Create a Payroll & Administration System

Create a comprehensive payroll and compensation system that covers all types and levels of employees. Your potential hires will want to know how, when, and how often they'll receive their pay. Additionally, this knowledge will aid you in determining acceptable salary ranges for your entire team.

Craft Job Descriptions

Craft compelling job descriptions to attract top talent. By posting these descriptions on your website and job platforms such as LinkedIn and Glassdoor, you can entice qualified candidates to apply. Don't forget to create job listings for all your HR positions. Once you've filled some of these roles, leverage your new hires' expertise to help you create job descriptions for other areas of your growing company.

Create Clear Benefits Plans

Craft a comprehensive benefits plan that communicates the value of joining your team. A well-crafted plan is essential for attracting and retaining top talent. By outlining all the perks and support you offer, your new hires will feel confident in their decision to join your organization.

Craft a Comprehensive Employee Handbook

Create an employee handbook that effectively communicates the expectations regarding workplace conduct, safety, health, and culture from day one. Whether in printed or digital form, this handbook should answer all your new hires' queries while going through training and starting work in your organization. Feel free to include any additional topics you deem necessary.

Performance Management

Developing a system for performance and feedback is critical to ensuring employee satisfaction and success, which are vital components of a thriving company. Without these, retaining top talent would be an uphill battle. Companies that incorporate regular feedback mechanisms have a 14.9% lower turnover rate than those that don't. Consider establishing a company-wide performance and feedback process to ensure everyone adheres to a specific standard set and maintained by you and your HR team. Regular employee performance evaluations guarantee that all staff members perform to their full potential. This practice also allows employees to feel valued, content, and optimistic about their future with your company.

Health & Safety Policy

Workplace injuries can threaten any industry, but your company doesn't have to be a statistic. With a comprehensive health and safety policy, every employee clearly understands their responsibilities to maintain a safe working environment for one another.

Benefits and Compensation Policy

Keeping your employees informed on their payment schedules and benefits is essential. Be sure to clearly outline the payroll frequency and payment methods in your policy, as well as the additional perks your business offers, such as medical benefits, wellness programs, bonuses, allowances, and more.

Working Hours & Overtime Policy

To provide our employees with the utmost convenience, it is essential that our policy clearly outlines the flexibility of work hours, the timing and duration of breaks, as well as the process for clocking in and out. Additionally, we will explain the compensation and handling of overtime work.

Expense Policy

Detail the appropriate protocol for managing expenses, particularly when employees travel for business purposes or coordinate team activities. If employees must use their funds, clarify which costs can be reimbursed and provide guidance on the necessary procedures.

Attendance & Remote Work Policy

Determine if your employees should work from the office or home with our policy. If your team can work remotely, don't forget to incorporate necessary procedures like requesting a home office allowance.

Performance Evaluation & Promotion Policy

Performance evaluation policies serve as a transparent guide for employees to understand how their work is evaluated and how they can be rewarded for their efforts. These policies ensure fairness for all and can be a powerful motivator for success.

Termination Policy

On the other hand, the policy for ending employment outlines the proper procedure for employees to submit their resignations and the length of notice they must provide. Additionally, it may detail the actions that could lead to an employee's termination.

Leave Policy

Encouraging your team to take time off work is critical to maintaining their health, happiness, and productivity. Keep them informed about how much time they're allowed to take away from work and how they can request leave. Be sure to include detailed policies for vacation, sick leave, public holidays, and maternity leave.

Depending on your location and industry, there may be additional HR policies and procedures that you're legally mandated to include in your employee handbook. Be sure to consult with a lawyer to ensure that you don't overlook anything crucial.

HR Policies & Procedures

The workplace is constantly evolving and modernizing, and your HR policies must reflect that. Developing HR policies and procedures is a fundamental part of human resource management. While some policies are required by law, it's not the only reason they are necessary. In addition to protecting your organization from legal claims, policies are essential in fostering a culture of trust, fairness, and inclusion. The policies you need to include in your employee handbook will depend on several factors: size, location, industry, and your organization's unique needs. However, there are several key policies that most organizations deem necessary to have, regardless of circumstances.

Recruitment Policy

Not only does the recruitment policy establish standards for selecting top-tier candidates, but it also outlines the comprehensive onboarding process for new employees. Additionally, incorporate any employee referral programs into this policy for maximum efficiency.

Code of Conduct

The code of conduct sets the bar high for employee behavior, clearly outlining what is deemed acceptable and unacceptable while ensuring a safe and comfortable work environment. It typically covers areas such as:

Attendance & Remote Work Policy

Performance Evaluation & Promotion Policy

Human Resource Management Trends

Companies need to prioritize benefits and the work/life balance to attract top talent. Gone are the days when a basic healthcare plan and office treats suffice. Today's job market demands more. See why Glassdoor reviews matter to your company. Candidates look for a positive company culture and an employee experience that elevates their everyday life. Organizations are upping their game by offering flexible schedules, remote work options, four-day weeks, and generous time off. Candidates are also looking at company reviews. HRM has evolved from filling positions to creating an environment where employees feel valued, supported, and empowered to be their best selves – personally and professionally. As our world constantly changes, so will HR and its approach to solutions. Paying attention to payroll and HR trends is very important.

What is human resource management (HRM)?
Human resource management is the key to unlocking a successful recruitment, onboarding, training, and management strategy for employees from their job application to severance. It involves developing policies that promote a positive work culture, improve employee productivity, and build a robust employer-employee relationship.

How do I ensure HR compliance?
Stay ahead of the game by keeping track of HR news for changing regulations, documenting policies, and providing thorough training to HR leaders.

Human Resources