What is HRM?
Human Resources or HRM (Human Resources Management) includes all the work related to employees within an organization. It covers all processes and activities connected to employees — from recruitment and onboarding through training, evaluation, safety, performance, to the end of employment. It is a systematic process of taking care of employees throughout their entire lifecycle. HRM is not just the work of HR professionals, but largely part of the role of direct supervisors and managers. Well-established HR helps a company to:
- hire and retain quality people
- ensure compliance with labor laws
- build a positive company culture
- increase productivity and reduce turnover
Whether you run a small business with a few employees or a medium-sized company with several departments, HR is key to success.
How to manage HR in a company?
Approach depends on company size; HR is handled differently in a tiny team than in a business with 50, 100, or 500 employees.
How to manage HR in a small company?
Small businesses often don’t have a dedicated HR department. People tasks are frequently handled by the owner, founder, or CEO. Keep HR administrative work simple, affordable, and easy to maintain. Best practices for small U.S. businesses:
- Basic written HR policies — even a small business should have clear, written policies for hiring, PTO, workplace conduct, and termination.
- Secure employee records — keep offers, contracts, I-9s, W-4s, certifications, and personal employee data stored securely and in one place.
- Simple hiring process — standardize steps from job posting and candidate screening to interviews and offers.
- Onboarding and offboarding checklists — make sure new hires receive equipment, logins, benefits enrollment info, and initial training; when employees leave, revoke access and collect company property.
- Basic training plan — focus on job-required training and documenting completion, including compliance training like safety or harassment prevention.
- Regular informal feedback — even without formal reviews, give employees ongoing feedback and coaching.
How to manage HR in a growing or medium-sized company
As your business scales, HR processes should become more structured and consistent. Practical HR practices for U.S. small-to-midsize companies:
- Create an HR role or team — hire an HR manager or build a small HR team to own recruiting, benefits, compliance, and employee relations.
- Comprehensive HR policies — formalize policies covering hiring, onboarding, time off, performance management, payroll, benefits, and terminations in writing.
- Use an HRIS or HR software — maintain a central system for employee records, time off management, payroll integration, performance reviews, and training tracking.
- Standardize onboarding and offboarding — coordinate HR with IT, finance, and managers to automate account provisioning, equipment assignment, and exit procedures.
- Structured learning and development — implement required compliance training, role-based skill development, and leadership programs.
- Regular performance reviews — conduct consistent performance evaluations, set development goals, and document performance improvement plans when needed.
What HR Management processes includes in
- Recruitment and Hiring: Finding, hiring, and onboarding new employees.
- Job Descriptions: Defining qualifications and job responsibilities.
- Pay and Benefits: Managing employee salaries, benefits, and following labor laws.
- Employee Communication and Relations: Promoting open communication and handling employee concerns.
- Training and Development: Identifying skill gaps and supporting career growth.
- Performance Reviews: Setting goals, evaluating work, and giving feedback.
- Workplace Safety: Maintaining a safe work environment and meeting health regulations.
- HR Compliance and Policies: Managing HR policies and ensuring legal compliance.
Integrating HR with Other Business Functions
Human Resources doesn’t operate in isolation; it is closely connected with other departments such as
- IT – managing hardware, software access, and licenses
- Accounting – payroll, benefits, training budgets, and recruitment expenses
- Facilities Management – assigning workspaces and ensuring safety measures
What Does HR Work Typically Involve?
HR responsibilities in a small or mid-sized business (SMB) cover a broad range of tasks, including:
- Employee Records & Compliance: Managing employee information and ensuring compliance with federal, state, and local labor laws.
- Job Roles & Hiring: Defining job descriptions, recruiting, interviewing, and hiring new employees.
- Payroll & Compensation: Administering employee pay, benefits, and related processes.
- Employee Engagement & Communication: Keeping employees informed, motivated, and connected.
- Workplace Issues & Support: Assisting employees with work-related concerns and providing support as needed.
- Training & Development: Coordinating training programs and supporting employee growth.
- Health & Safety: Maintaining a safe and legally compliant work environment.
- Performance Management: Conducting employee reviews and providing feedback.
- Offboarding & Transitions: Managing resignations, terminations, and employee exits smoothly.
- HR is not just about paperwork—it’s about building a productive, compliant, and supportive workplace culture.
Essential Information for Effective People Management
Managing employees effectively requires accurate and accessible information. Good record-keeping not only supports HR processes but also helps managers make informed decisions without constantly searching through paperwork. Well-organized employee data ensures smoother operations, compliance, and better workforce planning.
Communication with Employees
- Effective communication—both formal and informal—is at the core of Human Resource Management (HRM).
- While HR professionals facilitate many processes, daily communication primarily happens between employees and their direct supervisors.
- Clear, ongoing communication strengthens employee engagement, professional development, and workplace collaboration.
Key Employee Information for HR and Managers
- Every department within a business—HR, supervisors, and payroll—requires different employee-related information.
- HR may need details on job history and training needs, while managers focus on skills and performance, and payroll requires compensation details.
- Keeping all this information structured ensures smooth HR processes and business operations.
Employee Records & Documentation
- Maintaining employee records throughout their employment, from hiring to exit.
- Tracking job details, employment contracts, and key HR documents (e.g., work equipment handover forms).
- Documenting selection and onboarding processes, including hiring decisions and adaptation periods.
Job Roles & Qualifications
- Defining job titles, responsibilities, and reporting structure.
