What Is Human Resource Management? Careers, Skills, and Getting Started

Human resource management (HRM)—sometimes simply called human resources (HR)—involves managing a company's employees in ways that advance larger business and work culture goals. HR is made up of many different parts, and an HRM career may focus on one part exclusively, such as compensation, training, or performance, or a combination of related parts.

In this article, we'll discuss human resource management, its importance, key responsibilities, and ways to get started in this line of work. Afterward, if you're interested in an HR career, consider enrolling in the HRCI Human Resource Associate Professional Certificate, where you'll learn about acquiring talent, fostering talent, compensation, and more.

What is human resource management (HRM)? 

Companies of all sizes rely on human resource management (HRM) to keep business running smoothly and efficiently. HRM focuses on effectively organizing, coordinating, and managing a company's current employees. This includes various actions, including recruiting, hiring, onboarding, training, compensating, retaining, and motivating. 

HR professionals also develop and enforce policies and procedures that help ensure employee safety, including adhering to federal and state laws that may work to protect employees’ private information and ensure their physical safety and mental and emotional well-being.

The importance of human resource management

HRM's methodology—sometimes referred to as human capital—is based on the principle that employees bring value to a company. Investing in employees and strategically supporting their needs can improve employee satisfaction and motivation. Employees who are well-trained, competent, valued, and supported by their employers will likely have the skills and incentives necessary to carry out the company's goals and contribute to larger successes.

Develop employees' skills.

HRM aims to create a highly skilled workforce and boost confidence and competence so that employees are motivated to contribute more productively to business goals. To achieve that, HR might provide:

• Tuition reimbursement programs

• On-the-job training

• Mentorships within an organization

• Career development programs to help employees explore their potential

Foster a productive workplace culture.

HRM focuses on company culture and job satisfaction. Much of what motivates employees comes from the culture in which they work. Employee feedback opportunities can alert HR professionals to areas that are going well and others that may need improvement, and employee engagement programs can foster an inclusive and collaborative workplace culture.  

Protect employees.

HRM also protects employees. HR professionals manage legal documents, policies, and regulations, identify what applies to their organization, and find effective ways to educate employees and enforce company policy. HRM aims to be an ally or partner to employees. HRM emphasizes employee development while protecting employees from discrimination, workplace hazards, and unfair compensation. 

5 key parts of human resource management (HRM)

The human resource management field includes recruiting new hires, evaluating employee performance, ensuring fair compensation and benefits, training employees and supporting education and development, and protecting the health and safety of all employees. These are critical cornerstones of the work of HRM professionals. From crafting a job posting to providing continuing education options, HRM functions at all stages of an employee's journey with an organization. To be an effective HRM professional, you will need a mix of personal and technical skills like recruitment strategies, creating compensation plans, and communication and team building. 

1. Recruitment 

An effective recruitment process is at the foundation of HRM. If you can recruit good talent, you can build on their skills and invest in employees for years to come as they add value to the organization. Equally important is company culture. You want employees that add to the culture of the organization. Some common recruiting tools HRM may use include job aggregators like Indeed or SimplyHired, video interviewing, or even social media sites like LinkedIn. 

2. Evaluation and performance management  

HRM uses data to track employee performance to ensure a highly trained and capable workforce. The data compiled can also be used to change staff training methods, implement a merit-based system for raises, and more. HRM professionals use formal measures like performance reviews and informal methods like interviews or surveys. 

3. Compensation 

Compensation can mean salary, commission, benefits, time off, and other non-monetary benefits. HRM looks to the industry standard to set salary rates, commission rates, and benefits. This ensures fairness and allows for a consistent company standard. Some organizations may use performance reviews to adjust an employee’s salary, among other measures. 

4. Employee development and learning 

Engaged employees are effective employees. HRM understands the importance of a workforce that is challenged but also supported. Most employees want opportunities for advancement and to feel competent and valued in what they bring to an organization. Part of HRM is providing these learning opportunities to employees. This might include tuition reimbursement programs, on-the-job training options, conferences, conventions, or certification programs. Aside from individual learning, HRM can also use employee development and learning to help employees adapt to organizational changes, such as system upgrades, technology shifts, and new policies. 

5. Employee health and safety

The safety and well-being of an organization’s employees are critically important aspects of HRM. Employee health and safety covers a lot, such as safety against harassment, discrimination, or bullying in the workplace. It can mean physical safety that would involve building fire code compliance. It can also mean adherence to labor laws that protect an employee's rights in the workplace. Safety in the workplace means cybersecurity or safeguarding an employee’s personal information. A lot goes into protecting all aspects of employees’ health and safety, and it is the job of HRM professionals to ensure that protection. A few ways HRM professionals may go about this is by installing security cameras, enforcing internet usage rules, implementing a zero-tolerance policy, or creating restricted access areas.

HRM careers

HR professionals have important jobs that can be both rewarding and fulfilling. There are many different teams that make up an HR department, so it's useful to think about which team might be the best fit for you. Perhaps you like talking to people and identifying their talents (recruitment) or working with data to determine appropriate pay levels (compensation).

