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From attraction and recruitment to retention and wellbeing, discover the essentials of human resource management and how to build a thriving workplace.

In this guide, we go back to basics and talk through everything HR beginners need to know. Download our comprehensive guide for: 

• The importance of HR in growing companies
• The basics of recruitment, onboarding, policies, performance and more
• The digital tools that can help you easily get started

Download the guide.

What is human resource management?

Human resource management is about attracting, retaining and managing employees. That’s the short version, anyway. These areas represent a world of challenges and complexities in HR management, from everyday details to overarching strategies. 

One side of HR management involves a strategic approach to managing a company’s workforce, optimising policies and processes for maximum effectiveness and supporting the overall goals of the business. The other side of HR management covers the many everyday operations of a business, keeping everything from payroll to performance management running smoothly. There’s also the wellbeing of employees, creating a workplace that’s productive, inclusive and supportive. 

This means your average HR department is always busy spinning a lot of plates, with one eye on day-to-day business and the other on future plans. 

Thankfully, these days there are tools to automate and streamline many of these responsibilities, with HR software to help manage payroll, recruitment, reporting and more. 

If you’re not sure where to start with HR management, download our free guide for the perfect introduction. You might be responsible for HR in a growing business, with more employees to manage and a company culture to properly establish. You might also be looking for ways to streamline and automate some processes so you can free up your time to focus on future planning and new strategies. As people management experts, we know how important it is to get the foundations right, taking your HR strategy forward on solid ground. 

Read on to find out more about HR management before downloading our free guide. 

Core functions of HR management

The operational functions of HR management cover a lot of areas, all aimed at supporting employees in their roles. These functions keep vital parts of the business running, creating a workplace that allows people to be productive. These core functions can include: 

• Attracting and recruiting new talent. This means marketing the business to prospective employees, seeking out talent to fill specific roles and processing applications and interviews. This is really an entire job in itself when it comes to attracting the best talent to the business, with larger companies having dedicated recruitment specialists in their HR teams.  
• Onboarding new hires. Ensuring all the proper legal procedures are completed and contracts are signed as part of the recruitment process. There are several important steps that need to be completed to make sure new hires are properly brought on board, not least introducing them to the company in general, showing them how things work and where to access information like annual leave.
• Training and employee performance. Sourcing and providing training programmes or other tools to support managers and the upskilling and development of their teams. Training is essential to the continual evolution of a business, improving and broadening the skillset of employees. This means being able to access more clients and contracts and ultimately make more money as a business. 
• Payroll and benefits. Making sure everyone gets their paycheck every month, as well as managing any company benefits or perks. It’s the reason why we have a job in the first place, after all. Salaries also need to be reviewed as people are promoted, as well as measured against industry standards to make sure the business is offering competitive compensation. 
• Employee wellbeing. Supporting staff with everything from mental health to workplace disputes and generally making sure everyone is happy and productive. Retention is hugely important for a healthy business, keeping employees satisfied with their roles and their workplace. High turnover is nearly always a sign of serious problems. 
• Workplace policies. This covers things like codes of conduct and the company’s approach to bullying or grievances, setting out clear policies and expectations for employee behaviour. Having clear policies in place helps to avoid a lot of problems further down the line, so make sure they’re easily accessible and everyone is aware of them through training. 
• Company culture. Shaping the work environment both physically and operationally to reflect the values of the business. Creating a positive work culture helps everyone feel engaged, included and valued, boosting retention and attracting new talent. Allowing a toxic culture to flourish will have the opposite effect.
• Misconduct. Supporting managers in dealing with employee misconduct such as lateness, behaviour or negligence. This is never an easy thing to deal with, but having proper systems in place can make a sticky situation much more manageable for everyone involved.   

Strategic human resource management

As well as the many day-to-day operations, there’s a key strategic element to human resource management. Strategic human resource management involves long-term planning around things like company culture, recruitment, promotions, employee policies and much more. The HR team supports the wider business strategy with a focus on employees and how they fit into the plan. 

While HR can sometimes feel like a lot of daily admin and just keeping systems running, it’s vital to have one eye on the future. The aims of the business – and your HR mission statement – will inform and be informed by this long-term thinking. There’s planning for a growing workforce, upskilling with new training strategies, expanding employee benefits, implementing new compliance policies and so much more.    

