Human Resources sounds dry and is therefore often underestimated, although it plays an elementary role in the success of a company. A large part of the company's success depends on the efficient management and development of employees, which is exactly the task of Human Resources. This area ensures that the right employees are recruited, developed, and motivated to achieve the company's goals. Without a well-functioning human resources department, a company could not operate effectively since it is the employees who create the true value.

Human Resources: What is it?

Human Resources is the system for managing the human resources of a company. It includes all processes related to the recruitment, development, motivation, and retention of employees. The main goal of Human Resources is to ensure that the company has the necessary skilled workforce to achieve its strategic objectives.

Simply put, Human Resources takes care to have the right employees in the right positions within the company. For example, when a new position is created, Human Resources is responsible for finding suitable candidates, conducting interviews, and hiring new employees. Additionally, this area ensures that employees continue to develop according to the company's needs, are fairly compensated, and work in a pleasant environment.

Human Resources and HR Department

Human Resources is a broad term encompassing the entire spectrum of employee management, while the HR Department is a specific subset of it. The HR Department is responsible for operational tasks such as conducting interviews, creating employment contracts, and managing salaries. Human Resources, on the other hand, also includes strategic tasks like long-term workforce planning, employee development, and managing corporate culture.

For example, Human Resources plans the company's long-term goals regarding employee development, while the HR Department implements these plans by organizing training and conducting employee discussions.

English terms like Human Resources (HR) or Human Resource Management (HRM) have a similar meaning to Human Resources. These terms are often used interchangeably, although "Human Resources" is more widely used internationally, while "Human Resources" is more commonly used in the German-speaking area.

Tasks of Human Resources

Human Resources proves its role in the company by taking on a variety of tasks, all aimed at effectively managing employees and leading the company successfully. Here are the main areas of tasks of Human Resources in detail:

1. Recruitment: This task starts with identifying the need for personnel and includes posting job advertisements, selecting and evaluating candidates, and conducting job interviews. The goal is to attract the best talents for the company. This involves not only finding new employees but also carefully analyzing the qualifications and skills required for the open positions. Additionally, Human Resources plays a crucial role in the onboarding phase to ensure that new employees integrate quickly and become productive.
2. Employee Development: The continuous training and development of employees is a central task of Human Resources. This includes planning and conducting training programs, seminars, and workshops to help employees improve their professional skills. Furthermore, Human Resources supports career planning by offering opportunities for professional development and guiding employees in their professional careers. The aim is to promote employees so that they can not only perform their current tasks better but also be prepared for future challenges in the company.
3. Performance Management: Regular assessments of employee performance are necessary to identify strengths and weaknesses. Human Resources develops and implements performance systems that allow for fair and transparent assessment. Based on these evaluations, individual development plans are created to improve employee performance and promote them appropriately. This also includes identifying high-potential employees in the company who are suitable for higher positions and planning their career development accordingly.
4. Employee Retention: One of the biggest challenges for Human Resources is to increase employee satisfaction and loyalty to minimize turnover. To achieve this, Human Resources develops strategies that promote a positive work environment and create attractive incentives, such as flexible working hours, health programs, or training opportunities. Another important aspect is promoting corporate culture to create a work environment where employees feel valued and motivated. Strong employee retention significantly contributes to the stability and efficiency of the company.
5. Labor Law and Compliance: Compliance with labor regulations and internal policies is an essential task of Human Resources. This includes monitoring and managing employment contracts, ensuring compliance with working hours regulations, and protecting health and safety in the workplace. Human Resources must ensure that all labor requirements are met to minimize legal risks and at the same time ensure a safe and fair working environment for all employees.
6. HR Administration: The administrative tasks of Human Resources include payroll processing, leave management, and maintaining personnel records. These tasks are essential for the smooth operation of the company. HR Administration ensures that all data is correctly recorded and managed so that the operational processes in the company run efficiently and without disruption. Furthermore, HR Administration plays an important role in organizing employee benefits and services as well as handling employee requests and concerns.

Recruiting as One of the Main Tasks of Human Resources

It is a common stereotype that human resources are mainly occupied with searching for and hiring new employees. However, precisely because this is one of the most visible tasks of human resources, it holds special significance, especially today, when skilled workers are simply lacking in many sectors. Everyone feels it when someone is terminated and a new colleague takes their place. Sometimes the situation can even become a bit uncomfortable when someone is dismissed and you temporarily have to take over their work. But this only shows how prevalent the topic of recruiting is in everyday business life.

