Human Resource Management (HRM) is the practice of managing employees to achieve better performance. Check out the importance of HRM here.
“Financial resources may be the lifeblood of a company, but human resources are the brains” As aptly put by Rob Silzer, human resources are as critical to success as other business operations, like marketing, finance, or sales.
Until fairly recently, HRM that stands for human resource management was not considered an important part of the organization, but this notion has been largely altered by new technology, globalized markets, and changes in organizational hierarchies.
Human resource management has taken a peak and become an irreplaceable unit for both startups and enterprises. It is high time that they are given the importance they are due.
Human Resource Management (HRM) is the practice of managing employees to achieve better performance.
Let’s say, if you hire a bunch of people into your organization, you are looking for candidates who can fit into the company culture, stay longer, and be more productive than people who won’t fit into the company culture.
HRM takes care of the affairs such as hiring, onboarding, salary compensation, and ensuring employees’ safety.
Human resources (HR) is the department that oversees employee-related matters. The human resources department recruits, hires, trains, and retains workers for a company. Beneath these duties are dozens of HR tasks that keep organizations running smoothly. Human resource management is both the process and the team of people in the department.
This is what Human Resource Management boils down to, optimizing company performance through better management of human resources and when done right, the power it brings to the organization is immense.
The objectives of human resource management (HRM) are to:
In old times, human resource management was personnel management. Personnel management evolved through the years after research on human behavior by great psychologists.
George Elton Mayo was an Australian psychologist who did multiple experiments on human behavior and regarded work-life balance as the driving force behind the higher productivity of workers. He was later named the ‘Father of Human Resource Management.'
Robert Owen was another social reformer who created a principle of 8 hours of work, 8 hours of rest, and 8 hours of sleep. He implemented many social and welfare practices for his workers and saw his workers get happy, motivated, and working better. Therefore he was referred to as the ‘Father of Personnel management.'
According to a Human Resource Magazine article, the first personnel management department (later evolved as Human resource management) began at the National Cash Register Co. in the early 1900s. Now there are numerous courses that equip human resource leaders to effectively optimize the corporate workforce.
The functions of human resource management can vary depending on the size and type of organization, but they typically include:
“It is often said that a company is worth what its employees are.” Human resource professionals are the people that bind the organization together and ensure that work continues smoothly, and everyone is aligned with the organization’s goals and values.
If you start to look around, the businesses that keep their employees happy and engaged are ranking at the top. Therefore a well-trained HR professional is necessary in every organization who ensures a holistic work culture.
Human resource management should not be underestimated as a field. It plays a vital role in company operations and provides numerous benefits to organizations, including:
For these reasons and countless others, its very important to have an organized human resource management system. there are also a substantial number of benefits to having a well organized human resource management system. Human resource departments and HR managers are vital components of business operations today, and will maintain an important place in workplaces around the world in the future
There are four key categories in which we can distinctly place the HRM roles:
The job responsibilities in an HR department can vary considerably depending on the size of an organization. In a large corporate environment, HR managers may specialize in specific HR areas such as training, recruitment, or staff benefits. In a smaller company, there may be one of two human resources generalists who oversee all HR functions. Here are some core HR functions and steps involved.
The human resource department functions through dedicated and adequately qualified HR professionals. While in smaller companies, there could be one or a few HR personnel, in large enterprises, it is a full-fledged department with its own hierarchy and Chief People Officer or HR Director etc. For startups, HR generalists manage everything from recruitment to payroll management, appraisals and formulation of company policies. Whereas, in large enterprises with hundreds or thousands of employees to deal with, there would be specialists with each person dedicatedly handling a given role.
As with many industries, the human resources industry is expected to undergo significant changes in the coming years. Below are some of the most important emerging trends in HR.
1. Rising Importance of the HRIT Role
More and more aspects of the workplace are becoming technologically advanced, and the human resources department is no exception. Many companies are now creating specialized information technology roles within their team, often referred to as HRIT specialists.
As this role is being shaped, it is rapidly growing in strategic importance. According to the Society for Human Resource Management (SHRM), it is vital for human resources staff to have a working knowledge of information technology because HR touches everyone in an organization and has to deal with many data privacy and integration issues.
2. Artificial Intelligence and Machine Learning
Another trend in human resource management is the increasing importance of artificial intelligence and machine learning. One of the biggest advantages of AI technology is the ability to streamline the application process. Instead of requiring HR staff to spend countless hours reading hundreds of resumés and cover letters, AI allows complex programs to do the same work in a fraction of the time.
