10 Essential HR Processes You Need To Implement

Khyati Sagar

Senior Writer

Essential HR Processes

Streamlined HR processes are critical for long-term business success. After all, inefficient HR planning, low employee retention, and unattractive compensation package are red flags that can quickly lead to increased costs, time drainage, and poor brand image.

50% of new hires stay in the organization if it gives a great onboarding experience. That’s what improving one of your HR processes can lead to. That’s why your HR processes must be efficient, streamlined, and flexible to keep up with the new employee trends and needs.

Looking for HR Software? Check out SoftwareSuggest’s list of the best HR Software solutions.

Having structured human resource management processes promotes a healthy employee lifecycle and a positive job experience. How? By streamlining the way employees come in and progress in your organization.

Wondering how to efficiently manage your human resource processes? Here’s an informative guide on HR processes, the benefits of its automation, the key human resource processes list, and how HR leaders can effectively manage HR processes.

What Are HR Processes?

Definition of HR Processes

HR processes are a stack of interdependent HR functions–recruitment, onboarding, training, compensation, compliance, creating onboarding checklist and more.

Strategically outlining, recapitulating, and streamlining HR processes to align with your business value and goals leads to coherent employee lifecycles and outstanding employee experiences.

“I am convinced that nothing we do is more important than hiring and developing people. At the end of the day, you bet on people, not on strategies.” – Lawrence Bossidy.

Clearly, sorting your HRM processes is crucial to meet business goals while achieving operational excellence.

What Is End-To-End HR Process Management?

End-to-end HR processes involve the entire employee lifecycle—steps that introduce employees to your organization, manage their performances, advance them, and help them exit. 

Now, end-to-end HR processes management is streamlining different steps of this employee lifecycle by breaking them down into simpler tasks for enhanced control. 

Performing these small tasks dedicates a certain structure to each stage of the HRM process, saving HR time and cutting the company’s costs. This structure keeps the employees informed on the next steps in their journey, enhancing their experience.

End-To-End HR Process

But with hundreds of employees onboarding across different departments, manually managing a candidate’s transition to a suitable, skilled employee can become complex and inefficient. 

With a technology-driven end-to-end Human resource management process, you can hand-hold candidates throughout their journey with minimal manual intervention while generating data reports for improvement.

What Are The Advantages Of HR Process Automation? 

Human resource process automation uses software to automate tedious HR tasks, helping the HR department manage personnel better—in less time and with higher efficiency. It’s the ultimate answer if you’re wondering how to streamline HR processes.

Here are 6 benefits you can reap by automating the human resource process: 

Advantages Of HR Process Automation

1. Enhanced accuracy

Manually performing complex HRM processes involves high human intervention, increasing the chances of errors. Reworking and correcting these errors add to cost and time drainage, leading to frustrated and inefficient HR management. Automating human resource processes makes them simpler, quicker, and more accurate. That’s the reason why automation must be a part of your HR strategy.

2. Reduced costs

By automating the process of human resources and eliminating human intervention, the bar of accuracy rises, saving rework costs. In fact, such software needs no huge investment or considerable maintenance. You can easily opt for the pay-as-you-use model, cutting down a chunk of your costs.

3. Greater efficiency

HR automation eliminates bottlenecks while letting transparent HR processes flow smoothly. Talented employees will no longer have to perform time-draining operational tasks (that you could easily automate) and can focus on strategic tasks better.

For instance, instead of manually digging for information such as a particular candidate’s position in the onboarding process, you can readily have the information at your disposal with HRM process automation.

4. Informed decision-making

Once you automate HRM processes, multi-level tracking becomes easier. Closely monitoring all the processes makes you aware of their functioning and effectiveness while hunting down inefficiencies. These data insights allow you to take data-driven decisions, improving the employee experience.

5. Time-saving

69% of HR professionals believe automating the hiring process significantly reduces time drainage. Of course, when all the repetitive tasks are automated, employees can dedicate time to high-value tasks and significantly impact the organization. Not just that, automated tasks are consistent and error-free, eliminating the need to re-check. 

