What does the HR department do?
HR department carries out HR functions like recruitment, rewards, and HR planning within an organization. The structure and responsibilities depend on the company’s size, structure, and industry.
| Small businesses (10-99 employees) | In small companies, an HR professional handles all HR functions, such as recruitment, performance management, compensation, and benefits, employee relations, and HR administration. Their responsibilities are more tactical and administrative like: – Writing job offers and employment contracts – Handling logistics when onboarding new employees – Managing payroll – Document company policies, guidelines, and processes They typically report directly to the CEO but may also report to the COO or Head of Operations. |
| Mid-sized businesses (100-999 employees) | For mid-sized companies, HR duties may expand to include training and development, employee engagement and culture, and HR strategy and planning. For example, they: – Develop employee wellness or recognition initiatives, – Implement different learning and development programs, – Conduct workforce planning, and – Plan and execute organizational development strategies to support the company’s growth and future needs. The Human Resources department may be headed by a VP of HR, who will manage an HR Director and a Director of Talent Acquisition. The directors may lead teams of managers and specialists. |
| Large businesses (1,000+ employees) | In large organizations, there would be more staff with more specialized functions in managing the complexities of a large and diverse workforce. HR scope broadens further to include strategic workforce planning, employee retention, diversity and inclusion, HR systems and technology, and HR strategy and leadership. For instance, the HR team would perform the following duties: – Skills gap analysis – Employer branding – Recruitment marketing – Succession planning – Compensation benchmarking – Managing HR software – Change management – Executing DEI initiatives Successful execution of these functions would require a more complex HR organization. Roles could include Chief Human Resources Officer (CHRO), Chief Diversity Officer, HR Business Partner, HR Analyst, Training/L&D Director, and Employee Relations Officer in addition to the HR Managers, HR Specialists, HR Generalists, and other roles like recruiters, sourcers, and payroll specialists. CHRO is usually part of the executive team in large organizations, reporting directly to the CEO. |
Here’s a sample HR organization chart for a mid-sized business:
Who is above HR in a company?
The HR department usually reports directly to the CEO or other members of the C-suite, like the COO.
Sometimes, there might be multiple management levels, such as department heads or Vice Presidents, that lie between the HR department and the top executives. This varies based on the organizational structure.
Regardless of the structure, the ultimate authority remains with the executive leadership team at the top of the company hierarchy.
HR roles
Depending on the structure and responsibilities of an HR department, the team will define what roles they need to effectively manage all aspects of Human Resources. By determining the right roles and responsibilities, the HR department ensures it can effectively support both the employees and the organization’s broader objectives.
Let’s take a look at some common HR roles.
HR Generalist
HR Generalist performs a broad range of HR responsibilities rather than a specialized HR function. They’re involved in activities like recruitment, compensation and benefits, performance management, training and development, and employee engagement.
Typical responsibilities are:
- Assisting in recruitment and onboarding, like screening candidates, performing job interviews, conducting reference checks, sending employment offers, and handling company orientation and logistics for new hires
- Updating and maintaining employee files, benefits, and attendance records
- Assisting in payroll processing, which includes sick/vacation pay, bonuses, and benefits changes
- Generating and submitting HR reports
- Producing internal documents like offer letters, appointment letters, salary slips, and warning letters
- Helping in the development and implementation of HR policies
HR Generalist salary
HR Generalist salary varies based on industry and location. According to Glassdoor, the average annual wage for an HR Generalist across all industries is around $64,800. On average, HR Generalist working in the telecommunications sector earns $62,086 annually, while those employed in financial services receive $71,818 annually.
Meanwhile, PayScale reports the average annual salary of HR Generalists to be $73,207 in New York and $61,899 in Dallas, Texas.
Find out moreHR Generalist: All You Need To Know About the Role
HR Specialist
Human Resources Specialists usually concentrate on a specific HR function. Their responsibilities also include assisting with other HR tasks, but their main focus is their area of specialization.
For example, an HR Specialist could be responsible for recruitment and onboarding in that case, their duties would include:
- Posting job openings
- Resume and phone screening
- Conducting background and reference checks
- Preparing onboarding kits for new hires
- Organizing job orientation for new employees
HR Specialist salary
HR Specialists can earn anywhere between $21,000 and $87,000. In Chicago, HR Specialists are paid $64,805 annually, while their New York colleagues take home $70,260 annually. The US Bureau of Labor Statistics predicts that the employment of Human Resources Specialists will increase by 8 percent by 2031.
Explore role detailsA Full Guide To the Human Resources Specialist Role
HR Manager
The Human Resources Manager oversees (part of) the HR department. They have other HR employees reporting directly to them.