An HR strategy could include things like: 

• Creating a more inclusive workplace. Finding ways to increase diversity and inclusion through company policies and culture. Employees from a diverse range of backgrounds and experiences make for a stronger and more successful business, as well as making a more welcoming workplace. This could be through strategies like recruitment procedures or social events and celebrations.  
• Evolving policies and processes. Company policies form the backbone of a business’s culture, covering anything from parental leave to employee benefits. Setting up policies and procedures that create a fair and supportive workplace will help retain staff and keep the business thriving, though they should be regularly reviewed and updated as the needs of the business evolve. You can find a whole range of policy examples in our downloadable guide. 
• Improving the work environment. Working with business leaders to improve or adapt office space to meet changing needs or a growing workforce. This could be expanding an office with new meeting rooms or places for people to take calls or finding a completely new workspace. It can also just be finding the right chair or ensuring people have the equipment they need to work from home. 
• Analysing current systems. Monitoring and reviewing current policies to see what works and what doesn’t, facilitating future development. Every system has an expiration date, so continual analysis is a key part of any good HR strategy. Don’t be afraid of change – plan to make it. 
• Planning for staff changes. This could be anything from preparing for a new CEO to creating new teams or departments as the business grows. A small business may end up as a medium or large business, adding teams, reorganising structures and creating new leadership roles.  
• Attaining accreditations. Security certificates and other compliance accreditations can be essential for a growing business. They allow you to land bigger and more prestigious clients with higher demands on how their information is handled.

HR metrics and analytics

HR management only works when it’s supported by accurate and reliable data. This means using robust people analytics to inform decision-making, whether that’s staff turnover, recruitment demographics or training outcomes. Only through analysing the data can HR professionals figure out what’s working and what isn’t, uncovering hidden trends that might drive future strategies and policies. 

HR metrics are an endless mine of valuable information. You can see if new policies or processes are having the desired impact or if employee satisfaction is trending up or down. This can help you spot early warning signs of unhappy teams or individuals and do something about it before it becomes a crisis. 

Getting those key stakeholders on board with your new plan means backing up your ideas with easily digestible insights, as well as showing how new policies are performing once they’re implemented. Reliable data is essential to get new ideas and strategies off the ground.

Find out more about HR metrics and how to use them in our free downloadable guide. 

The role of e-HRM and AI in modern HR

So much of HR management is about data and how to analyse and use it, which is why e-HRM and AI can be such powerful tools. Being able to quickly visualise complex data gives HR professionals the power to make decisions and pitch strategies to company leadership. This is why HR software is so important. 

e-HRM also makes life easier for employees, allowing them to find important information and track things like annual leave with ease. They can also easily access and track training with an employee learning management system, whether that’s upskilling or learning company policies. 

AI can provide automation for HR management, freeing up valuable time to focus on other tasks. This could be automatic CV screening, quickly crafting job descriptions or summarising interview notes for manager review. AI can also take the burden when employees have questions like ‘what’s our remote working policy?’, quickly providing answers through AI chat. 

Find out more about Hero AI, our HR assistant tool that can help to free up your time and streamline everyday tasks. 

HR policies and compliance in the UK

HR compliance covers the legal commitments of a business, with regard to things like employment laws, recruitment processes and employee pensions. Compliance can come up as part of many different processes, so it’s always a good idea to have an HR compliance checklist to refer to. This can include: 

• Reviewing employment contracts 
• Conducting right-to-work checks
• Adhering to data protection laws 
• Health and safety assessments 
• Compliance with anti-discrimination laws

Aside from having the right processes in place, ensuring compliance is also about wrangling employees to review and acknowledge policies or undertake training to learn about their responsibilities. HR software can really help here, keeping track of who’s completed what and who needs reminding.  

It’s yet another plate for HR professionals to keep spinning, but it’s a vital one to get under control to avoid running into serious issues. Non-compliance with workplace regulations can open up the business to financial risks, not to mention the loss of reputation and trust with current and potential clients. 

Legal compliance can be a complex world to navigate, but we can help cover the essentials with our guide to HR compliance in the UK. 

How to get started with HR in your business

It can feel overwhelming to think about all these different elements when you’re just starting out on your HR management journey, but fear not. We’re here to help get you on the right track with these 5 simple steps and our free downloadable guide. 

Set yourself up for success with a solid foundation of HR capabilities with these core steps: 

1. Analyse. Always start by analysing what you have, including current policies and structures, HR data and tools. You have to know where you’re starting from to see how to get to your destination. 
2. Organise. This is the core of HR management. Make use of HR software to record and manage information, creating procedures and systems for recruitment, training, promotions and company policies. Being organised is key to keeping control of so many moving parts. 
3. Automate. There’ll never be enough time in the day to achieve everything you want, so automate wherever possible using HR tools and AI. Devote your time to the most valuable tasks to move your strategy forward and don’t get lost in the admin. 
4. Strategise. Getting everyday operations running smoothly is only half the job. Plan for the future, creating strategies that align with your mission statement and the goals of the business. 
5. Review. Any good system needs to be monitored for successes or failures, with processes and policies updated as the business evolves. Don’t be afraid to change plans that aren’t working, using valuable data to support your decisions. 

Download your free guide now by filling in the form.