Most Important HR Processes in HR Functions
Human Resources usually organizes processes into several functional groups. The landing of the individual process is typically driven by the HR Model that clearly describes roles and responsibilities of functional HR managers. It is an excellent tool that clarifies the life in Human Resources. It is a translated HR Strategy into different functions how they can contribute to building the better organization.
One of the crucial processes is also the HR Process Management to ensure that HR runs at optimum speed, headcount, and costs. Most Human Resources Organizations is not great in process management. However, they have to adopt some methodology to manage activities of the department. Otherwise, HR would be just chaos.
Modern End-to-End HR Process Management
Human Resources needs to add value to the business operations. It is a function responsible for the people management practices, facilitates the formation of the corporate culture and enables change management projects in the organization. It cannot act its role in the business properly without the right set up of HR Processes. Recently, Human Resources has not been focused on processes at all.
The procedures were complicated, chaotic and missed any essential measurement of the performance and quality. The strategic answer is the HR Process Management. It allows the transformation of HR into a real contributing business partner that has the performance, innovation and engagement of employees as a core and primary HR objective.
All job applicants assess the quality and performance of HR processes before they make a final decision to join or refuse the job offer. The performance of Human Resources has a significant impact on Employer Branding. It is one of the key reasons to introduce the proper and high-performance HR Process Management.
The company with a positive image in the job market has a significant competitive advantage and hires a better quality candidates. Candidates gain the first substantial and real customer experience in the interaction with the business, and they include their impressions into the decision-making process.
Human Resources is an important business partner in the organization. However, it is also the control function. HR needs to implement the right balance between the control environment and the freedom of managers and employees to act. Too much control makes processes slow, expensive and blocks innovations.
HR designs processes that incorporate the risk management and compliance with the law and other internal policies and rules. However, the smooth and efficient HR Process should always be the ultimate goal without any compromises. The effective HR Process Management is an excellent tool to introduce, manage and improve procedures and policies in Human Resources. No business oriented high-performance HR Strategy can exist without the process management.
The HR Process Management and processes, in general, are closely linked to the HR Measurement and HR KPIs and HR Dashboards. The measurement of the performance and quality is the only way how Human Resources can focus on the key issues and challenges. Moreover, HR can provide the evidence how it adds value to the business every day. A simple Human Resources Dashboard can tell more that the regular presentation for the leadership team. It also helps Human Resources to manage operational costs of HR. It identifies right spots in HR organization that can be redesigned or improved.
The right design of HR Processes depends strongly on HR Roles and Responsibilities and the HR Model. The leader of the business sets the vision and the direction for the organization. The leadership team defines the business and HR strategies. It is the role of the HR Leader to define basic HR Roles and Responsibilities, including the operational model of Human Resources. It sets another foundation for the HR process management.
Today, many start-ups introduce progressive and modern people management practices. They set new standards; large corporations just follow new trends and best practices. The market is a highly competitive today, and HR practices changes significantly. Many start-ups amend its approach towards employees, and they set new higher standards and expectations. Each business has to monitor evolving HR best practices and adapt internal policies to incorporate best ideas and elaborate the competitive advantage. No organization can afford not to update and change its HR processes.
Core HR Processes
Each Human Resources delivers several business critical processes that have a common aim – to ensure the business is ready to accept and combat future challenges. Each company requires resources to deliver its products to customers. HR has to make sure the organization has sufficient resources that are allocated efficiently, and the business can deliver innovations and improvements to its clients.
The key driver for clustering of HR Processes is the HR Model. It is the agreement of the HR Management Team how they split roles and responsibilities inside the HR Organization. It defines key internal and external communication channels, how decisions are made and who is responsible for making a decision.
Human Resources usually clusters processes into following HR functions:
- HR Process Management;
- Organization Design;
- Recruitment and Staffing;
- On-boarding and New Hire Orientation;
- Performance Management;
- Pay for Performance;
- Compensation and Benefits;
- Talent Management and Development;
- Training and Development;
- Leadership Development;
- Succession Planning;
- HR Operations.
Each successful HR Organization starts all processes with the Organization Design. It is one of the most strategic HR processes because it designs core rules how the business is structured. It develops basic organization principles like spans and layers, required skills and competencies at each level and how processes can flow smoothly across departments and divisions.
It is also an excellent foundation for the Strategic Workforce Planning. Most organizations do not change the allocation of employees to functions rapidly. However, the market can change significantly overnight. The workforce planning manages the optimum allocation of employees that the business operates smoothly and efficiently. When things are set right, the organization is agile and ready to face all market challenges.
A successful organization needs to hire new talents from the job market and help them to become a valued member of the team as soon as possible. The Recruitment and Staffing is focused on hiring job applicants internally and externally. It starts with the outcomes, designs, principles and rules defined by the HR Marketing and ends with the successful on-boarding of the new hire. It is about the proper recruitment cost management, strict process management and the measurement of the performance.
Performance Management is usually the weakest spot among Human Resources Processes. However, it is a complex agenda that makes sure that all employees understand the vision, the mission of the organization. They should receive a challenging set of personal goals that fully comply with the business strategy and targets. The effective Performance Management is about the simple Goal Setting Process, regular Performance Feedbacks, and formal Performance Appraisal.
Compensations and Benefits sets the reward strategy and rules to make sure that the internal equity is achieved and kept in the right balance. It sets the base salary policy and makes sure that all managers in the organization follow the rules. It designs incentive schemes for Sales and Call Centers. It usually monitors the personnel expenses budget and sends early warnings if required. It creates the benefits policy to ensure that employees can use benefits not provided by direct competitors.
Talent Development and Management has a clear focus. It outlines processes and procedures that identify high potential employees who should take the senior position in the organization in the foreseeable future. They do not have to become the leaders; they can be top experts or specialists. However, the organization needs to invest in these employees to ensure that it does not lose know-how. Talent Development usually cooperates with all managers across the business. It often utilizes resources of Training and Development.
Leadership Development has the only goal – to develop new leaders for the organization. Each leader has to identify successors, and they need to be ready to take over the position when the current leader leaves the organization. It runs specific processes and procedures to identify gaps and all the best talents from different parts of the organization. It works with a strictly limited group of employees and prepares them to take over the leadership role in the future.
Employee Lifecycle are the processes focused on the personnel administration, attendance tracking and payroll processing. These processes are the basis of Human Resources that must simply work. The team needs to be focused on the excellence and efficiency. The company can survive without the HR Strategy, but it cannot exist without the reliable payroll processing in place.