HR and people

CORE BUSINESS ESSENTIALS

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Introduction 1. The purpose of Human Resources 2. People, policies and processes 3. Budgeting for HR

Did you know? Businesses that drive positive experiences for their employees through HR are 1.3 times more likely to report outperformance.

Every business needs HR. Whether you’re starting out or looking to grow. This lesson will help you identify the policies, people and tools you might need.

KEY LEARNINGS

  • Be aware of the roles of HR and how they might help
  • Learn how to set up HR in your business

Read time:

11 mins

Chapter 1 - The purpose of Human Resources

Chapter 1

The purpose of Human Resources

Read time:

4 mins

What is HR?

HR is the people-focused part of your business. It looks after everything to do with your employees.

 

This includes:

  1. Recruitment - Finding and hiring the right people for the job
  2. Employee relations - Keeping a positive work environment and resolving conflicts
  3. Performance management - Setting goals, providing feedback and tracking performance
  4. Compliance - Making sure the company follows labour laws and regulations
  5. Training and development - Helping people to learn and grow

 

How can HR help you reach your business goals?

We’ve already talked about the benefits HR can bring, but how do they make them happen? There are different roles HR plays and each can help drive aspects of your business goals.

Hiring

HR is there to help you hire the right people. It’s there to build you a strong team that can drive business success. This can help with all your business goals.

Training

HR provides training and development to help employees improve their skills. This helps them meet business goals.

Performance

It assesses employee performance. Regular feedback can help employees meet their goals and help your business succeed.

Growth

It creates a strong culture to help your business grow. HR helps guide your business through change. This can help you adapt. 

Legal

HR helps with labour laws and regulations. This reduces the risk of things like issues and fines.

Engagement

HR helps boost employee engagement and satisfaction. Happy employees can be more productive and loyal.

How HR works with other departments

Department

How they work with HR

Department

Operations

How they work with HR

They work together to plan and manage your workforce. This makes sure you have the right number of employees to run your business.

Department

Product team

How they work with HR

HR can provide training to help your product team. This helps them get the skills they need.

Department

Finance

How they work with HR

They need to work together to budget for things like salaries and benefits.

Department

Marketing

How they work with HR

Marketing helps HR attract talent. They help create a good image that makes it easier to attract talent. 

Department

IT

How they work with HR

IT support with technology. This can help make HR’s work easier and make sure the data they work with is secure.

Department

Legal

How they work with HR

HR helps you follow labour laws and regulations. They can handle employee issues. This means they work to help to lower legal risk.

Department

Customer services

How they work with HR

Providing service and sales skills, HR can help drive better customer experiences.

Department

Leadership

How they work with HR

Working with leadership on strategy, HR can help to make your business goals happen. They also support leadership development.
Introduction - HR and people
Chapter 2 - People, policies and processes

Chapter 2

People, policies and processes

Read time:

4 mins

HR roles

There are many parts to HR. If you are a small business, one person can look after many of them. Larger teams can hire more people to look after different parts. Let’s look at some of the HR roles you might think about for your business. Feel free to look at any you think may be of interest. Not all the roles will be needed, but it might help you plan for the future by knowing your options.

What about HR policies?

To run a smooth and fair business, you need policies. They help you to make sure all your people understand what they should do and why. Policies can help you avoid issues and risks. HR can help you to create and look after these.

Let's look at some of the ones you should think about.

Policy

Why it matters

Policy

Code of conduct

Why it matters

This tells people how they should behave at work. Topics include things like values and ways of working. It also explains what can happen if people don’t follow the rules.

Policy

Harasssment

Why it matters

This policy protects people from harassment. It explains how to report issues and makes it clear how you’ll handle complaints.

Policy

Health and safety

Why it matters

This covers things like the health, well-being and physical safety of your people.

Policy

Rewards

Why it matters

This makes clear how you’ll reward your people for their work. It covers salaries, bonuses and performance reviews.

Policy

Flexibility

Why it matters

Do you allow employees to work flexible hours? Can they work from anywhere? Give the options available and what they need to qualify. It should also show how to request these options.

Policy

Security

Why it matters

This protects your assets and information. It secures both the physical workplace and online. Make sure to include cybersecurity policies.

Policy

Sustainability

Why it matters

This makes sure your business stays committed to sustainable growth. Doing this helps create a positive employer brand. It can also attract clients with similar values.
Chapter 1 - The purpose of Human Resources
Chapter 3 - Budgeting for HR

Chapter 3

Budgeting for HR

Read time:

3 mins

Why do HR need a budget?

Budgeting for HR is very important. A good HR budget reserves money for salaries, benefits and other HR needs.

Let’s look at what a HR budget needs to cover.

 

Key parts of a HR budget

  • Salaries and wages - The biggest part of the HR budget is covering employee pay
  • Benefits - Health insurance, retirement plans and other perks all need to be covered
  • Training - Employee training, workshops and development
  • Hiring - This includes things like ads, recruitment agencies and interviews.
  • Technology - Money for software to help make HR processes smoother
  • Legal - Costs of following laws and handling legal issues
  • Engagement - Activities to increase your employees' satisfaction
  • Employer taxes - Like employer contribution to National Insurance (NI)
  • Employer pension costs - You will also need to contribute to your employees' workplace pensions

What tools do HR use?

HR needs the right tools to work well. Let’s look at some of the main types. Every business will have their own needs, so explore the ones that work for you.

Human Resource Information System (HRIS)

This system stores and manages people data. Things like holidays and personal details. It helps keep all of this safe and in one place.

Applicant Tracking System (ATS)

This tool helps manage the hiring process. Tracking applications, scheduling interviews and managing candidates. It can make hiring easier and faster.

Payroll Management Systems

These manage pay. They calculate things like salaries and taxes. It can help to make sure your people get paid correctly and on time.

Performance Management Software

This software helps with goals, feedback and reviews. 

Learning Management System (LMS)

This helps create and track training. It offers online courses and monitors progress. 

Analytics and reporting tools

These tools analyse HR data. They help to make informed decisions.

Chapter 2 - People, policies and processes

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Lloyds Bank Academy is committed to providing information in a way that is accessible and useful for our users. This information, however, is not in any way intended to amount to authority or advice on which reliance should be placed. You should seek professional advice as appropriate and required. Any sites, products or services named in this module are just examples of what's available. Lloyds Bank does not endorse the services they provide. The information in this module was last updated on 19th August 2024.

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