Some of the more traditional teams include:

• Recruitment

• Training

• Pay as you earn (PAYE) and payroll

• Performance management

• Employee relationship management

• Employment law and contracts

• Health and safety

3 entry-level HR roles

Working in HR will require building experience before you advance to the roles we outline a bit further down. Some common entry-level HR jobs include:

Payroll specialist

• Average US base salary: $56,352

• Job description: Whether a company is small or large, payroll requires an organized professional capable of overseeing a vast amount of data. Payroll specialists process payroll, which may include inputting direct deposit information, adjusting salaries or wages based on promotions, printing physical checks, and more.

Human resources assistant

• Average US base salary: $46,711

• Job description: As a human resources assistant (sometimes called an HR coordinator), you'll support the larger efforts of an HR team and sure its going succcess. This can include all manner of duties—and may depend on the area you support—but this work can include identifying talent, adjusting employee benefits documentation, supporting performance improvement initiatives, and more.

Recruiting coordinator

• Average US base salary: $54,094

• Job description: Similar to the support an HR coordinator offers, a recruiting coordinator assists the more mid- and senior-level members of a recruiting team. They may set up job postings, parse resumes, identify talent, and help set up interviews.

*All US base salary averages are sourced from Glassdoor in December 2024.

3 advanced HR roles

Once you've gained three to five years of experience in HR, you may be eligible for the following managerial roles.

Training and development manager

• Average US base salary: $98,448 

• Job description: A training and development manager oversees employment training, implementing training initiatives to build employee skills. This role often may be responsible for communicating a company's mission and values, and creating the trainings themselves.

Human resources manager

• Average US base salary: $86,467 

• Job description: An HR manager oversees either an entire HR department or portion of an HR department, depending on the company’s size. This role hires HR staff, implements policies, oversees payroll and benefits, and advisesg managers or other supervisors from other departments.

Benefits manager

• Average US base salary: $101,509

• Job description: A benefits manager oversees a company's benefits program, which often entails health care, retirement, maternity and paternity leave, and much more. Benefits managers may be responsible for finding new benefits vendors to align with budget needs, reviewing budget plans for areas of improvement or new offerings, and developing communications around benefits.  

*All US base salary averages are sourced from Glassdoor in December 2024.

How to get started in human resources management

There are different options for beginning an HRM career. Let's review some of the more common pathways.  

Consider a degree.  

Sixty-seven percent of HRM professionals hold a bachelor’s degree in human resources, business, psychology, or a related field, and 14 percent have a master’s [1]. Common HR degree coursework includes workplace diversity, business ethics, labor relations, strategic HR, and workforce planning. Some programs may also require internship experience. 

Build HR skills.

It's important to develop your HR skills in areas such as performance management, customer service, payroll processing, communication, leadership, and organization. In addition, you may want to familiarize yourself with popular HR software programs like ADP Workforce Now, Bamboo HR, and Workday.

Gain HR experience.

Get HR experience through internships and entry-level positions, such as those we outlined above. In these entry-level roles, you’ll assist in the major duties of HR and build experience to keep advancing. You may also want to join professional organizations and attend networking opportunities, like conferences and conventions, to gain HRM knowledge and connections. 

Invest in professional development.  

Consider certificates or certifications to enhance your skill set and strengthen your resume. There are many different HR organizations that offer these kinds of trainings. Conduct research to identify which would be beneficial for your goals.  

• HR Certification Institute offers eight different certifications, including the entry-level geared Human Resource Associate Professional Certificate. It does not require any educational prerequisites and you do not need any prior experience in HR.

• Society for Human Resource Management (SHRM) offers two different certifications for HRM professionals. These are the SHRM Certified Professional (SHRM-CP) and the SHRM Senior Certified Professional (SHRM-SCP). You don’t need previous experience in HR, and there are no educational requirements for the SHRM-CP. The SHRM-SCP does have requirements for both experience and education. 

• WorldatWork provides certifications specifically designed for individuals who work in payroll or benefits. Any HR professional could benefit from these certifications, as most HRM professionals handle finances, payroll, and budgets. You can earn a Certified Compensation Professional (CCP) certification, Certified Executive Compensation Professional (CECP) certification, Certified Benefits Professional (CBP) certification, and more.

Build key HRM skills with Coursera

Completing professional training can be a great way to enhance your performance in your current role and prepare for career advancement.

• To learn about the foundation of human resources, consider the HCRI Human Resource Associate Professional Certificate. Over five courses, you'll gain a strong understanding of talent acquisition, compensation, and compliance.

• To delve deeper into HRM, sign up for the University of Minnesota's Human Resource Management: HR for People Managers Specialization. Over five courses, you'll learn about processes such as recruiting, managing performance, and managing compensation.

• Develop your abilities in compensation with the ADP Entry-Level Compensation and Benefits Analyst Professional Certificate. Over seven courses, you'll engage with real-life scenarios and complete hands-on practice in nine key compensation areas.