Common HR Manager responsibilities are:
- Managing HR activities like recruitment, learning and development, compensation and benefits, employee relations, and other HR functions
- Developing and implementing HR programs and policies that support organizational goals
- Working with other department heads to address workforce needs, from staffing shortages to skills development
- Managing the HR budget – Reviewing past HR budgets and analyzing and forecasting the company’s workforce requirements to manage the cost of human capital and ensure the department’s operational efficiency
- Report on HR metrics to senior management – These metrics include workforce headcount, turnover, cost per hire, training cost per employee, eNPS, human capital ROI
HR Manager salary
According to Glassdoor, Human Resources managers in Chicago are paid $83,722 annually, while New York-based HR managers based receive $111,857 per year.
The average salary also varies by years of experience. HR managers with 1-3 years of experience earn $85,788 yearly. Those with 10-14 years get $112,034 annually.
In a report by the US Bureau of Labor Statistics, the employment of Human Resources Managers is projected to grow 7 percent by 2031.
HR Business Partner
A Human Resources Business Partner provides guidance and assistance to line managers in implementing HR best practices that support the company’s business strategy.
Some of the typical responsibilities of an HR Business Partner include:
- Providing strategic advice in workforce planning, upskilling, and succession planning
- Advising business leaders in HR areas of expertise like employee relations, performance management, learning and development, and compensation.
- Assisting in HR policies development and implementation
- Helping organizations tackle current business challenges using HR strategies
- Help line managers address issues related to organizational design and people management
- Analyze HR metrics to identify trends and areas for improvement and create action plans to resolve them
- Stay updated on employment laws and regulations to help leaders ensure compliance
Salary
Payscale estimates that the average HR Business Partner salary in the United States is $78,931 annually. Pay depends on years of work experience, education, certifications, industry, and additional skills.
The average income also depends on location. Payscale states that the yearly salary of an HR Business Partner in Chicago is $83,135, while their New York counterparts receive $95,536 per year.
Discover moreHR Business Partner: All You Need To Know About the Role
There are also many other roles in Human Resources, which are often more specialized. They can focus on, for example, people analytics, DEIB, or talent acquisition.
Learn about jobs in HR15 Job Titles for Human Resources: A Comprehensive HR Job List
Human Resources career
A career in Human Resources can be gratifying as it opportunity to make a strategic impact on an organization and its people. HR professionals also have the chance to continuously develop their skills and play a key role in shaping an organization’s culture and growth.
There are over 805,000 HR professionals in the US, and the demand for HR services and software continues to grow. By 2030, the market will grow at a rate of 12.7% annually.
How to get into HR
Whether you are a new graduate eager to pursue an HR job or an experienced professional interested in switching careers, here are some tips to kick-start your HR career:
- Get certified – An HR certification program is a great way to learn about the fundamentals of Human Resources and get formal credentials in the field. Look for online training programs suitable for beginners, which you can start anytime at your own pace.
- Learn basic HR skills – Focus on developing relevant HR skills like communication, administrative expertise, coaching, and recruitment.
- Use free HR resources – Plenty of resources are available to stay abreast of the latest HR trends and developments. Subscribe to newsletters, listen to HR podcasts, and read HR blogs to learn more about what’s happening in the world of Human Resources.
- Join HR network and industry groups – Gain insights from seasoned HR professionals of all levels and industries. You may even land your next job from friends or colleagues within these associations.
- Volunteer or apply for an internship – Your company may have an HR or recruitment project drive you can participate in to get hands-on experience of what it’s like to work in HR.
Get more tipsHow to Get into HR and Kickstart Your HR Career
HR career path
HR offers professionals various possibilities to design their career paths, change between different specializations, and continuously develop their skills. With HR’s growing strategic importance, individuals can find meaningful career options that align with their interests and abilities.
Mapping one’s HR career path involves identifying the desired skills and professional experience and aligning them with different HR positions and profiles.
At AIHR, we’ve identified four career tracks. While each HR career path requires specific core skills and behavior, you can also plan what you need to learn and gain experience in to move onto a different path. These are the four HR career paths:
- Advisory – Acting as a trusted HR expert by delivering solid and sound advice relevant to the organization’s current business environment and needs. This track includes positions like HRBPs, Senior HRBPs, and HR Consultants.
- Solution Provider – Responsible for designing practical and sound HR practices that address the company’s business needs. Roles in this career path include Learning and Development Consultants, Industrial Relations Specialists, or OD Specialists.
- Service Provider – Responsible for delivering fast and quality service. Roles are usually more junior or middle-management levels: HR Administrator, Payroll Manager, Benefits Manager, or HR Scrum Manager.
- Strategic – Key contributor to the business strategy and partner by planning the company’s future direction. These are experienced HR leaders who work across a variety of HR functions. Positions include HR Director, Shared Services Manager, or Chief Human Resources Officer.
source: https://www.aihr.com/blog/what-is-human-resources/#Why