The purpose of human resources (HR) is to help an organization attract, support, develop and retain employees while creating a fair, productive and legally compliant workplace.
HR connects business goals with the people, policies and systems needed to achieve them. Its work covers 7 areas: hiring, employee support, development, retention, workplace relationships, compliance and workforce planning.
HR manages the employee relationship from recruitment and onboarding through training, performance management, compensation, employee relations and departure.
Human Resources Purpose at a Glance
| HR purpose | What it involves | How it helps the organization |
|---|---|---|
| Hire the right people | Recruitment, interviews and selection | Fills roles with suitable employees |
| Support employees | Onboarding, policies, benefits and workplace assistance | Helps employees perform effectively |
| Develop capability | Training, career development and performance management | Builds skills and improves performance |
| Retain talent | Fair rewards, engagement and career opportunities | Reduces avoidable turnover |
| Manage workplace relationships | Conflict resolution, communication and employee relations | Supports a healthier working environment |
| Reduce legal and operational risk | Consistent policies, records and employment compliance | Helps the organization meet its obligations |
| Align people with business goals | Workforce planning and people strategy | Ensures the organization has the talent it needs |
What Does Human Resources Do?
Human resources manages the systems and relationships that support employees and the organization. Its main responsibilities include the following.
1. Recruit and Hire Employees
HR identifies staffing needs, writes or supports job descriptions, attracts candidates, conducts screening and interviews, and helps managers make hiring decisions. Human resources specialists may also check references, explain job conditions and place new employees in suitable roles.
Good recruitment gives the organization the skills and capacity it needs for current and future work.
2. Onboard New Employees
HR introduces new employees to the organization's policies, systems, workplace expectations, role requirements and benefits.
A structured onboarding process explains:
- What the job requires
- Who the employee works with
- How performance is measured
- Which workplace policies apply
- Where the employee can get support
3. Develop Employee Skills
HR supports training, professional development and career planning. This work can include formal courses, coaching, mentoring, leadership training and learning on the job.
The purpose is to connect employee development with the capabilities the organization needs. Training is more useful when employees can apply it to their work and managers can support the change.
4. Manage Compensation and Benefits
HR helps administer pay, bonuses, health insurance, retirement plans, leave and other benefits. It may also support job evaluation and compensation structures.
Clear and fair rewards help an organization attract and retain employees. HR also needs to apply compensation and benefits processes consistently and in line with relevant requirements.
5. Support Performance Management
HR helps organizations set performance expectations, create review processes and manage improvement plans. It also gives managers guidance on setting goals, providing feedback and responding to underperformance.
Performance management should make three points clear:
- What the employee is expected to achieve
- What support and resources the employee will receive
- How progress and results will be evaluated
6. Handle Employee Relations
Employee relations covers workplace concerns involving communication, conflict, conduct, grievances and relationships between employees and managers.
HR may investigate complaints, support conflict resolution and advise managers on sensitive employment matters. Human resources managers also advise organizations on equal employment opportunity and workplace harassment.
7. Maintain Legal and Policy Compliance
HR creates and administers policies covering hiring, leave, conduct, workplace safety, discrimination, harassment and employee records.
Human resources specialists help ensure that HR activities comply with federal, state and local regulations.
HR does not replace legal counsel. It does provide the systems, documentation and processes that help managers apply workplace requirements consistently.
Why Is Human Resources Important?
HR Improves Organizational Performance
An organization cannot carry out its plans without people who have the right skills, responsibilities and support. HR helps leaders plan workforce needs, recruit employees, develop skills and address performance problems.
CIPD describes the main aim of HR generalists as creating and delivering people strategies that help organizations meet their goals.
HR Improves the Employee Experience
Employees interact with HR throughout their time at an organization. Reliable pay and benefits administration, clear policies, fair treatment, development opportunities and access to support all shape that experience.
CIPD describes the wider purpose of the people profession as promoting better work and working lives.
HR Reduces Avoidable Risk
Poor hiring practices, inconsistent discipline, unclear policies and weak recordkeeping can lead to operational, financial and legal problems.
HR reduces these risks by establishing consistent processes, maintaining records and helping managers handle employment issues appropriately.
HR Helps Retain Valuable Employees
Employees are more likely to leave when they lack development, experience poor management or unfair treatment, or cannot see a future with the organization.
HR responds through compensation practices, career development, manager support, employee listening and workplace policies. These measures do not remove every reason people leave, but they can address problems the organization has the ability to change.
Is HR Mainly an Administrative Function?
No. Administration is one part of HR, but the wider purpose of human resources is organizational and strategic.
Administrative HR work includes:
- Maintaining employee records
- Processing forms
- Managing benefits information
- Supporting payroll
- Administering leave
- Explaining workplace policies
Strategic HR work includes:
- Workforce planning
- Leadership development
- Succession planning
- Organizational design
- Employee retention
- Skills planning
- Culture and change management
The balance depends on the organization's size and maturity. In a small business, one HR generalist may handle administration, recruitment and employee relations. In a larger organization, separate specialists may focus on talent acquisition, compensation, learning and development, employee relations or HR analytics.
What Is the Main Goal of Human Resources?
The main goal of human resources is to create the conditions in which employees and the organization can succeed together.
In practice, HR manages the relationship between an organization and its employees in a way that supports business performance, fair treatment and better working lives.