Top 10 key functions of HRM

Find out top 10 key functions of HRM

Find out top 10 key functions of HRM

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Companies today have been following a people-centric approach because it enhances employee performance. Human resource management works wonders in helping businesses reach their goals. HR departments have many vital responsibilities: recruitment, training, development, and performance management. If you work in HR, you must know these roles and how they can work together for the company’s growth purpose. These HRM functions play a significant role in the organization’s overall success. When employees improve their performance, the company will automatically grow and succeed. This blog provides insight into some essential human resource management functions contributing to thriving businesses. Keep reading:

What is Human Resources?

Human resource management oversees and manages a company’s resources, including hiring, training employees, retention, compensation, performance, and appraisals. HRM’s main objective is to maximize an employee’s growth so that the organization can attain a favourable outcome too. Businesses must acquire and retain proficient employees, leading to a productive workforce.

Key functions of a human resource management

Let’s take a look at some of the most important functions of HRM:

1.   Planning

A company’s success can be affected by many factors, including planning human resources. A well-run human resource department is crucial to maintaining a competitive advantage in any organization containing people; managing people effectively is an essential job function of HR today. Planning involves analyzing the existing workforce, finding gaps in expertise, and creating strategies to develop required skills. With the help of effective HR planning, companies can align their workforce with their objectives.

2.   Recruitment

One of the most important human resource functions is recruitment and selection. The primary aim of HRM is to acquire and retain competent employees to help the company reach the heights of success. It all begins with hiring appropriate employees from the list of applicants for a particular job role. An HRM does a great job of finding suitable candidates for an interview and selection. Different recruitment processes are involved, including the screening process and various rounds of interviews. Nowadays, companies are switching to video interviewing in order to make the process convenient for both parties.

3.   Training and Development

Providing required training to the selected applicants is a highly crucial role of HR. We all know how well-trained employees can do wonders for the organization’s success. HRM again has a great role in preparing employees for more significant responsibilities. The HR should ensure that the new candidates obtain all the necessary skills and knowledge to perform better. It improves the entire functionality of the workforce, resulting in better outcomes. After all, a company that gives immense development opportunities to its employees is regarded as a perfect company.

4.   Performance Management

One important function of HRM is the productive performance management of employees. It guarantees that the employees are performing in a way that helps achieve the organization’s objectives. Supervision, clear goals, and feedback are essential to performance management. The best part is that performance management is not only about employee performance. It also manages the work of the department and the entire organization.

5.   Career Path

A significant responsibility of HR management is to provide employees with the right career guidance. They need to give a proper path to the employees and let them know how they will grow in the organization. When a candidate joins a company, they look for growth opportunities. If they find a clear career path, then there are high chances of certainty. Hence, providing an organized career path is one of the crucial human resource responsibilities.

6.   Rewards and Recognition

Rewarding employees for their accomplishments is one primary function of HRM. With the help of rewards and recognition, you can attract and retain top talent in the firm. This function is essential so employees feel valued and perform even better in the future. Companies have started taking different initiatives to reduce attrition rates.

7.   Employee Engagement

Whether the organization is small or large, employee engagement must be prioritized. If employees are engaged, it somewhere satisfies them, hence ensuring better productivity. The efficient management of employee engagement also helps in improving retention rates. HRM has a significant role to play here. They should make sure that there is proper communication and engagement between all.

8.   Compensation and Benefits

It is an undeniable fact that everyone works for salaries. Hence, the HRM should prepare generous packages to attract more employees without damaging the company’s budget. The main goal behind this is to provide a fair salary to everyone. Due to significant compensation, many employees work with maximum productivity. Also, paying well to the employees helps the organization make a good image in the market.

9.   Personal Support

HRM is vital in helping employees with their personal problems that might hinder their workflow. Since COVID-19, the requirement for support has grown, so HR departments should be available to help employees. For instance, companies provided extra leaves or medical insurance to many people during the pandemic.

10. Safety and Health Standards

Human resource departments often adhere to health and safety regulations to protect employees and companies against accidents. HR must make these regulations part of their company’s HR culture so everybody stays safe and unharmed.


The critical functions above are mandatory for every organization’s human resource management to create a productive workspace. As a professional HR, you must know the various skill sets required to perform these functions. When it comes to this field, knowledge shouldn’t be limited. Today, the workplace is rapidly evolving, so you need to stay updated with all the current trends in the market