What is the role of HR, and how does it support employers?

2nd September 2024

What is the role of HR, and how does it support employers? 

Human resources or HR departments take care of a number of responsibilities within a business, such as handling onboarding of new employees, upskilling managers, and creating and maintaining employment policies – ensuring they are compliant with ever-changing employment law. 

In large businesses with a huge number of employees, having an in-house HR team is extremely common. However, for smaller businesses, having someone take care of HR in-house isn’t cost-effective. Having outsourced HR support can be more effective but, first, it’s important to understand the role that HR can play within your organisation and how it can support you as an employer. 

What does HR do? 

Human resources is a critical function within any organisation and is responsible for managing the employee lifecycle. But what exactly does HR do? Here are some of the core responsibilities typically associated with HR: 

Onboarding 

HR can often support the entire recruitment process, from advising on job adverts and screening candidates to ensuring that the company doesn’t discriminate and is compliant with the Equality Act 2010. They ensure that the right talent is brought into your business, ensuring that they align with your business goals and culture. Once hired, HR facilitates the onboarding process. This involves completing ‘rights to work checks’, creating important documents, such as employment contracts and handbooks, and helps new employees integrate smoothly into their roles.  

Employee relations 

HR can often act as a mediator between employees and employers to address grievances, conflicts, while also equipping managers with the skills and empowerment to ensure that employees are looked after whilst following business guidelines. They implement policies that promote fair treatment and foster a positive working environment. 

Compliance and legal issues

One essential role of HR is ensuring that your business complies with employment laws and regulations. They stay ahead of changes in legislation and implement necessary adjustments to policies and procedures, protecting your business from legal disputes and fines. Changes in legislation can happen regularly because, unlike some other areas of law, case law in the UK can directly influence policies and practices immediately following a tribunal judgment.

Training and development 

HR oversees the training and development of employees by organising training programs and professional development opportunities. This not only enhances employee skills but also boosts morale and job satisfaction. 

Performance management 

HR develops and manages performance appraisal systems, helping to set objectives, evaluate employee performance, and provide feedback. This process is vital for employee growth and aligning individual goals with your business objectives. 

How can HR support employers? 

HR can help you to manage all of the above elements of your business effectively to ensure your business and employee operations run smoothly. Having an effective HR partner in place can support you as an employer in the following ways: 

Improved business performance and staff productivity 

By facilitating staff training and development, performance management and absence management, a HR function can help to manage and drive the performance of your employees which will have a positive impact on the productivity and efficiency of your business overall. 

Improved compliance 

HR experts will help you to ensure that your business complies with all relevant employment laws and regulations. This minimises the risk of costly legal issues triggered by employee tribunals and protects your business from unforeseen costs. Having an external HR partner can often assist businesses and organisations that require certification and external verification. It will also help you to maintain a fair and compliant workplace in which you and your employees are supported and protected. 

Enhanced employee satisfaction 

By effectively managing, training, and having fit-for-purpose policies and employee relations within your business, HR can help you to create a positive work environment. Satisfied employees are more productive and less likely to leave, reducing staff turnover and the associated costs. This allows you to retain top talent and ensure that your business is as effective and profitable as possible. 

Focus on core business 

With HR handling the administrative and compliance aspects of employee management, as a business owner, you can focus on your core business activities. This leads to increased efficiency and allows you to concentrate on what you do best – growing your business. 

Strategic planning 

Effective HR management can contribute to strategic planning across the business. Understanding workforce trends, performance metrics, your company culture, and the employees within your business allows you to make strategic decisions that can help drive business growth. 

Should you outsource your HR function? 

For SMEs, outsourcing HR functions can be highly beneficial. An outsourced HR company can provide the expertise and resources you need without committing to the costs and long-term commitment associated with an in-house team. 

Here’s why you should think about outsourcing your HR needs:

  • Expertise: You’ll have access to experienced HR professionals who stay updated with the latest trends and legal changes. 
  • Scalability: The HR services you require can be scaled up or down based on your business needs, providing flexibility. 
  • Cost savings: Outsourcing HR helps to avoid the overhead costs of maintaining a full-time HR department. 
  • Focus on growth: Free up time and resources to focus on business growth and development.

You can read more about HR outsourcing, the advantages of these companies doing your HR admin, and how it works here: Why outsource your HR needs? 

Professional HR Consulting by Trusted HR 

If your business needs help with an HR issue, problem or project, our team of professional HR consultants can help. 

Whether you need short, medium or long-term support, our service is the perfect solution. We provide valuable, professional consultancy to a range of organisations across the UK. 

We can help with: 

Request a consultation to learn more about how our consultancy service can help your organisation succeed. Trusted HR offers a free, 45-minute, no-obligation consultation on any HR issue to help you get started.