HR and payroll

What is the role of the HR department in a company?

By Mahmoud SaiedLast updated 27 October 20262 min read

The short answer

The HR department makes sure the company has the right people in the right roles, and that its relationship with them is organized, fair and lawful. That covers workforce planning, hiring, pay, performance, training, employee administration, compliance, and a workplace that keeps good people.

Step by step

  1. 1

    Planning and organization

    Defining the roles the company's plan needs and their specifications, and contributing to the organizational structure and job descriptions.

  2. 2

    Attracting and hiring

    Attracting candidates and choosing the best fit, then welcoming each new employee until they settle into the work.

  3. 3

    Pay and benefits

    A fair salary scale, with salaries paid and contributions and taxes calculated on time.

  4. 4

    Performance and development

    Goals and indicators for every role, regular appraisal, training that closes gaps, and clear paths to promotion.

  5. 5

    Administration and compliance

    Files, contracts, attendance and leave, with internal regulations and procedures that comply with your country's labor law.

  6. 6

    Employee relations

    Grievance channels, fair investigations, measuring employee satisfaction, and advising managers on how to run their teams.

A common mistake

Limiting HR to files and leave leaves its most important roles with no owner: choosing people, fair pay, and developing managers.

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