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Dilanka Dilanka is a Business Development Manager at IceHrm. You can contact her at dil[at]

Build a Strong HR Department To Face This Modern World – For SMEs

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People can be unpredictable and constantly changing in response to environmental stimuli. Therefore, it can be difficult for an HR manager to predict workflows and employee behavior for an entire organization. For this reason, human resources plays a crucial role in controlling and managing the internal structure of a company. Still, some people wonder whether a company can function without an HR department. In this article, we explore the importance of human resources and whether a company can function without it.

What are the 7 HR functions in 2023?

  1. Recruitment and staffing
    Recruitment and staffing is a well-known function of the human resources department. Sometimes people think that this is the only job they do. The task includes various goals, e.g. identifying job needs, advertising for applicants, filtering potential candidates, conducting interviews and assisting with hiring, providing necessary training, and onboarding for the position.
  2. Performance management
    Benefits are the result that an employee will receive from the employer for his or her contribution. The human resources department is the link between employer and employee. This includes planning wage and salary policies and budgeting compensation. Wage and salary policy includes salary structure, pay date, bonuses, incentives, insurance, allowances, etc. Benefits administration directly impacts a company's operating costs.
  3. Relationships with employees
    Human resource management involves managing all internal and external stakeholders of an organization. Building trusting relationships with employers and employees. This includes creating and implementing a pleasant work culture, listening to employee problems, dealing with diversity, taking disciplinary measures and ensuring a healthy work environment.
  4. Competency management
    Human resource management involves managing all internal and external stakeholders of an organization. Building trusting relationships with them involves creating and implementing a pleasant work culture, listening to employees' problems, dealing with diversity, taking disciplinary actions and ensuring a healthy work environment.
  5. Performance management
    Performance management is a strategy for increasing the productivity of the entire workforce. By using performance reviews, feedback, corrections, transfers, or firing of underperforming employees, companies are able to create a competitive and skilled workforce. In addition, restructuring can retain talented employees and ensure the success of the company.
  6. Dealing with HRMS
    Operating a human resource management system (HRMS) is a modern obligation for HR managers. This also opens up new opportunities for filling positions in the human resources department. There are new roles for HRIS analysts, HRMS specialists, HRS administrators, HRIS coordinators, HR software managers, and so on.

Why do companies use HRMS software?

In short, it simplifies everyday HR functions. It is a tool that can perform essential HR functions using programmed algorithms, including employee data management, analytics, payroll calculations, and employee organization. Some HR systems like IceHrm HRMS Software have a bundle of HR automation options that can reduce errors while ensuring industry standards. HR software typically allows HR departments to work more efficiently and focus on strategic initiatives such as talent development and retention. Some entrepreneurs believe that HR software is essential for modern small and medium-sized businesses to compete in this dynamic market.

Management of regulations
Compliance with laws and regulations is an important factor in the operation of any business. Companies must comply with a variety of legal regulations to avoid legal and financial penalties, protect their reputation and retain their license to operate. Human resources managers must ensure that their company complies with all labor regulations.

What are the general laws that HR needs to know?

⁕ Equal Employment Opportunity (EEO) Laws
⁕ Fair Labor Standards Act (FLSA)
⁕ Family and Medical Leave Act (FMLA)
⁕ Americans with Disabilities Act (ADA)
⁕ Occupational Safety and Health Act (OSHA)
⁕ Immigration Reform and Control Act (IRCA)
⁕ National Labor Relations Act (NLRA)
Laws and regulations vary from region to region, but these are the general rules for each HR department.


A strong human resources department is crucial for any company to build an efficient workforce. In this fast-paced environment, monitoring and analyzing human resources becomes child's play thanks to modern HR software. A dedicated HR team that understands and implements effective HR practices can attract and retain top talent, ensure compliance with labor laws and regulations, foster a positive company culture, and ultimately drive business success.

With the help of technology and HR software solutions, even a small business can build a strong and efficient HR department that can meet the needs of the modern world.

Don't be afraid to switch from manual to automatic management like IceHrm, sign up now!

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