How do human resource professionals provide an organization with a valuable advantage?

Why Human Resource Management Is Important

Employees are the foundation of every successful business. This is why human resource (HR) management is so important.

The HR department performs a wide variety of duties and is responsible for helping employees feel safe, valued and properly supported. Exceptional human resource management ensures that the HR department runs smoothly and continues to evolve over time.

If this sounds interesting to you and you’re curious about  a career inhuman resource management, read on to learn why it’s so valuable in the professional world.

What is Human Resource Management?

The simplest human resource description would be to say it’s the department of a company or organization that handles the relationship between employees and leadership.

Human resource management (HRM) is the sector of HR that oversees these departments.

HR covers a number of positions, responsibilities, and aspects of company efficiency and staff well-being—and each area of human resources requires strong leadership from an experienced manager.

Some of the most important responsibilities within the HRM department include:

Hiring and Training New Employees

An HR professional holding a management position is often in charge of recruiting, hiring, and training new employees. This means the HR team is responsible for finding candidates who meet the necessary qualifications for specified positions and fully vetting a company’s hires.

Human resource managers are also expected to embrace and promote diversity among staff, orient team members to their new work environment, and ensure healthy interactions between employees and organizational leadership.

But what does a human resource manager do exactly when it comes to hiring and training? Some of the most common tasks for this type of HR manager may include:

  • Conducting interviews and reading resumes
  • Performing background checks on applicants
  • Overseeing or leading training procedures
  • Implementing new training techniques
  • Writing job descriptions, posting job listings, and recruiting potential candidates
  • Making a good impression on behalf of the company (HR is usually the first department candidates will meet)

The bottom line –An HR professional is often the face of the company for potential new employees. Recruitment, hiring, and training policies are supervised and improved upon with the help of HR managers.

Keeping Employees Safe and Happy

A human resource department is also in charge of keeping employees safe, healthy, and satisfied. With proper HR management, workplace policies keep up with  necessary protective measures and implementation and provide solutions to  issues between team members, avoiding risk for the company and its employees.

Daily duties for an HR manager who specializes in employee relations may include:

  • Creating workplace safety policies
  • Ensuring the organization follows federal and state occupational laws
  • Addressing employee concerns and complaints
  • Preventing and dismantling harassment or discrimination in the workplace
  • Managing employee relationships
  • Facilitating communication between leadership and employees

The bottom line – HR managers are in charge of many duties, but employee well-being should always remain a top priority. As a human resource manager, you’ll spend a lot of time speaking to employees, listening to concerns, and managing workplace relationships. The main goal of a successful, strategic HRM should be to ensure the staff feels safe, respected, and heard at all times.

Managing Company Risk

The HR department works with organizational leadership to help manage risk and compliance. Human resource managers should be well-versed in business law, ethics, statistics, and problem-solving in order to help manage their company’s risk.

As an HR manager, you may be put in charge of the following risk management responsibilities:

  • Analyzing statistical risk using company data
  • Addressing and preventing potential lawsuits
  • Supervising firing practices
  • Properly training other managers
  • Implementing diversity and Title IX training
  • Protecting the organization's data and upholding privacy for sensitive information
  • Vetting new hires and improving hiring procedures

The bottom line – Human resource management is intended to protect the company and its employees. As a risk management specialist, you’ll help manage your company’s risk  in a manner that involves statistical analysis, knowledge of business law, and overall improvement of company policies and practices.

Human resource management is the organizational function that manages all of the issues related to the people in an organization. That includes but is not limited to compensation, recruitment, and hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, policy administration, and training. 

Learn more about what human resource management is and how it works.

What Is Human Resource Management?

Human resource management is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Done well, it enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives.

The department members provide the knowledge, necessary tools, training, administrative services, coaching, legal and management advice, and talent management oversight that the rest of the organization needs for successful operation. 

Alternate name: Human capital management

Acronym: HRM

Watch Now: Why HR Matters Now More Than Ever

How Does Human Resource Management Work?

HRM staff members are partially responsible for ensuring that the organization has an overall mission, vision, and values that are shared and provide an overarching reason for employees to want to work for their organization. These elements can be inspirational and help employees feel as if they are part of something that is bigger than themselves.

Additional activities sponsored by HRM can include employee and community outreach. They are frequent mentors and members of employee teams that address philanthropic giving, employee engagement activities, and events that involve employee families.

Note

Human resources management has evolved over the years, and it now usually involves contributing to a company's strategic direction and using metrics to measure efforts and demonstrate value.

HRM functions are also performed by line managers who are directly responsible for the engagement, contribution, and productivity of their reporting staff members. In a fully integrated talent management system, the managers play a significant role in and take ownership of responsibility for the recruitment process. They are also responsible for the ongoing development of and retention of superior employees.

HRM is moving away from traditional personnel, administration, and transactional roles, which are increasingly outsourced. The HRM function is now expected to add value to the strategic utilization of employees and to ensure that employee programs recommended and implemented impact the business in positive measurable ways.

Employees who work in HRM must also help keep their employer and company safe from lawsuits and the resulting workplace chaos. They must perform a balancing act to serve all of an organization's stakeholders: customers, executives, owners, managers, employees, and stockholders.

Requirements for Entering Human Resource Management

Those wishing to enter the field of HRM usually need at least a bachelor's degree in human resource management or a related field, such as business management. Some employers may also require candidates to a master's degree in business administration, human resources, or labor relations.

Special certification isn't always necessary to get a job in HRM, but it can help candidates stand out, and some employers may require it. Several professional associations offer these types of certifications:

  • The Society for Human Resource Management (SHRM) offers the SHRM Certified Professional and SHRM Senior Certified Professional programs.
  • The HR Certification Institute (HRCI) offers several certifications, including Associate Professional in Human Resources, Professional in Human Resources, Senior Professional in Human Resources, and Global Professional in Human Resources. HRCI also offers micro-credential programs on several topics.
  • WorldatWork also offers several certifications in the categories of Compensation, Executive Compensation, Sales Compensation, and Benefits.
  • International Foundation of Employee Benefit Plans offers certificates in many areas as well, including benefits and health and welfare plans.

The amount of experience needed depends on the preference of the employer, but most manager-level HRM positions require several years in the field.

The soft skills employers usually require in HRM candidates include leadership, communication, decision-making, organizational, and interpersonal skills.

Key Takeaways

  • Human resource management (HRM) is the function of an organization that handles everything having to do with its people.
  • The HRM department enables employees to contribute effectively and productively.
  • The HRM function has evolved, and it's often expected to add value to the strategic direction of the company.
  • Certification isn't required to get a job in HRM, but it can give candidates an advantage.

How do human resources professionals provide an organization with sustainable competitive advantage?

Human Resources managers can help build a solid competitive advantage through their personnel management policies. Employee performance and a high level of engagement is an advantage that often results in better customer service and may get more clients than those organizations that have little or no CA at all.

How does human resources benefit an organization?

An effective HRM allows organizations to tackle human resource issues strategically. HRM supports in attracting and retaining competent employees, helps the organization's leaders and employees in adapting to organizational change, and enables the adoption of technology.

How does human resources provide a source for competitive advantage?

HR is important as it helps in creating strong competitive advantage through their personnel management policies – productivity and employee happiness is an advantage that often results in superior customer service, which helps drive sales.