What is Human Resource Management (HRM)?

May 12, 2022
min read

What is HRM?

One of the most common misconceptions about HR is that it is exclusive to hiring, firing, and paying employees. 

In today’s competitive reality, human resources plays a more crucial role than ever before, as especially in remote environments, employers and employees look to HRM to create a positive work environment where employees feel encouraged and safe to dedicate themselves to their work. This means the modern people team has and needs varied skills to improve employee engagement, manage company culture, and drive business outcomes. 

So, it’s time we get a refresh on what human resources management means today. 

A quick definition

Human resource management (HRM) is the process of managing all employees in a workplace from hiring and compensation to training and policy creation.

In recent years, human resource management has shifted from administrative management tasks to a more strategic role benefiting the entire organization, largely due to changes in the way we accomplish work and the addition of strong technology support systems like a Human Resources Information System (HRIS). Many human resource management processes have become more efficient, making more room to truly take care of their people. 

Its role within the company

The role of human resources is to manage people to achieve better performance. Engagement is huge here. Engaged employees are more productive and do their best possible work, which is why HRM dedicates time to making sure employees are as engaged as they can be. 

Another example is culture. As human resources brings new people into the business, they are looking for people who fit the company culture as they will be happier, more productive, and stay longer than those who aren’t the right fit. This means when human resources finds ways to make employees more engaged, they help the company. 

What it all boils down to though is the providing of tools, training, knowledge, legal advice, and talent management, which is crucial to promoting and sustaining business growth. 

Recruitment and onboarding

Recruiting the right people to join your team is a central component of HRM. Afterall, people are the driving force of your organization – finding the best fit is a key task. 

Hiring a recruiting professional has the potential to be the turning point in streamlining your hiring strategy and process. Especially as top talent becomes more difficult to secure, it takes a dedicated resource to find and recruit the best candidates for your growing team. In fact, it can make all the difference in finding the right people to accelerate innovation and growth. Check out our recent blog for five reasons why your company would benefit from hiring a full-time recruiter. 

Once the right talent is recruited to join your team, ensuring they receive the best possible welcome is the next step. 69% of employees are more likely to stay with a company for three years if they had a good onboarding experience. That’s why our People Operations team works hard to help Newmigos feel valued and welcomed from the very beginning. All Newmigos receive a welcome box with their favourite treats, a laptop, and Humi swag prior to their first day. When it’s time to jump in, they are given a strategic onboarding plan mapped out by critical touch points over their first 30, 60, 90, and 120 days. By the end of the onboarding process, Newmigos are turned Humigos and are well equipped to do incredible things here at Humi. 

Training and team building

One way human resources keeps your people satisfied and committed to the success of your company long-term is through supporting employee growth and professional development initiatives.

When employees develop new skills, they tend to be more satisfied and productive in their role. By encouraging and putting dollars behind professional development strategies, HRM drives productivity and nurtures a strong, lasting team. This can include training, certification, education – all the things employees do after entering the workforce that helps them stay up to date, develop new skills, and ultimately advance in their career.

Even when not required, many professionals who are looking to excel in their career voluntarily seek out these opportunities. The modern people team that invests in their employees is ahead of the game, increasing efficiency, improving employee engagement, and encouraging team members to stick around for the long run. 

Employee performance and retention

Once employees are onboarded, performance management is a key component of HRM. It’s goal is to ensure what employees do and how they do them are in sync with the goals, mission, and vision of the organization, while maintaining a safe and motivated work environment.

In the modern workplace, weekly check-ins, quarterly performance discussions with peer reviews, and annual performance reviews are recommended – that way, everyone is constantly aware of how they’re performing

A feedback-rich culture, where employees feel comfortable asking for and receiving feedback, is a strong indicator of a great place to work – it’s also pivotal for retaining top talent. Real-time feedback drives high performance through flexibility, accuracy, and consistent engagement, and is a catalyst for building trust. To better understand real-time feedback and how you can adopt it as a people leader, check out our ebook, 10X your team’s performance with real-time feedback.

Creation of company policies

Human resources policies are the foundation of managing the work, behaviours, and interactions of employees. 

Any company with employees should have HR policies in place to set expectations for employees, ensure transparency, and take good care of their people. An employee handbook is an outline of all your employee-facing policies and guidelines. It can include your company history, your values, mission, and vision, and if done properly, should serve as guidance for successfully integrating both new and current team members into your company. Dive into our latest e-book, a step-by-step guide with comprehensive templates to build a handbook that sets your team up to do great work together, to learn more. 

Legal compliance

Once policies and procedures that best suit your workplace are imagined, it’s HR’s responsibility to align them with their local and federal labour laws and industry-specific regulations. 

Enforcing practices to follow these policies daily in the workplace is also a part of HR compliance – leaders must ensure their people and the organization are abiding by standards, both internal and external. 

Payroll and benefits

Another one of the fundamentals of HRM is payroll and benefits. Making the right offer, managing pay increases, and setting standards is at the centre of this. 

Ensuring equity and fairness when it comes to compensation. Pay equity is equal pay for equal work. But when pay inequity resides in your workplace, you’re telling some people – based on their gender, race, ability, and background – that they are less valuable than others. It’s possible for issues of fair compensation to reside at your company, which is why we recently (virtually) sat down with our equity, diversity, and inclusion (EDI) consultant and President of Entelechy Consulting, Darius Sookram, to name the ways in which Canadian companies can identify their own disparities and make a difference in their workplace. Check out the full article for more information. 

Succession planning

Succession planning is the process and strategy of identifying potential leaders and high performers in the case of replacement planning and passing on leadership roles. 

For a long time, growth within an organization meant that at some point, everyone would eventually lead other people. But the changing world of work means businesses have been adopting flat hierarchical structures, where individual contributors (ICs) are just as valuable (and necessary) in driving success. Our Director of People Operations, Andrea Bartlett, recently spoke about what it means to be a great people leader and why individual contributors (ICs) are equally as important to the growth and success of your business. Check it out here.

Manage all your human resource needs with Humi

An all-in-one solution is what every modern HR team needs to prioritize taking good care of their people, and Humi is just that. Human resources, payroll, insurance, and benefits easy accessible in one place saves you time so you can get back to building and sustaining a great place to work. Book some time with our team to learn more. 

Learn more with Humi

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For insight into relevant and raw people challenges, and the tools you need to continuously shape the future of work, subscribe to Think with Humi – your number one people newsletter written by a real HR expert and Humi’s Director of People Operations, Andrea Bartlett.

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