Core HR

How does core HR work?
Core HR refers to the essential tasks and processes that an HR department must complete on a daily basis. You could think of them as the basic, most important, or mandatory tasks and programs that make up an average HR team.

In this article we take the time to outline these:

• The definition of core HR and why it matters for modern organizations.
• The functions and processes that are part of the core area of human resources work.
• How to manage core HR processes and what central role HR systems play in this.

What is Core HR?
Core HR (Core Human Resources) is a generic term that refers to the main tasks of a human resources department. This typically includes the way a human resources department recruits, hires, manages, develops, pays employees, and more.

Why is core HR important?
Core HR is very important for effective human resources management. When you have core HR processes and a corresponding system in place, you can make an employee’s entire journey efficient.

Some examples of Core HR in practice are:

• Employee self-service to keep employee data up to date.

• Building a comprehensive onboarding program to support new employees.

• Automated performance cycles to support employee development.

Other benefits of centralized HR management include streamlined and automated processes, improved internal communications, a central location for storing important data, improved data protection and security, and the ability to generate actionable insights through data analytics.

What are core HR functions?
An HR department plays many roles in a company, but certain functions are commonly considered core functions of the company. This includes:

• Collection and storage of employees’ personal data
• Payroll
• Recruiting and hiring employees
• Internal relations
• Withholding of income tax
• L&D
• Talent management and succession planning
• Services
• Compliance, security and protection
• Culture and change management
• Etc.

What is meant by core HR processes?
The core processes of HR include the entire journey of an employee (recruitment, selection, hiring, onboarding, offboarding), managing the performance and growth of each employee (training, performance appraisal, performance management) and other important processes such as benefits administration, relationships with employees and personnel planning.

How do you manage key HR processes?
In order to manage all core HR processes and the associated information and important data, HR teams often choose to use software. This simplifies the storage, sorting, access and disposal of key HR data and information while improving compliance, saving time and making processes more efficient.

In the past, core HR software and technology were referred to and marketed as HRMS (Human Resource Management System), HRIS (Human Resource Information System), or HCM (Human Capital Management).

The term “core HR” has now also been used to refer to the software or technology used to manage core HR information and processes, so the terms are often used interchangeably.

What is core HR Software?
Core HR software consolidates key HR-related data across the organization and provides tools to automate and streamline HR processes such as onboarding, performance management and payroll.

In general, core HR software simplifies the hiring and management processes surrounding employee data and allows companies to remain compliant with day-to-day HR tasks. The software can either stand alone or be integrated with other HR systems.

Each core HR software has different features, but some of these are typically included:

• Storage of employee data
• Self-service portal for employees (time off, registering for benefits, updating personal data, etc.)
• organization chart
• Storage and management of HR documents
• Signing documents (agreements, contracts, etc.)
• Data visualization dashboards

How much does core HR software cost?
The price of HR software depends on what you need. Ideally, you’ll be able to select the features you need most, creating a pricing package that meets your company’s needs.

A prime example of core HR software: IceHrm
An example of HR core software is IceHrm, which makes the core HR tasks that arise in every company as simple and efficient as possible.

We believe that if you approach these tasks incorrectly – or spend too much time doing them right – your strategic HR initiatives will never get off the ground.

See how IceHrm can simplify your core HR processes.