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Human Resources (HR) is a key business concept that considers employees to be a tangible capital asset. HR is primarily used in reference to the management field that focuses on maximizing employee performance. HR also generally refers to the department within companies that is responsible for hiring, benefits and legal compliance.
What is HR Management?
HR professionals’ primary task is staffing. That is, they must advertise, screen, interview, hire and train employees. At the opposite end, they are also tasked with providing performance reviews and if necessary, terminating employees.
Staffing is a complex and challenging process that never ends. Smart and successful companies assign HR managers continual staffing duties. This is because employee turnover can cause serious financial harm and operational problems to the company. For example, a manufacturing facility with hourly employees will most likely have a consistent turnover rate because many entry-level positions are labor intensive and low paying. Consequently, they must continually post job ads and screen hundreds of candidates to have people available to immediately start work. However, they must be very careful how they screen and interview candidates.
HR Management and Benefits
In smaller companies, HR managers also function as account and benefit coordinator. This means that they are in charge of payroll and insurance benefits. In larger companies, there will be a specific HR professional in charge of benefits, which commonly includes retirement plans and health insurance.
HR departments are also in charge of handling unemployment benefits and workers’ compensation claims. If an employee is injured due to poor safety conditions, they will naturally file a workers’ compensation claim. OSHA may send an investigator to inspect the accident scene and interview employees. The state’s workers’ compensation organization may open an investigation and put the injured employee on short-term disability. Because these actions may result in hefty fines, HR professionals must have excellent PR, analytical and organizational skills.
HR Management and Legal Compliance
HR professionals must maintain legal compliance with state and federal employment laws. The Equal Employment Opportunity Commission (EEOC) is the federal agency that ensures companies do not discriminate against job candidates and existing employees. The EEOC prohibits discrimination based on age, race, gender disability, religion and pregnancy. Therefore, HR professionals must be very careful how they question JOB candidates. A casual question about national origin during a job interview may result in a discrimination lawsuit if the employee feels they weren’t hired because of their ethnicity.
HR professionals must also ensure compliance with other applicable laws. The Department of Labor (DOL) has basic laws that stipulate overtime and workers’ rights. The DOL’s safety compliance branch, OSHA, sets laws that govern worker safety and well-being.
What are Standard HR Certifications?
Most HR professionals have a degree in human resources. The Society for Human Resource Management (SHRM) is the premier HR advocacy organization that offers two certification programs: the SHRM-CP and SHRM-SCP. The SHRM-CP certification is designed for operational HR professionals who implement policies, perform day-to-day HR functions and act as the primary HR contact for employees and management. The SHRM-SCP certification is designed for senior HR professionals who are strategic decision makers that develop policies and oversee HR operations.
To close, excellent human resources are important to the success of every company. HR is a field that concerns employee selection, development and service coordination. HR managers legally protect their company while administrating important programs.
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