- Assessing whether employees' skills match their roles and identifying gaps in qualifications.
- Ensuring employees have required certifications and meeting regulatory requirements.
Employee Importance & Succession Planning
- Identifying employees critical to business operations and their potential replacements.
- Planning for temporary or permanent absences and preparing alternative solutions.
Training & Development
- Tracking employee training history and future learning plans.
- Ensuring compliance with mandatory training regulations.
Employee Exit & Offboarding
- Managing the handover of work responsibilities, client contacts, and projects.
- Ensuring all company equipment is returned.
- Revoking access to company systems and privileges.
Organizing and maintaining this information helps businesses run efficiently, ensures compliance, and supports both employees and managers in their roles.
Finding Job Applicants
- One important part of HR is looking for job candidates.
- This means understanding the job requirements and the local job market to find the right people.
- Often, the best candidates are current employees, so internal hiring is also key.
- HR handles posting job openings and managing the hiring process from start to finish.
Recruitment & Onboarding
- Finding Candidates: Identifying and attracting the right people for your team.
- Hiring Process: Handling job applications, interviews, and evaluations.
- New Employee Onboarding: Welcoming new team members and helping them get started.
- Training & Orientation: Delivering essential training and explaining company policies.
Compensation & Benefits
- Managing employee payroll processing
- Handling payroll internally (with support from the company accountant) or outsourcing to a third-party provider
- Designing and managing compensation plans
- Overseeing benefits programs (e.g., health insurance, retirement plans)
- Ensuring compliance with federal and state employment laws
Employee Relations, Engagement & Communication
- Building Strong Employee Relationships: Actively managing workplace interactions and encouraging employee participation
- Listening & Addressing Concerns: Collecting employee feedback and resolving issues promptly
- Supporting Work & Life Balance: Assisting employees with personal and professional challenges
- Clear Communication: Promoting open and effective dialogue between staff and management
- Handling Complaints & Grievances: Managing workplace concerns fairly and professionally
- Creating a Positive Work Environment: Fostering engagement, job satisfaction, and team collaboration
Health & Safety
- Maintaining a Safe Workplace: Ensuring a healthy and hazard-free work environment.
- Collaborating Across Teams: Working with other departments to meet safety standards.
Staff Training & Development
- Keeping Employees Skilled & Engaged: Training helps employees grow while meeting company needs.
- Organizing Training & Upskilling: Providing learning opportunities to improve job skills.
- Maintaining Required Certifications: Ensuring employees stay qualified with necessary licenses and re-certifications.
Employee Performance Management
- Building a Performance System: Developing a simple process to evaluate, motivate, and reward your team.
- Regular Check-ins & Tracking Progress: Holding ongoing reviews and sharing feedback.
- Setting Clear Goals: Establishing easy-to-understand performance targets and expectations.
- Giving Feedback & Coaching: Providing helpful guidance to support employee growth.
- Spotting Development Opportunities: Identifying training needs and skill-building areas.
Talent Management
- Spotting and nurturing top talent
- Planning for leadership transitions
- Employee growth and coaching
Employee Departure & Offboarding
- Establishing a Smooth Exit Process: Ensuring a structured and professional offboarding experience.
- Managing Security & Compliance: Handling access removal, equipment return, and final paperwork securely.
Compliance with Regulations
- Following Employment Laws: Making sure all HR policies and paperwork follow federal and state laws.
- Employment Contracts & Documents: Properly handling employee contracts and related documents.
- Workplace Safety & Health: Meeting OSHA and other safety standards to protect employees.
- Preventing Discrimination & Harassment: Creating a fair, respectful, and inclusive workplace for everyone.
Why HR Compliance Matters
- HR is responsible for making sure the company follows all rules—this covers everything from hiring paperwork and employee safety to credentials and workplace rights. Staying compliant helps avoid legal trouble and boosts employee morale, leading to better retention and business success.
Which tools you can use to manage HR
It depends on what your company already uses. Here are a few common options for small and midsize U.S. businesses:
- Excel / Google Sheets: for simple employee lists, contact details, and onboarding or offboarding checklists
- Outlook / Google Calendar: for scheduling and reminders for trainings, license or certification renewals, and performance review dates
- Aptien: an all-in-one HR solution for onboarding, training tracking, document and certificate storage, and employee records
- Email + folders: for storing employment contracts, offer letters, certificates, and HR-related communications
How Aptien HR Simplifies Your HR Tasks
- Manage Employee Records: Store all employee information and documents in one easy-to-use system.
- Support Employee Growth: Monitor training, performance reviews, and career development to help your team succeed.
- Stay Compliant: Keep up with labor laws and regulations to protect your business from legal risks.
- Improve Team Communication: Make it easier to share information and address employee concerns for a better workplace.
Aptien HR streamlines these essential HR tasks, saving you time and helping your business stay organized and compliant.
Common HR Mistakes to Avoid in Small and Medium Businesses
- Unclear responsibilities – HR tasks remain unfinished
- Outdated record-keeping – risk of non-compliance with regulations
- Lack of structured onboarding – reduces new employee retention and success
- Ignoring performance reviews – hinders employee growth and development
Summary
HR tasks are more than just paperwork — they are essential for building a strong and motivated team. In a small business, simple processes and centralized record-keeping are usually enough. In a mid-sized business, clear policies, a dedicated HR team, and integrated tools become necessary. Aptien helps you connect HR with IT, asset management, and facilities management so you have a complete overview of every employee.