Which are the HR Functions?

If your company is growing and you are thinking about setting up the structure of a HR Department, there are certain things that you need to consider before doing any work.

We have listed all the points to consider so you don’t waste your valuable time.

For years Human Resources has been only personnel, or just hiring and firing. Luckily, we are moving away from that, but that is still the case in many enterprises. However, the HR function can vary from one company to another one, specially depending on the industry, the local labour law, which can make harder the function in certain countries or regions, and needs on any given time.

But there is always a common ground for any HR department which covers the following key functions of an hr department.


HR Areas:

The CIPD (Chartered Institute of Personnel and Development in the UK) designed a map for the profession and we believe it can be clarifying for an small and medium enterprise owner to start understanding what a HR department need and which are the specific functions of human resources.


The map divides it into 8 areas. However, we have divided some of them in more, as we understand that as a SME owner or manager you don’t have to have the knowledge of what all those areas entitle.

Some places add health and safety to this list. However, in bigger organisations that usually goes under operations and office management.

Before you start working on any structure, analyse how this is currently working in your organisation.

  • Is someone currently doing any of those activities? Do you have someone working with some of the functions of a HR Manager?
  • What are your priorities for the next year as a business?
  • What do you want to achieve as a business?
  • What do you need in order to do that?
  • Is your business compliant with the current employment laws of the country?
  • How do you think introducing HR services will help you to achieve those business objectives.

Focus on those questions and you will have the first activity to start working on.

We will keep publishing different articles for each of the areas so you can planify how to structure each of those areas

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