Modern HR is a cross-functional function that touches every aspect of the business, from finance to sales. In HR there are basic blocks of expertise like areas of HR which include recruiting for diversity and inclusion and D&I tools.
The first function is recruitment.
This includes finding and interviewing candidates, hiring and onboarding staff. A recruiter must evaluate not only professional experience, but also managerial skills and personal characteristics, and must understand business.
Unprofessional recruitment can lead to disastrous consequences.
The second function is personnel performance.
We evaluate two things: actual results and competencies.
Outcomes are tasks that employees perform on a regular basis. To understand whether a specialist achieves results, one must first develop key performance indicators (KPIs) that measure performance.
And competencies are knowledge, abilities, skills that are manifested in behavior. Hard skills are essential for completing work tasks as well as for business development. For a programmer, these are programming languages, for a lawyer, knowledge of the law, for a hairdresser, the ability to cut hair.
Soft skills, often known as personal attributes, are competencies that are commonly referred to as personal traits. For example, communication or business management. The importance of soft skills is often underestimated. A common example from the IT business. A programmer who achieves KPIs brilliantly is promoted to the head of the development team.
The third function is training and development.
There are many different systems: corporate university, external training, internal training system. Every business chooses its own path.
The fourth function is the system of salaries, bonuses, and compensations (compensation & benefits).
Many HR managers do not know how to count bonuses. Firstly, there is a bias, and secondly, managers do not know if the salary and bonus system that they offer is competitive in the market and strives to save money. As a result, employees can go to competitors only because of the salary.
This does not always imply that wages should increase if they are below market prices. You can compensate for the level of salaries with something else. For example, medical insurance or product discounts.
To perform this function effectively, an HR manager must understand the business. He must understand what the company’s business model is, what marginality a particular product or service has.
If he does not understand this, he may offer a bonus system that harms the company. For example, a company loses money yet required to pay bonuses owing to a flaw in the system.
The fifth function is corporate culture & internal communication.
Corporate culture includes such things as the mission and vision of the company, social responsibility. Roughly speaking, the company must answer through all these theses to the key question: how does it differ from others in the market, what value does it bring to society and the country. This information needs conveyed to the employees as they are the carriers of the corporate culture.
Every action within the framework of corporate culture and social responsibility must coincide with the marketing strategy. Otherwise, it is a waste of money that will not support the image of the company.
