The Top 6 Functions of Human Resource Management for 2024

The world of work is constantly evolving, and the HR landscape needs to adapt accordingly. These are just some of the trends we can see at play: 

• The rise of remote work: Managing a distributed workforce presents unique challenges. HR teams need to find new ways to foster engagement and ensure high levels of productivity across teams and departments.

• Focusing on employee wellbeing: Awareness around mental health is only becoming more pronounced. Organisations have come to recognise the importance of employee wellbeing programmes.

• Data-driven decision making: HR professionals are increasingly leveraging data to make informed decisions regarding talent acquisition, performance management and other critical areas.

• Shifting demographics: A multi-generational workforce requires HR to adapt policies and practices to cater to diverse needs and expectations. This will only become more important with Generation Alpha on the horizon. 

These trends alone may seem daunting. But, HR teams also have to shoulder the responsibility of ensuring that day-to-day operations run smoothly, too. 

That makes understanding and setting forth a strong foundation for the functions of human resources management all the more important. 

So, let’s dive into each of the ones that we see playing a big role in the year ahead. 

Human resources management refers to the management of people in an organisation along the employee lifecycle. At each stage, your human resources team is going to need to manage them in different ways. 

But, digging deeper, it is helpful to think of human resources management in two ways: 

1. Operations - How your organisation needs to work

2. Functions - How your organisation chooses to work 

The fact is that your operations allow you to focus on your functions. They lay the foundation to manage people in a focused way, which allows the functioning of your department when it comes to changes or strategic projects. 

As we explore each function, we need to think about two things: 

• Why it might matter to your unique organisation (the function)

• How an HR software or tech stack could help operationalise it (the operations)

Without further ado, let’s dive in…

Why it matters: Because aligning your talent with your goals is crucial for long-term success. Having the right skills and expertise at the right time ensures your organisation can adapt to changing market conditions and seize new opportunities.

How HR software can help: Leverage workforce planning to analyse historical data, market trends and future business needs. This can allow you to:

• Predict future needs: Anticipate skill gaps and identify critical roles well in advance, allowing for proactive recruitment and development strategies.

• Align talent with business goals: Ensure your talent strategy supports your strategic objectives by identifying the competencies needed to achieve them.

• Optimise resource allocation: Allocate resources strategically by identifying potential areas for reskilling or upskilling existing employees.

Why it matters: Attracting and retaining top talent is critical for any organisation's success. A strong onboarding process sets new hires up for success from day one, fostering engagement and reducing turnover.

How HR software can help: Optimise your recruitment and onboarding process through features like:

• Applicant tracking systems (ATS): Manage applications efficiently, improve candidate experience and identify top talent quickly.

• Automated interview scheduling: Save time and improve candidate experience by offering flexible scheduling options.

• Customisable, smooth onboarding: Automate tasks while personalising the new hire experience, and ensure all paperwork is completed efficiently.

Why it matters: Employee performance directly impacts your organisation's bottom line. Providing ongoing feedback and opportunities for development motivates employees, improves performance and fosters a culture of learning and growth.

How HR software can help: Streamline performance management and development through features like:

• Automated review cycles: Develop and customise review cycles that run like clockwork. Ensure that a performance chat is never missed again. 

• Goal setting and tracking: Set clear and measurable goals for individuals and teams, track progress and provide feedback throughout the year.

• 360-degree feedback: Gather multi-source feedback from colleagues to gain a well-rounded perspective on employee performance.

• Documenting training: Provide employees with access to a variety of training and ensure they complete it on a reasonable timeline. 

Why it matters: Competitive compensation and benefits packages are essential for attracting and retaining top talent. Additionally, ensuring accurate and timely payroll processing is crucial for employee satisfaction and compliance.

How HR software can help: Simplify and automate complex tasks associated with compensation and benefits administration, including:

• Payroll processing: Ensure accurate and timely payments for employees, reducing administrative burden and minimising the risk of errors.

• Benefits enrolment: Streamline the process for employees to choose and enrol in benefits plans, improving employee satisfaction and reducing errors.

• Salary reviews: Create salary reviews that are easy to share, track and approve. Empower managers to make informed compensation decisions.

Why it matters: Maintaining positive employee relations and ensuring compliance with labour laws and regulations are critical for any organisation. Addressing employee concerns promptly, fostering a fair and respectful work environment and adhering to legal requirements are essential for building trust and mitigating legal risks.

How HR software can help: Manage employee relations and compliance effectively by leveraging features like:

• Case management: Track and manage employee concerns, complaints, and disciplinary actions efficiently through a whistleblowing platform.

• Document management: Securely store and manage employee documents, ensuring easy access and compliance with record-keeping regulations.

• Compliance tools: Access relevant regulations and updates, stay informed of changes in legal requirements and mitigate any and all compliance risks.

Why it matters: A highly engaged workforce is more productive, satisfied and contributes significantly to organisational success. Effective communication is key to fostering engagement, building trust, and keeping employees informed about company goals and initiatives.

How HR software can help: Strengthen employee engagement and communication through features like:

• Pulse surveys: Gather real-time feedback from employees on various aspects of work life, allowing you to identify areas for improvement and address employee concerns promptly.

• Feedback and goals: Recognise and reward employee achievements through feedback and goal attainment, fostering a culture of appreciation and motivating employees to contribute their best.

As an HR professional, you’re expected to wear many hats. The functions of human resources management prove that to be true. 

But, by leveraging HR software you can automate tedious tasks, gain valuable insights from data and free up your time to focus on strategic initiatives and building strong relationships with your employees.

Personio’s HR software solution is built to make an immediate impact for your team. With many great features, flawless implementation and next-level support, we can help all of your functions of human resources management thrive. 

Take the next step: See how our product works and then speak with one of our helpful experts today.