This is How Your HRM Becomes the Key to Your Business Success
We show you why you should never do without human resource management.
- Definition: What is Human Resource Management (HRM)?
- Why is HRM important?
- What tasks are there in HRM?
- What is the difference between Human Resource Management and Human Resources?
- What software do HR departments use?
- Conclusion: Good Human Resource Management – all good
- FAQ Human Resource Management
End under-challenged employees and overworked HR managers – with human resource management you can deploy your employees exactly where they are needed according to their qualifications.
A human resource management system highlights the capabilities, motivation, and knowledge of your employees. Instead of merely seeing the labor, HRM focuses on actively using all your employees' competencies. This allows them to tap into their full potential and make a significant contribution to the success of your company.
But what exactly is human resource management? Why is it so important for your company? And what is the difference to human resources? This article answers all your questions about human resource management. Curious? Then hold on, because now we're just getting started.
Definition: What is Human Resource Management (HRM)?
Generally, Human Resource Management can be defined as an advancement of Personnel Management. Its aim is to develop the skills of individual employees and to deploy them in the right company areas.
While personnel management primarily deals with providing and goal-oriented use of personnel, human resource management goes one step further:
Human resource management deals with the skills, knowledge, and potential of the individual employees in your company. Where outdated models prioritize labor, HRM puts all the skills of your employees in the center stage. It's not just about job performance, but especially about the targeted use of all employee qualifications.
No matter what talents and potentials your employees bring into the company, HR managers take care of the efficient and success-oriented management of these. In addition, they support them in developing their skills and are responsible for the appreciation of each employee in their respective company areas.
Recommended HR Tools & Software Solutions
You can find other recommended HR software providers on our comparison platform OMR Reviews. There we have listed over 500 HR software solutions for small and medium-sized companies, start-ups and large corporations that support you in all areas of human resource management. So take a look and compare the software with the help of authentic and verified user reviews:
- HR Suites
- Payroll accounting
- Recruiting, applicant management & personnel resource planning
- Time recording
Why is HRM important?
Good human resource management contributes significantly to achieving your company's goals and promotes the optimal use of your manpower and its know-how.
Imagine if your employees could use all their skills and talents exactly where they are needed in your company. You would promote the development of their skills thereby adapting them exactly to the needs of your company. HRM enables all that and much more.
Human Resource Management Networking
What tasks are there in HRM?
The areas of responsibility of human resource management can be divided into two categories: Personnel Administration and Personnel Leadership.
Personnel administration includes routine tasks such as onboarding suitable employees and drawing up employment contracts and development proposals. Personnel administrators liaise with official agencies, health insurance companies, insurance companies, and other contractual partners. In addition, personnel administration ensures the timely payment of salaries and wages.
HR software such as Sage Business Cloud Payroll supports you or your HR managers in these tasks.
All tools from Sage in comparison, with the most important features and including matching articles, are on ourSage overview page.
Also, the management of personnel data and the recording of vacation and sickness times are part of this. There is also specialized onboarding software to assist in recruiting. Personnel administration can generally be divided into the following areas:
- Recruiting and personnel access
- Personnel controlling
- Personnel organization
- Cost Management
- Personnel policy and care
On the other hand, personnel management deals with the active integration of employees into company processes and decisions. It is important to motivate employees and coordinate them according to their skills. This way, they deploy all their know-how and go home satisfied at the end of the workday.
As a result, they increase their job performance and successfully contribute to achieving the company's goals. HR managers responsible for personnel management also take care of setting and controlling individual goals. In this way, they most successfully promote the potential of all employees. Personnel management can be divided into the following sub-areas:
- Personnel planning
- Personnel development and training
- Personnel appraisal
- Communication and knowledge management
Whether personnel administration or personnel management, HR software and appropriate tools make the everyday life of HR managers easier. Thanks to their comprehensive functions, human resource management becomes child's play. There are also popular HR software solutions for medium sized companies in the market.
