The purpose of human resources in business

Anne from Starling Bank discusses the role of human resources

The role of human resources

Businesses need staff to carry out their day-to-day activities. Human resources refers to the coordination of all issues relating to the people a business employs, to ensure that the business is able to operate.

The human resources function of a business is responsible for all staff-related issues, including:

  • the recruitment of new staff
  • the induction, training and development of staff
  • staff performance systems
  • disciplinary procedures
  • ending employment
  • complying with relevant government legislation

To meet the needs of the business, human resources must work with other functional areas of the business to plan ahead. It must consider:

  • The number of staff needed - human resources must ensure that sufficient staff, with the right skills, are recruited to meet the needs of the business. This involves knowing when staff are leaving and whether they need to be replaced.
  • The staffing budget - the amount of money available may affect the salary or wage that is offered during the recruitment process.
  • The types of contract staff will be offered - staff might be offered a range of contracts to make the workforce more flexible. Examples include full time, part time, temporary and permanent.
  • The location of staff - a business that operates in more than one location must identify which staff are required at each location. Some businesses must also consider whether the option of working from home should be available to staff.
  • How staff will be managed - human resources needs to know the structure of the business, so that it is able to identify who will manage and supervise staff.
  • How relevant legislation will be met - human resources is responsible for ensuring that the business complies with all relevant employment legislation.