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.

The personnel department

The personnel department or human resources department is the department that is in charge of the Human capital management of a company. In other words, it's the department that manages everything to do with the people who are or aspire to be part of the workforce of the company in question.

Functions of the personnel department

As mentioned, 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 might initially appear. Some of the most common and important functions it handles are as follows:

Employability functionOne of the main functions of the personnel or human resources department is to select the staff who will become part of the company. In this regard, the tasks of job design and the subsequent selection of personnel to fill them are among its fundamental duties.
Retribution functionOn the other hand, the human resources department is responsible for establishing the remuneration and benefits that the worker will receive in each case. This includes both fixed remuneration in the form of salary and other benefits that workers may receive in the form of Flexible remuneration, such as Ticket Restaurant or Transport Ticket, among many others.
Human resources management functionLikewise, another of the personnel department's functions is to manage any incidents or matters related to staff, which can include elements of a very varied typology, from a lack of motivation on the part of an employee to seeking possible solutions for work-life balance.
The function of human capital developmentFurthermore, the HR department also handles the promotion and career development plans for employees, if these exist within the company. In this way, it is this department that manages the positions and roles that the various employees hold within the company's overall structure.
Social services functionOn the other hand, another of the functions that this department handles is the administration of social services affecting workers, from medical leave to trade union matters or health insurance.

Advantages of having a personnel department in the company

It should be borne in mind that not all companies have a human resources department. Various elements influence this decision, such as, mainly, the number of employees in the company. As is evident, having a department with these characteristics allows for much more efficient and decisive management of matters in this area and, furthermore, also speeds up any of the procedures related to the human capital that the company has. 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.