What Is Human Resource Management (HRM)?

What Is Human Resource Management?

Human resource management (HRM) is a crucial aspect of every organization, especially for small businesses gaining a foothold in their industry. Effective HRM involves various strategies and practices that focus on recruiting, training, and retaining employees, as well as managing their performance and promoting their overall well-being. 

Larger businesses typically have a dedicated human resources (HR) person or department, while business owners, managers, or other leaders may be responsible for HR duties in smaller organizations. By committing to a clear and consistent HR strategy, you’re setting your business  up for long term success.  

What Can HRM Help With?

Attracting and Retaining Top Talent

Clear and organized recruitment and selection strategies are key to attracting the best candidates. Once employees are hired, your organization’s approach to HRM will impact employee retention, as employees are more likely to stay in a positive work environment where there are opportunities for growth and development.

Training and Development

Did you know that in a recent survey, 94% of employees responded that if a company invested in helping them learn, they would stay longer? For new hires, training and development starts with orientation and onboarding.

HR professionals typically work closely with managers and employees to identify training needs and may develop programs to address them or identify classes for employees to attend. However, for small businesses, there may not be a dedicated HR team. Through effective HRM, you can provide access to training opportunities to help employees stay engaged and motivated, which can lead to improved performance and productivity.

Performance Management

Performance management involves setting performance goals, providing feedback, and evaluating employee performance. Evaluating employee performance helps managers identify areas for improvement and help employees meet or exceed expectations. It also provides a way for managers to provide feedback to employees, show appreciation, and recognize top performers. 

Compensation and Benefits

HRM also includes managing employee compensation and benefits. Developing and implementing fair and competitive salaries, potential bonuses, and employee benefits such as health insurance can feel complicated. By partnering with a PEO, your team can access employee benefits, automated payroll, HR tools, and compliance support—all in one place.

Succession Planning

Succession planning is the process of identifying and developing high-potential employees to fill key roles within the organization as they become available in the future. This involves working with managers to identify critical positions and potential successors, as well as providing training and development opportunities to prepare employees for these roles to ensure a smooth transition when the time comes. HRM can provide a standardized framework for excellent employees to advance.

Compliance with Laws and Regulations

Every organization legally has to comply with a number of laws and regulations, including federal and state employment laws, health and safety regulations, and industry-specific laws. It’s essential to stay up to date with any changes in laws and regulations to avoid legal issues.

Promoting a Positive Work Culture

HRM also plays a crucial role in promoting a positive work culture. By creating a supportive and inclusive environment, employees are more likely to feel valued and motivated. This can lead to increased job satisfaction and employee engagement, which can have a positive impact on the organization's overall performance and profitability.

How Justworks Can Help

Let Justworks handle the administrative HR tasks that bog you down, so you can get back to running your business. We’ve built HRIS tools and integrations that take care of your team and keep everyone on the same page. With Justworks, you’re able to combine HR, onboarding, payroll, benefits administration, and compliance in a single platform, backed by a full-service 24/7 support team. Come see how easy it is to get started with Justworks.