Human Resource (HR) administration refers to the managing of human capital within an organization or industry. Once called “personnel management,” human resources is leading the way for improving the overall employment experience for billions of hard-working professionals around the world. In addition, human resource administration provides the business strategy by which organizations can meet the demands of the future.
In many organizations, human resource administration is handled by a team of human resources professionals headed by a senior human resources director. The duties of the members of the team can range from recruiting and employee relations to payroll and benefits administration. The entire team works together to achieve the human resources goals of the organization under the direction of the human resources manager.
For the best results, HR administration should be closely linked with the executive management of an organization. Each department must communicate the personnel needs and goals of the company on a regular basis so that the human resources division can best support the objectives of the organization. Without continual communication and resources, any organization can face shortages of skilled staff to handle the many responsibilities in departments, resulting in low performance.
A growing majority of organizations rely on human resources outsourcing to manage the administration of human resources. This practice can often be a more cost-effective way to ensure that all personnel matters are handled responsively and professionally by a team of human resources specialists that have the training and expertise needed to get the job done, In addition, outsourcing of human resources processes can save companies significantly because there is no need for an in-house team. Outsourcing human resources work is a practice that many small to medium sized businesses use to save time, money and get a larger range of services that will adapt to a growing organizational structure.
For many companies, contracting a portion of services to an independent human resources consulting firm makes good business sense. Human resources consultants can handle some or all of the human resource administration such as payroll, recruiting, or training needs of the company so that leaders can focus on running the business. In this case, the consulting firm creates custom solutions that will best support the needs of the company, without trying to take over any of the operational aspects.
Human resource administration of today requires trained individuals who have the personality traits and the commitment to providing expert support. When planning a human resources strategy, it's best for organizations to look for human resources professionals who have the education and experience to manage the complex issues that human resources departments often face. In addition, human resources divisions must stay on top of employment and legal trends in order to best protect the companies they serve.