Human Resources, HR

Critical Success Factors for Human Resource Departments

Businesses rely on human resources departments to handle key functions associated with employee hiring, compensation and relations. To add value and support the success of the company, HR professionals must understand the business, develop and execute functional competencies, and serve as internal consultants to management. Key areas supported by HR departments involve workforce planning and staffing, managing direct and indirect compensation schemes, employee relations, performance management, training and legal compliance.

Sourcing and Consulting

The correct job placement is a big part of any company’s success. Hiring talented individuals is only part of the equation. Placing the right person in the right position is important as well. Screening and recruiting qualified employees is a core responsibility of the HR department. To properly identify potential candidates, HR professionals must understand the needs of the organization. This means your business should create accurate job descriptions and identify the skills, knowledge and experience level of the required personnel. The HR department’s job is to maximize company funds by recruiting new hires and assisting line managers in the evaluation of current staff for promotions and lateral movement.

Competitive and Equitable Compensation

Employee recruitment, retention and overall morale depend on sound compensation practices. HR departments must create, monitor and maintain company pay scales that are both competitive and equitable. This begins with job analysis. HR staff should properly categorize all positions into exempt and non-exempt status in accordance with the Fair Labor Standards Act. Another key task is to audit salaries to make sure employees are treated equitably and not discriminated against in any way. HR staff should also help ensure that managers and sales people are offered competitive compensation plans to keep them motivated. The HR department often designs and monitors the administration of these plans.

Performance Evaluation and Training

A manager’s role includes motivating and coaching staff, defining the behaviors essential to support success, and evaluating employee performance. HR professionals help support line management by creating and implementing performance appraisal systems. As internal consultants, HR personnel collaborate with managers by reviewing performance issues and assisting management with performance improvement processes. Additionally, some companies have HR staff design and deliver training programs that accelerate employee development.

Overseeing Compliance

Lawsuits, fines and penalties affect the financial health of a business. Complying with federal and state labor legislation is mandatory in any successful business. A prime responsibility of human resources involves creating employee manuals that communicate appropriate behaviors in the workplace. Educating the workforce on zero tolerance policies regarding discrimination and harassment enforces the requirement of fair and equitable treatment of all employees. HR staff must keep abreast of labor laws and continually monitor and audit the organization’s employment practices.