6. Consistent workflows

HR software follows a certain structure and will not deviate from it until you make changes. But that’s not the case with employees or separate human resources management tools. Employees and tools have their way of performing certain tasks, which often brings in variational outputs. That’s why all-in-one automation software is a wiser choice if consistent HR practice across organizations is your priority.

10 Key Human Resource Processes For Increased Efficiency

Human resources is not a standalone concept but includes a series of HR process steps. Here are 10 key processes of human resource:

Human Resource Processes

1. HR planning

HR planning is one of the key human resources management processes that involve identifying and planning for the ‘people’ needs of the organization. HR planning means sorting out the number and kind of employees needed. This strategic planning lays the foundation for other HR functions–recruitment, retention, and so on. HR planning ensures the company has the right employees in each department at the right time to work towards the organization’s vision.

2. Recruitment

Recruitment involves attracting relevant candidates to interview and selecting the most suitable ones for your organization.

To recruit highly skilled candidates, HR must update job postings on hiring sites, craft a lucrative compensation package, and narrow down the best fit to bring forth the right candidates. After identifying the qualified candidates, HR must screen them, conduct formal interviews, and run background checks.

A bad hire costs more than 5 times the candidate’s salary. In contrast, an effective recruitment process reduces costs and boosts the employer/company’s reputation in the market and the candidate’s eyes. 

3. Retention 

Retention refers to the process by which companies ensure that the existing employees do not turn down the job and work for the company over the years. Employee retention must be a priority, as turnover costs 33-200% of the leaving employee’s salary

Not just that, employee turnover also often increases the remaining employees’ workload, disturbs the overall workflow and reduces productivity. In contrast, retention saves the cost and time of re-filling the vacancy while letting the operations flow smoothly.

4. Onboarding

Once HR has a list of hired candidates, it’s time to kickstart the onboarding checklist.

Onboarding involves tasks such as:

  • Collecting and effectively managing new hire documents,
  • Providing system access
  • Communicating critical information such as detailed role descriptions, performance expectations, company culture, and training to be conducted. 

Wondering why onboarding is so important? Exceptional onboarding retains 69% of employees for at least 3 years, saving you time and reducing the cost of looking for new hires every other month. 

Want to make your onboarding process streamlined and efficient? Automation is the answer. There are a range of employee onboarding software in the market to help you achieve seamless employee onboarding.

5. Training and development 

Employee training and development is one of the important HR processes that makes employees understand the company-specific requirements and empowers them accordingly. Regardless of employee skills, you must offer them learning and development opportunities when newly hired.

The development process must continue to ensure employees are well-updated with new skills, making them a good fit for leadership roles. This improves productivity and enhances job satisfaction.

For instance, not extending product training to sales reps can hinder customer communication. They may struggle to demonstrate the product well and resolve customer queries, causing you to lose customers due to lacking customer satisfaction.

6. Compensation and Benefits

Want to attract and retain the best candidates? Strategic compensation and benefits, one of the major HR process steps, is the way to go. HR managers and HR teams must offer a package that’s a win-win for both organization and its employees. Consider compensation packages of existing employees in similar positions and standard market offers for this process.

The best example of employee benefit in the US is healthcare, which is quite costly. Such benefits attract more candidates and boost employee satisfaction, making them feel ‘cared for at work’.   

7. Performance management

The performance management process is a core human resources process that strives to monitor employee performance, check if it aligns with organizational goals, and craft improvement methods. The performance management process is conducted regularly to eliminate inconsistencies and incorporate potential improvements.  It also ensures that employees feel supported and engaged, reducing employee turnover. 

Performance management is a powerful tool to accelerate employee growth and build an army of future leaders who immensely contribute to the business’s growth. 

360-degree feedback makes for a strong employee performance management example. It gauges employee performance after collecting reviews on employees’ contributions from multiple managers. 

