The Importance of Core HR for Any Organisation


Which HR processes and tasks constitute “core HR”? The duties of a human resources (HR) department seem to be constantly expanding as business needs evolve, but certain functions will always remain core.

In this article, you’ll learn:

  • The definition of core HR and why it is important to modern organisations.

  • The functions and processes that fall under core HR.

  • How to manage core HR processes and the role of HR systems.

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What is Core HR? 

Core HR (core human resources) is an umbrella term that refers to the HR department’s primary functions, the data they capture about the organisation’s employees and the software they use to enable core people processes.

Why is Core HR Important? 

Core HR is important for effective HR management because of all the key information it includes. For instance:

  • Knowing about the various employee job titles and training needs can aid in succession planning

  • Understanding how benefits are being used by employees might impact the benefits strategy during annual planning

  • Tracking how many employees are in various departments across the company at a moment in time can help teams plan for hiring needs and budget for wage costs

Other advantages of core HR include streamlined and automated processes, improved internal communication, a centralised location for essential data storage, improved privacy and security and the ability to gain actionable insights through data analytics.

What Are Core HR Functions?

The HR department plays many roles within an organisation, but certain functions are commonly considered to be core to the business. These include:

  • Collection and storage of employee personal information

  • Payroll

  • Employee recruitment and hiring

  • Internal relations

  • Income tax withholding

  • L&D

  • Talent management & succession planning

  • Benefits

  • Compliance, security, and safety

  • Culture and change management

  • Etc.

What Are Considered Core HR Processes? 

Within these functions are the core HR processes that every organisation generally needs to operate.

Core HR processes include the full employee journey (recruitment, selection, hiring, onboarding, offboarding); managing the performance and growth of each employee (training, performance appraisals, performance management); and other key processes like benefits administration, employee relations and human resource planning.

How Do You Manage Your Core HR Processes?

To manage all the core HR processes and the information and data involved, HR teams often choose to utilise some kind of software. This simplifies the storage, sorting, access and disposal of core HR data and information, while also improving regulatory compliance, saving time and making processes more efficient.

Historically, core HR software and technology have been 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 also started to be used to refer to the software or technology used to manage the core HR information and processes, so you may hear the terms used interchangeably.

What is Core HR Software?

Core HR software consolidates core HR-related data across the organisation and provides tools for automating and streamlining HR processes such as onboarding, performance management, and payroll. Generally, core HR software simplifies the hiring and administrative processes around employee data, enabling organisations to remain compliant with daily HR tasks. The software can either stand on its own or be integrated with other HR systems.

Every core HR software option will have different capabilities, but some functions commonly included are:

  • Employee data storage

  • Employee self-service portal (time off, benefits enrolment, updating personal details, etc.)

  • Org chart

  • HR document storage and management

  • Document signing (agreements, contracts, etc.)

  • Data visualisation dashboards

One example of core HR software is Personio, which makes the core HR tasks that have to happen in every company as simple and efficient as possible. Our opinion is that if you get them wrong – or spend too much time getting them right – your strategic HR initiatives will never get off the ground.

See how Personio can simplify your core HR processes by booking a demo to speak with an expert.

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Personio is an all-in-one HR software designed for every stage of the employee life cycle.

Using Personio, you can manage all your most important HR processes from one place. Recruit, manage, develop and pay your employees from one centralised HRIS.

For HR professionals, you can unlock new levels of productivity and influence. Become the HR business partner that your business needs, by getting back time for what matters: your people.

For line managers, Personio seamlessly builds automated performance cycles, tracks vacation days and keeps employee information up-to-date (and in a compliant fashion).

For employees, no more fussing with cumbersome tools and processes. Employees can request days off, change their information and keep track of goals and more. All from one place.

Speak with an expert today about your HR needs and how Personio can meet them. Or, give Personio a spin for yourself by starting your very own free trial right now. It’s all yours for 14 days.

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