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6 Important Areas of Human Resources for Any Business

The human resources department is a fundamental part of any organization. This department is tasked with the responsibility of handling resources related to employees. As you can imagine, there are many different areas of human resources in any organization. The various activities that HR departments carry out are all connected by a desire to promote employee well-being in the workplace.

While human resources is an umbrella term used to describe the management and development of employees in an organization, there are six main areas of human resources that we will go over in more detail below. This will help you understand the fundamental role HR plays in all businesses and why having a well thought out HR department is so important.

Here are the six important areas of human resources for any business:

Area #1: Staffing & Recruitment

Staffing is an essential area of human resources for any business. After all, you can’t really run a business without having any employees (unless you’re a solo entrepreneur!). When you’re looking for top talent to run your finance department, or a marketing associate to help promote your latest campaign, having a department dedicated to this will make the job a whole lot easier.

Your HR department will work diligently to add someone with the desired talent, who also fits with your organization’s vision and values, to your team.

Area #2: HR Training & Development

Once you have your new employee hired, they must receive on the job training. This is another area where your HR department is so important. They are responsible for helping new employees learn the culture of your organization and provide them with the training they need to get there.

In this area of human resources, the process usually begins with employee onboarding and an orientation. This is where your HR department will train new employees on basic things like how to sign up for benefits, how to request time off, where the breakroom is, etc. They will also familiarize new employees with their new roles and arrange to have them learn essential parts of their job (like how to answer the phone or how to run reports) with their team members.

HR departments are also responsible for employee development and continuing education. This includes seminars, industry conferences, internal training, and online learning. These initiatives help employees maintain skills, while also staying current and developing new skills.

Area #3: Compensation & Benefits

HR departments are also responsible for developing compensation and employee benefits management packages. It is also their responsibility to maintain these programs as things evolve and change.

This is a significant part of any business as prospective employees are drawn to organizations that offer good compensation and benefits packages. If you want to attract and retain top talent in your industry, compensation and benefits are a good place to start.

Compensation packages should include employee’s base bay, any commission, bonuses, and information on raises.

Benefit packages include things like health and dental insurance, life insurance, paid vacation time and sick time. If your business also offers other perks like the ability to work remotely, free or subsidized meals, and flexible hours, these perks can also be included in the benefits package.

Area #4: Health & Safety

Next up is health and safety. Your HR department will work to ensure compliance with provincial and federal health and safety requirements. This includes things like appropriate safety equipment and the proper handling of hazardous materials. They also need to make sure they stay op-top of any changes that may come up about legislation and implement new safety measures as required.

These policies are usually communicated with employees during their onboarding and orientation. Employees can usually find information on such things on the company intranet or posted on bulletin boards throughout their workplace.

Area #5: Employee Satisfaction

Morale is an important yet sometimes overlooked area of human resources. HR departments are also tasked with monitoring employee satisfaction levels. This may include putting together and distributing a quarterly survey to gauge how employees are feeling about their workplace. What is learned from this can be included in improvement plans.

Having a satisfied workforce means many positive things for your business: increased levels of employee engagement, employee retention, increased levels of motivation, and productivity.

HR departments are also responsible for implementing employee recognition programs which are an effective way to help recognize employees and increase employee satisfaction.

Area #6: Employee Relations

Employee relations refers to an organization’s efforts to create and maintain a positive relationship with its employees. In terms of employee relations, HR departments have two primary roles. The first is to help prevent and resolve issues or conflicts among employees and management. The second is to develop and implement effective employee relations strategies.

Employee relations strategies include things like how to boost employee morale, how to deal with various employee issues, and conflict management.

Maintaining positive and effective employee relations can help businesses keep employees dedicated and committed to their workplace.

Now that you know the six main areas of human resources, will you be making some changes or adding to your HR department?