And the best part? The range of free HR tools is larger than you might think. Our users have the best Human Resource Software such as Deel compared for you and rated on OMR Reviews.
What is the difference between Human Resource Management and Human Resources?
Human Resources (HR) comprises the intangible assets of a company. In other words: your employees, their knowledge, their skills, their motivation, and their potential are the human resources of your company. The term HR thus refers to all those resources that are tied to your employees and therefore can be referred to as personnel assets.
In order for all human resources to be in the right place at the right time and to be able to contribute to the success of your company, they need well-structured human resource management. So while human resources or HR means your employees and their competencies, human resource management or HRM deals with the goal-oriented administration and management of your personnel assets, aka your employees and their competencies.
Human Resource Management Graphic
What software do HR departments use?
The digitization of business processes does not stop at human resource management. Specialized HR software and tools are already a fixed part of many companies' human resource management. With their comprehensive functions, the tools significantly assist with personnel administration and guidance. Depending on their needs, HR departments choose Human Resource Information Systems, Applicant Tracking Systems, Onboarding software or Employee Engagement Tools. We explain to you what exactly the difference is and why the following software should become a fixed part of your human resource management.
Human Resource Information Systems (HRIS)
Human Resource Information Systems (HRIS) are systems for capturing, storing, and processing personnel data. HRIS are popular digital personnel files with all important information about your employees.
In addition, Human Resource Information Systems support you or your HR department in analyzing, maintaining, and disposing of information.
These are the most popular Human Resource Information Systems on OMR Reviews:
Applicant Tracking System (ATS)/Applicant Management Software
Applicant Tracking Systems, or applicant management software, were developed to ease and optimize the recruitment process. The software covers the entire application process: from job posting creation, through managing incoming applications, to the interview and subsequent hiring.
Often, the ATS is also referred to as Electronic Recruiting. To be successful in e-recruiting, by the way, you should not only count on the appropriate human resource management tool but also focus on your Employer Branding and suitable Employer Branding measures.
The following ATS and applicant management software are user favorites:
Onboarding Software
Onboarding software simplifies the start with freshly hired employees in your company. The onboarding tools should help new employees learn about the company culture and meet with colleagues.
In addition, the software supports HR managers in introducing new employees, automating processes (indoctrinations at the office, scheduling, etc.), and minimizing turnover.
Not only does the HR department benefit from onboarding software, but also your new employees. It gives them an initial overview of all company processes, enables smooth communication between employees and the HR department. Moreover, using pre-onboarding, it informs your newbies in advance about the most important points.
Users have given the following onboarding software tools top ratings on OMR Reviews:
Employee Engagement Software
With Employee Engagement Software, HR managers can enhance the engagement of employees and motivate them to deliver top performance. By real-time information, HR managers always know which measures can inspire employees.
As a result, both your employees and the responsible human resource management contribute to increasing revenue and the growth of your company.
These are the most popular employee engagement software solutions on OMR Reviews:
Conclusion: Good Human Resource Management – all good
Human Resource Management is the core of your company and your employees. With the help of good HRM you can coordinate all participants based on their skills and competencies and deploy them where they can contribute most to the company's success.
This allows you to exploit the full potential of all employees and enjoy a balanced working atmosphere. You can therefore concentrate on other tasks and watch your company grow. What more could you want?
FAQ Human Resource Management
What is Human Resource Management (HRM)?
The Human Resource Management (HRM) of a company is responsible for the success-oriented deployment of all employees. Its central aim is to use the skills, knowledge, and motivation of all employees for the benefit of the company.
What is the difference between HR and HRM?
Human Resources (HR) refers to the intangible assets of a company. This includes, besides the employees themselves, their skills, their knowledge, and their motivation. With Human Resource Management (HRM), all human resources are deployed in a targeted manner to achieve the company's goals.
What are the best HRM software solutions?
Verified users have put different HRM software solutions to the test and rated them for you. The most popular human resource management software solutions on OMR Reviews currently include Personio, Sage Lohnabrechnungand Leapsome.
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