8. Employee relations

Employee relations is a crucial human resource management process. It is about forming policies for employee conduct, workplace culture, and worker safety, and addressing improper conduct. It also includes maintaining good relations among employees and between employees and management.

When employee relations are in place, the organization’s members align with the company’s culture, values, and mission. This leads to smooth organizational functioning.

9. Regulatory Compliance

Regulatory compliance ensures that all organizational procedures–hiring and workplace rules, employee treatment, and health and safety necessities align with employment laws and regulations. To do so, HR teams must check that policies and schemes do not deviate from legal obligations (government regulations) to avoid paying penalties for non-compliance.

Regulatory compliance has its fair share of benefits; it helps you:

  • Adhere to overtime pay rules and minimum wage requirements. 
  • Comply with compensation laws ensuring fair benefits and compensation packages to employees.
  • Make employers aware of the compliances and run audits to check its application. 

10. HR analytics 

Human resource data and analytics is one of the most important HR processes. It involves collecting and applying human resource-related data and making data-driven decisions to improve HR processing and business outcomes.

It helps you monitor how human resource metrics such as labor costs and return on human capital impact the organization’s overall functioning. Based on this data, HR analyzes and improves talent decisions, workforce policies, or other related areas. Doing so helps them furnish a better employee experience, enhance the effectiveness of training programs, and eliminate inefficient processes.

Credit Suisse, an investment banking company, used HR data and analytics to identify high-risk employees with the reason for their likelihood of quitting. This helped the organization save $70,000,000 yearly by eliminating the factors increasing employee turnover, resulting in an increased retention rate. 

Know more about what makes HR data and analytics a non-negotiable for HR leaders.

What Can HR Leaders Do To Manage HR Processes Effectively? 

Here are 3 steps to effectively manage HR processing for positive employee experience and enhanced efficiency:  

1. Re-assess objectives

Regularly check the alignment of processes’ objectives and company goals to effectively manage HR processing. This ensures that all HR processes boost employee satisfaction and operational efficiency.

2. Automate tasks

HR professionals are required to perform multiple core human resources processes, make a series of strategies, and achieve tons of goals. In such a scenario, manual management using spreadsheets and different tools will quickly become a major cause of low productivity, more errors, and unreliable and unsecured data.

In fact, HR managers drain 14 hours/week on tasks that can be automated. Automation is the only good choice to remain competitive while adapting to the evolving human resource needs and trends. HR software does all the tedious, repetitive HR tasks, leaving room for HR business leaders to focus on more strategic tasks.

Not just that, HR automation enables you to communicate and collaborate regarding onboarding, employee transfers, and other people-related data on a centralized platform for a smooth flow of human resources business processes.

3. Incorporate feedback and reviews 

HR can improve their processes and make accurate decisions only when they set employee feedback and reviews as their base. HR leaders must conduct a performance review and employee satisfaction survey to acquire the most relevant information. This’ll give them a broad overview of where they are lagging and help them craft a more powerful HR strategy.

Wrapping up

Efficiently managing your HR business process will help you ace your talent management game by bringing and retaining the best talent into your organization. This will also build a healthy environment for employees to grow.

But it is only by automating your human resources processes that you can leverage real growth. With equipped human resources processes automation software, you can eliminate redundant tasks and effort/time/cost wastage—a key part of business objectives. You can then free your time to focus on key strategic tasks for increased employee satisfaction and accelerated business growth.

Frequently Asked Questions

   

Human resources processes are dynamic and require continuous monitoring to contribute to the business’s growth, so there’s no fixed time to complete them.

HR managers and leaders conduct HR processing for the employees of the organization.

Yes, streamlining and automating human resources business processes save time as it frees HR from repetitive tasks, enabling them to focus on strategic tasks better.

HR management processes are crucial to an organization because they enhance employee experience, increase productivity, boost employee retention, and ensure employee engagement.

A seamless flow of human resources business processes leads to high employee engagement, satisfaction, and productivity, adding to a strong company culture.

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