What is HRM (Human Resource Management)

What is HRM

Basic Pillars of HRM

• Recruitment and Onboarding: Attracting, hiring, and training new employees.
• Job requirements: Defining qualification and other job requirements
• Compensation and Benefits: Managing pay, benefits, and compliance with labor laws.
• Employee Relations and Communication: Facilitating communication and addressing complaints.
• Employee Development: Identifying training needs and developing career paths.
• Performance Management: Setting goals, tasks and evaluating performance, providing feedback.
• Health and Safety: Ensuring workplace safety and compliance with health regulations.
• HR Administration: Overseeing HR policies and ensuring legal compliance.

So, what does HR work typically involve?

• Personnel Administration: Maintaining employee information required by legislation and necessary for developing and sustaining an active relationship with employees.
• Job Definition: Defining job roles and employee requirements.
• Recruitment: Searching, selecting, and recruiting new staff or identifying talent within the organization.
• Payroll and Remuneration: Managing payroll, remuneration, and processing.
• Employee Engagement and Communication: Fostering employee engagement and ensuring effective communication.
• Employee Life Situations: Addressing various employee life situations.
• Employee Development and Training: Facilitating employee development and training programs.
• Health and Safety: Ensuring employee health and safety.
• Performance Appraisal: Conducting employee performance appraisals.
• Employee Exit: Managing employee exits.
• Regulatory Compliance: Ensuring compliance with relevant regulations.

Information required for people management, personnel administration

Managing people cannot be done without good information on which to base decision-making and management. Well-managed information also improves the work of managers, who "do not have to constantly search through papers and files". Good quality and accessible information is therefore an essential foundation for managing people smoothly, correctly, and well.

The Pillars of HRM: Information and Communication

Effective communication, both formal and informal, is fundamental to Human Resources Management (HRM). While HR responsibilities and communication are not limited to HR staff, they primarily occur between employees and their line managers. This interaction is crucial for communication, personal development, and overall involvement throughout employment.

All processes in companies revolve around people and so there is a lot of information around people and all of it has its own meaning. The HR manager needs his information, the supervisor needs something different and the payroll accountant needs something else entirely. It is good to know what the employee does, what the job requirements are, what areas they should improve in, what they should add to their training or qualifications. Information about the worker's remuneration - whether regular pay or irregular bonuses - is important for HR work. All this should be known by both the HR manager and the supervisor. Information about people can be divided into the following headings:

Records and documents

• Management of the personnel agenda, personnel records and documentation around employees
• Handles the complete life cycle of the employee and his/her employment matters (creation, progress and termination of the employment relationship)
• Creating job descriptions

When did the person get hired, under what circumstances and why

• When was the employee selected for the position and when did he/she start
  
• Documents (e.g. employment contract, handover report for work equipment, etc.)
  
• Information about the selection procedure, adaptation period, validity of the contract
• What position did the employee apply for and what were his/her strengths in the selection process
  

What is the job classification of the employee

• What job or position is the person assigned to
• Does the job match the person's skills?
  
• What qualifications are missing
• Who is their superior
• Who has them assigned
• Who is responsible for them

What is the required level of qualification of the employee

• What is the current status of their qualifications in relation to their job title
• What the job title or legislation or other regulation requires
• Does the employee have all the necessary certifications for his/her job classification
• Does the employee meet the necessary qualifications and all requirements?
• What qualifications an employee must complete
  

How is a person critical to the functioning of processes

• Is a particular person critical to the functioning of the organization?
• Who is their substitute? What is the probability of such a situation?
• What are the alternatives?

How employee training and development works

• Who is responsible for development and training, and what are their training plans
• When was the last time a person received training, what's in store for them in the future
• The requirements of compulsory education legislation are met

Employee offboarding

• What to prepare or do when an employee leaves
• Is there a trained or prepared substitute? (succession planning)
• What work has to be handed over, where the employee is involved (contracts, contacts with customers)
• What work equipment must be returned or handed over?
• What privileges must be revoked?

Searching for Job Applicants

• One of the fundamentals of human resource management is the search for job applicants.
• This requires knowledge of the needs of the job as well as knowledge of the labour market to find attractive candidates.
• Often, finding the right candidate is done through a talent search within the organization itself.
• HR is responsible for advertising vacancies

Recruitment and Onboarding

• Search process for job applicants and candidates
• Recruitment and admission process
• Attracting and hiring qualified candidates
• Conducting interviews and assessments
• Onboarding new employees
• Providing necessary training and orientation

Compensation and Benefits

• Ensuring employee payroll processing
• Processing of the payroll agenda is in-house (handing over to the company accountant) or with the help of an external company
• Developing and administering compensation plans
• Managing benefits programs (e.g., healthcare, retirement plans)
• Ensuring compliance with employment laws and regulations

Employee Relations, Engagement and Communication

• Active management of employee relations
• Feedback from employees and escalation of their requests, topics and issues
• Resolving employees' life and work situations
• Managing employee communications and feedback
• Handling employee complaints and grievances
• Fostering a positive work environment
• Promoting employee engagement and satisfaction

Health and safety

• Ensures a healthy working environment
• Cooperates with other organizational units to ensure a suitable working environment

Staff Training and Development

• Employee training and development is important to maintain employee satisfaction and alignment with the needs of the company.
• Ensuring staff training and development
• Organization of training and education and up-skilling of employees
• Maintaining the necessary qualifications (certificates, regular re-testing)

Employee Performance Management

• Setting up and maintaining a system of employee evaluation, motivation and remuneration
• Conducting regular interviews and monitoring performance
• Setting performance goals and expectations
• Conducting performance reviews
• Providing feedback and coaching
• Identifying training and development needs

Talent Management:

• Identifying and developing high-potential employees
• Succession planning
• Career development and coaching

Employee's departure and offboarding

• Setting up the right employee departure process
• Managing the quality and safety of employee departures

Compliance with Regulations

• Legal compliance of HR processes and documents in the company
• Employment contracts and other documents relating to employment relations
• Ensuring compliance with employment laws and regulations
• Managing workplace safety and health
• Preventing discrimination and harassment

The Importance of HR Compliance

HR must also ensure compliance with all relevant regulations and legislative requirements, including employment contracts, workplace health and safety, and employee qualifications. Effective HR practices lead to better employee care and higher satisfaction, ultimately aiming for long-term employee contentment.

Aptien HR streamline your HRM procesess

• Manage employee records: Maintain a centralized database of employee information and documents.
• Plan employee development: Create career paths, track training, and facilitate performance reviews.
• Ensure legal compliance: Stay up-to-date with labor laws and regulations.
• Enhance employee communication: Improve communication channels and address employee concerns effectively.