Internal and External Recruitment

Recruiting can be done in two ways: internally and externally. Both methods have their own advantages and disadvantages.

• Internal Recruitment: Internal recruitment involves filling open positions within the company with existing employees. One of the biggest advantages is that employees are already familiar with the company culture and can adapt to their new roles more quickly. Moreover, the prospect of a promotion motivates employees to fulfill their duties with more commitment and passion. However, a disadvantage could be that the pool of candidates is limited, and the best person for the new position may not always be available. Sometimes, it is even cliché to say: If you stay with the company after your training, you'll always be the apprentice. Figuratively speaking, it means you have to stand out in order to shed your old role and be accepted in the new one.
• External Recruitment: In this case, new employees are sought from outside the company. This expands the pool of potential candidates significantly and allows for fresh ideas and new knowledge to be brought into the company. However, external recruitment is often more time-consuming and costly through personnel consultants, headhunters, job portals, etc. There is also the risk that new employees may take longer to find their way around the company.

Where are new employees sought?

Primarily, the search is conducted on the internet. Platforms like LinkedIn, XING, or StepStone are some of the most popular places where recruiters look for new talents. These platforms offer a wide reach and enable targeted searches for candidates with specific qualifications. Additionally, many companies also use their own career sites to advertise open positions and accept applications.

If the task is complex or the internal recruitment department is overwhelmed, companies often turn to private personnel agencies. These agencies specialize in searching and selecting candidates and usually handle the task efficiently, albeit for an additional fee. The costs for this service typically range from 10-30% of the annual salary of the newly hired employee, depending on the complexity of the search and the position. Headhunter Heiko Mühle provides insight into application processes in an interview with us.

Thus, it becomes clear that recruiting is not only one of the most well-known tasks of human resources, but also one of the most demanding and diverse.

Goals of Human Resources

The goals of human resources can be divided into two main categories: economic and social goals. Both are closely related and ultimately contribute to achieving the overarching goal of the company – maximizing profits.

Economic Goals

The main goal of human resources from an economic perspective is to make the company profitable. This means that human resources must ensure that the right employees are in the right place at the right time and that they work efficiently and productively. It involves minimizing costs while maximizing performance. Specifically, this means:

• Optimal Workforce Planning: Ensuring that all positions in the company are appropriately filled and avoiding over- or under-staffing to reduce unnecessary costs.
• Cost-Conscious Employee Development: Training and development programs must be designed to offer a high return on investment (ROI) and empower employees to work more productively.
• Efficient Salary and Benefit Structures: The wage and salary structures must be designed to motivate employees while also being economically sustainable for the company.

Social Goals

In addition to economic goals, human resources also have social goals aimed at creating a positive work environment and promoting employee well-being. This is not only in the interest of the employees but also indirectly contributes to achieving economic goals, as satisfied employees are generally more productive and loyal. Social goals include:

• Promotion of employee satisfaction: Creation of a working environment in which employees feel valued and well supported. This can be achieved through flexible working hours, health programs, or an open corporate culture.
• Support of work-life balance: By measures that enable employees to balance work and personal life, HR contributes to reducing stress and preventing burnout.
• Ensuring equal opportunities and diversity: A diverse and inclusive work environment promotes innovation and creativity. HR is responsible for ensuring that all employees are treated fairly and have equal opportunities, regardless of gender, background, sexual orientation, or other personal characteristics.

Even though these social goals may seem to primarily benefit employees, they ultimately support the overarching economic goal of the company. A harmonious and supportive work environment helps reduce turnover and retain employees long-term, which in turn saves costs and increases efficiency.

In conclusion, it can be said that HR not only manages employees, but also plays a strategic role that significantly contributes to the company's success. By balancing economic and social goals, HR ensures that the company is profitable and at the same time establishes a corporate culture where everyone can see themselves in an attractive work environment.

My conclusion for you

Although some colleagues may view HR as an area where little is happening, the reality is quite different. HR work is complex and requires high qualifications, extensive knowledge, and a lot of experience in social interaction with people. This field ensures that the company runs smoothly by placing the right people in the right positions and ensuring their continuous development and motivation.

Imagine the company like a car: The visible parts like the steering wheel or the tires are the employees who drive the company forward. But HR is like oil and gasoline in the vehicle, making everything run smoothly. Without these substances, a car won't go far – just like a company without a strong HR department.

We are grateful to you, dear reader, for reading until the end, and wish you much success in your work!