Personnel Department: what is it and what are its functions?

One of the departments that can most affect the proper functioning of a company is the personnel department or human resources department. This is because, although it is not a department that has a direct function with respect to the product or service provided by the company, it is a department directly responsible for all employee-related matters, These will ultimately determine the company's product or service and, consequently, the company's success. 

What is the personnel department?

The personnel department or human resources department is the department that is in charge of the managing a company's human capital. In other words, it is the department that manages everything that has to do with the people who make up or aspire to make up the workforce of the company in question.

Functions of the personnel department

As mentioned above, the general function of a personnel department is to manage all matters relating to the people working in a company. However, this type of management can be more varied than it might at first appear. Some of the most common and important functions are as follows:

• Employability functionOne of the main functions of the personnel or human resources department is to select the personnel that will become part of the company. In this aspect, the tasks of designing jobs and the subsequent selection of personnel to fill them is one of its fundamental tasks. 
• Remuneration functionOn the other hand, the human resources department is in charge of establishing the remuneration and benefits that the employee will receive in each case. This includes both fixed remuneration in the form of a salary and other benefits that workers may receive in the form of Flexible Compensation, such as Ticket Restaurant o Transport Ticket, among many others. 
• Staff administration functionAnother function of the personnel department is to manage any staff-related issues, which can include a wide range of elements, from lack of motivation on the part of an employee to finding possible solutions for work-life balance. 
• Human capital development functionIn addition, the personnel department is also responsible for the promotion and career planning of employees if they exist in the company. In this way, it is this department that manages the positions and positions that the different employees occupy within the general organisation of the company. 
• Social services functionOn the other hand, another of the functions of this department is to administer the social services that affect workers, from medical leave to trade union issues to health insurance. 

Advantages of having a personnel department in the company

It should be borne in mind that not all companies have a personnel department. This decision is influenced by a number of factors, such as, in particular, the number of employees in the company. As is evident, having a department of these characteristics allows for a much more efficient and decisive management of issues in this area and, in addition, it also speeds up any of the procedures related to the company's human capital. In this way, it constitutes an important and valuable tool which, at least in the case of larger companies, is necessary and essential for the smooth running of the company.