Even with this advanced technology, organizations will still rely on skilled professionals to handle the complex and nuanced situations that machines can not. HR professionals can actually use this technology to their advantage by putting the time and energy that is saved to other more important duties.
3. Technology to Measure Engagement
Just as technology is shifting many other aspects of human resource management, it is also impacting the way companies are measuring employee engagement.
In a 2015 study, SHRM found that 89 percent of medium-to-large companies utilized standard surveys to assess employee engagement while only 30 percent made use of advanced technological methods—such as analyzing computer usage data—to discover how employees were interacting with emails, websites, and more. The field has made a massive shift toward using these more advanced means of gathering information in the last two years.
4. An Emphasis on People Management
It’s well documented that happy, well-managed teams often result in a successful organization; this isn’t a new concept. As the structure of the modern workplace continues to evolve, however, the need for effective leaders has become increasingly critical.
More and more organizations are realizing their people are their biggest asset and they’re realizing that they really need to pay more attention to how they organize people to do different jobs.
With the consistent restructuring of teams and the corporate world’s overall lean into the gig economy, the general scope of HR teams’ work has developed into “a much more complex task of trying to organize these people and resources.”
5. Increased Demand for Data Analytics Skills
Digital recruitment tools like LinkedIn are incredibly popular, with this platform alone gaining 120 new users every minute. These users are generating incredible amounts of data daily that can be beneficial to the practices of HR managers. Due to this fact, HR managers now have unparalleled access to data on users’ engagement with posted jobs, salary metrics, candidates’ previous employment, and much more.
With the right skills in data analytics and interpretation, these managers can use collected information to identify patterns and note other significant findings, in order to make informed hiring decisions and improve recruitment processes in the future. They can also take the assistance of human resource management consultants as well.
Today the recruitment process has been automated and taken over by artificial intelligence and robots, but the “humanness” can never be replaced by machines, a machine will not understand the emotions and conflicts of the employee, only another human can.
Therefore, humans are crucial assets for any organization, although today many tasks have been handed over to the artificial intelligence but they lack judgment skills which cannot be matched with human mind.
To suffice, humans can never be replaced come what may!
From nonprofits to Fortune 500 companies, these days human resource management is a vital business function that affects a company’s bottom line. Gone are the days in which HR managers only dealt in “hiring and firing”; now they are an essential part of an organization’s long-term growth. In modern workplaces, HR managers are often involved in the process of strategic planning. When these professionals have a seat at the table during planning sessions, they can help the entire company work together more seamlessly and move forward as a whole.
To effectively execute strategic human resource management, a company may follow a set of specific protocols. HR managers use these strategies to support their organizations’ objectives and goals, planning the company’s next moves.
Some HR managers gather data using a system called SWOT analysis, which assesses a company’s strengths, weaknesses, opportunities, and threats. After taking an idea of these four areas, company leaders brainstorm specific ways to capitalize on strengths and opportunities while avoiding threats and minimizing weaknesses. For example, if a company identifies limited staff and skills as a weakness, it can set the goal of hiring more staff or offering training to expand current employees’ skill sets.
Once a vision has been established, the HR department works to create a specific, measurable strategy with concrete goals that align with the organization’s mission. HR departments may also work to create action items and delegate them to employees, or communicate changes to the entire company. This part of the process often involves adjusting funding allocations or introducing new positions to meet certain goals.
The company must be aware of the issues that daunt the HR world. Finally, the company must create a process to continue improvement by asking what happens next. This step involves creating clear metrics to measure progress and clear systems for sharing and analyzing data. Once that data has been analyzed, the company may decide to continue moving forward with the current action plan, or may stop and rework its goals.
Faced with rising numbers of contract-based workers and increasingly complex regulations, HR professionals have turned to HRM software to help them keep pace with changing workforce environments and people management needs.
This technology is available with a variety of options to suit businesses of any size. Basic systems may offer recruitment services, payroll and benefits, while more robust solutions tend to include talent management, international compliance support and advanced analytics.
HRM software is a digital solution for managing and optimizing the daily human resources tasks and overall HR goals of an organization. HRM software makes it possible for HR staff and managers to better allocate their time and resources to more productive, profitable efforts.
Why use a human resource management system (HRMS)?
