If you’ve entered the workforce through a corporation or an established business, chances are you’ve encountered a Human Resources team or consultant at some point. HR plays a significant role in most successful companies, but what exactly do they do—and more importantly, why do they matter?
The Elephant In the Room
Before diving in, let’s address the elephant in the room: HR doesn’t always have the best reputation. People often feel uneasy when they see an email from HR or when HR is CC’d on a message. I remember one instance when I contracted for a business, and on my very first day, an employee saw that I was CC’d on an email and immediately panicked, assuming they were in ‘trouble.’ The issue was simple—when someone CCs another party without context, it leaves room for misunderstandings and assumptions to take over. After a chat with the manager to clarify the importance of transparency, and a quick call to the employee to clear things up (more on that in another post!), the situation was smoothed over. None of this would have happened if the company had a healthier attitude towards nurturing their employees and allowing HR to connect with everyone in the organisation, without an ulterior motive. Another reason why we often get a bad reputation is because we are there to do the tasks that no one else wants to do (hello, announcing redundancies). We often wear many hats and have to have conversations that most people don’t want to have with their staff. And thankfully that’s the case, because let’s face it, some managers are just not equipped or good at having tough conversations. The conversation might get heated or is sensitive in nature, tears might appear, and all of a sudden you have a very concerned manager stuttering his or her words and not knowing how to move the conversation towards a resolution.
The examples above show why having a strong HR team or advisor is so crucial for any business. In simple terms, we help business owners focus on what they do best—building a viable and successful company. But to truly thrive, a business needs a community of people supporting it. That’s where a dedicated HR and recruitment team comes in. A good HR team is your go-to for making sure the behind-the-scenes processes run like clockwork. They ensure that your business community—the people who keep things moving—are engaged, supported, and happy. When your team feels like a strong community, your business can truly flourish.
Below are some of the main functions of the HR team or consultant (depending on the size of your business):
Onboarding and Offboarding contractors and employees
Onboarding and offboarding can say a lot about a company. HR staff are there to ensure that onboarding a new employee is a smooth and pleasant experience. Similarly, whilst often treated as an afterthought, proper offboarding is integral for things such as payroll, project management, sales, employee experience, company culture to name a few.
Ensuring that the company is compliant and following employment laws
In Australia, employers must comply with the Fair Work Act 2009. Fair Work governs employer-employee relationships and sets out the minimum standards for employment conditions, such as regulations related to wages and pay, leave entitlements, breaks during work, working hours, termination procedures, Work Health and Safety (WHS) and more.
Contracts and Documentation
In line with being compliant, having proper employment contracts are integral in business, both to protect the business but also to protect employees and ensure that contract terms are clear and agreed upon by all parties. HR consultants are responsible for drafting contracts and ensuring they are stored safely and available when needed to be referred to.
There are important documents that every business should keep including policies, procedures, system forms, registers and training records. This is also imperative if the company is seeking certification for certain industries to showcase that their service or product is trustworthy and reliable.
Recruitment and Hiring
This doesn’t just mean the act of sourcing candidates, interviewing and hiring, but also things like workforce planning and forecasting for peak/off peak periods, especially in industries such as hospitality and healthcare.
Conflict Resolution
I provided examples of these above but essentially, when things turn pear-shaped HR is there to be the neutral party to provide a resolution. Both the employer and employee must remain fair and follow best practice procedures, policies and processes.
Performance Reviews
The most impactful performance reviews I’ve encountered take place right before an employee’s probation period ends (say, around six months) and then annually after that. Unlike the traditional view held by many managers and employees, performance reviews shouldn’t be about critiquing or pointing out where someone is falling short. Instead, they should focus on bridging gaps in training, fine-tuning skills, and most importantly, realigning the employee’s role with the broader goals of the company. Honestly, we could start calling them “Alignment Reviews” instead, right?
These reviews shouldn’t just be about discussing pay raises (though that might come into play). The real objective should be to ensure employees have the tools, guidance, and support they need to thrive. If someone isn’t excelling, it’s often not because they lack competence, but because their role is out of sync with their strengths and aspirations. Nine times out of ten, it’s about misalignment rather than ability.
Employee Engagement
This part can be so fun! Think team surveys, coffee catch ups (virtual or in person). Putting together events that ensure that everyone in the company can mingle together and get to know one another and their purpose within the company. We thrive in fulfilling and supportive communities, so companies should be aiming to build just that, no matter how small or big the company is. I once planned a “blind date” type event where everyone in the company (it was a large company) got together and took turns to talk about their work , what made them happy about their role and what they want to do next. It was an in-person event and it was set up like a job fair with different stands. Everyone had so much fun and loved it! It created a buzz for months afterwards and staff got to know colleagues that they wouldn’t have otherwise gotten to connect with, if it wasn’t for this event. Team surveys consistently echoed that they wanted a repeat so the company held another one later in that year and it became an event that is looked forward to, by all, at the start and end of the calendar year. Apart from events, employee engagement also includes things like putting together an Employee Benefits program, monthly virtual catch ups with and much more.
Learning and Development (L&D)
L&D focuses on improving the skills, knowledge, and competencies of employees to help them perform better in their current roles and prepare for future challenges within the organization. This function handles everything from onboarding new employees, providing job-specific training, leadership development programs, upskilling or reskilling initiatives, and even career planning.
The goal of L&D is to create a continuous learning culture within the company that fosters employee growth, boosts productivity, and aligns individual growth with the company’s strategic objectives.
Strategic HR Planning
This is where HR is not only a support function but a key player in shaping the company’s long term success. Strategy HR planning can mean the difference between a company staying stagnant or advancing. To provide an example, imagine a tech company experiencing rapid growth and aiming to expand into international markets within the next five years. A strategic HR approach would involve:
- Workforce Planning: Identifying the skills and talent needed for international expansion, such as language skills, cultural understanding, and technical expertise.
- Talent Development: Designing training programs or hiring strategies to ensure employees are equipped to take on leadership roles as the company expands globally. This could include creating programs to train high-potential employees for management roles or sending teams abroad to gain experience in international markets.
- Culture Building: Fostering a company culture that supports innovation, teamwork, and adaptability. Strategic HR would work to ensure that as the company grows, its values and culture remain consistent, even across borders.
- Retention Strategies: Implementing benefits, incentives, and career progression plans that not only attract top talent but also keep them engaged for the long-term, supporting both the company’s expansion and its stability.
Whilst this is a pretty comprehensive list of HR functions, there are going to be businesses which have different team structures and therefore the HR team might take on more or less than the list above. For instance, small businesses quiet often combine HR with Payroll, which makes sense as the two functions overlap often.
As an independent HR consultant, one of my favourite aspects of the job is the diversity of HR functions. While I specialize in working with small businesses, I understand that not every business is ready for large-scale L&D programs or comprehensive Employee Engagement initiatives. However, there are some key HR functions that no small business should operate without—whether you’re working with a consultant for just 10 hours a month or more. These are the non-negotiable systems that every business needs to set up and maintain for smooth, compliant operations. If you’d like a checklist of these essential HR functions, feel free to reach out, and I’ll send it right to your inbox.