HRMS are designed to meet the core needs of HR and automate basic administrative functions. With the aid of these people-centric, data-powered solutions, HR managers may be able to power up their hiring process by:
Understading what human resource management systems are and optimising the same according the requirements of the company is where the challenge lies for Human resource managers and specialists. Thre are a variety of workflows for human resource management systems, understanding them and implementing the same will keep you ahead of the curve, and bring the best out of the various benefits of human resource management systems.
From the hiring process, employee onboarding, and scheduling to compliance and benefits, HR systems can run like clockwork with the right technology. Without it, it’s all a hassle and unnecessary work for everyone in the software industry.
It all comes down to the automation feature of web-based human resource management systems whose competitive advantage is making workforce management relatively easy by existing in a core HR software platform that helps a wide range of manual tasks, administrative tasks, and daily HR tasks, such as document management. There are some extremely powerful human resource management system modules which are inbuilt in these softwares and its all matter of picking the right one for each companies requiremnts.
Some of the best HRM softwares that are suitable for companies of all sizes. Here are a few of the best ones in the market.
Rippling is the first choice for businesses to manage all of their HR, IT, payroll, benefits, corporate cards, expenses, and more–in one global workforce platform. By connecting every business system to one source of truth for employee data, businesses can automate all of the manual work they normally need to do to make employee changes.
Take onboarding, for example. With Rippling, you can just click a button and set up a new employee’s payroll, health insurance, work computer, corporate card, and third-party apps–like Slack, Zoom, and Office 365–all within 90 seconds.
Gusto is an online HR software that helps the HR management workflows of small businesses run smoothly. It has the core HR functions that make sure employee satisfaction is the number one priority within a narrow scale, which meets the needs of small businesses with no problem.
3. UKG Pro
UKG Pro is a powerful, global HRM solution that transforms your business with a connected global workforce experience delivered through resilient and mindful HR technology. From payroll to talent to service delivery to surveys, and everything in between, UKG Pro is the powerful HRM suite you need to drive people-focused results.
Darwinbox is a new-age and disruptive mobile-first, cloud-based HRMS platform built for large enterprises to attract, engage and nurture talent. With the help of an agile platform, users can establish employee databases, company calendars, organizational charts and permissions. Recruiters can set up branded career pages, source candidates from various channels and manage prospects throughout the hiring process.
With Freshteam, you get to make sure your HR efforts are up to date with the 2022 standards, from hiring to onboarding, time tracking, employee data, and day-to-day workflows of the HR team.
Freshteam helps your HR team with features such as: applicant tracking system, onboarding and offboarding, employee information system, time off, mobile app, and detailed HR reports to take your team’s performance to the next level!
monday.com is an open platform that makes it easier for HR managers to build custom solutions for their team’s needs. It is the ultimate software that has been praised by many human resources managers for its clean UI, simple system, and engaging core HR functions.
7. Bamboo HR
BambooHR is an award-winning HR platform that helps your growing organization to automate, centralize, and connect your employee data all in one place. It gives you a one-stop shop to manage employee data and gather valuable insights to find, hire, and onboard the best talent. It also simplifies payroll, tracks hours, captures benefits and measures the employee experience and performance.
Namely is a human resource management system that offers the core features of human resources information systems with some special features that are worth mentioning. This HR platform helps businesses improve their HR processes and remain compliant in the meanwhile. Namely is trusted by 1,400+ organizations. It seamlessly delivers features like employee onboarding, talent management, time and attendance, recruiting, analytics, employee management, and more—letting you manage all your HR procedures and policies from one platform.
Workday is a popular HR software that is a one-stop solution for finance, HR, and planning—all in one. It helps you manage and organize your HR processes while keeping your bottom line in mind. This HR software is trusted and used by many organizations across various industries, including Salesforce, Toyota, Visa, Target, and Adobe.
Assembly has helped thousands of companies achieve 95% employee engagement. Assembly works great for teams of all sizes and has a free trial option. Assembly offers a variety of useful features and integrates with Slack, MS Team, and popular SSO & HRIS solutions. It simplifies HR & recruiting with templates such as employee benefits survey, contractor time tracking, employee exit interview survey, employee satisfaction survey, eNPS score, internal referral program, interview questions template and new hire survey.
Startups have begun to wiggle into the marketplace and create a niche through product innovation. While the human resource management needs of the small business may not be same as those of the large firms, even a business that carries only two or three employees faces important personnel management issues.
Human Resource Management is integral today for the existence and successful sustenance of a company of any size and nature. An effectively structured HR department contributes and impacts the ethos of the entire organization.