How Does Core HR Work?

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Core HR refers to the essential tasks and processes that an HR department needs to get done on a daily basis. You might consider it the foundational, principal or mandatory tasks and programmes that make up your average HR team.

In this article, we take the time to outline:

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

  • The functions and processes that fall under core HR.

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

Optimise your core HR process across the entire employee lifecycle. Download our guide for help.

What is core HR? 

Core HR (core human resources) is an umbrella term referring to the primary tasks of an HR department. This typically includes how an HR department goes about recruiting, onboarding, managing, developing, paying employees and more.

Why is core HR important? 

Core HR is greatly important for effective HR management. When you have core HR processes, and a system, in place, you can effectively manage the entire employee journey.

Some examples of core HR in practice may include:

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?

Personio HR task management for core HR
An all-in-one HR software, like Personio, can help manage all of your core HR work (and then some).

An 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?

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 core HR processes?

To manage all the core HR processes and the information and important 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?

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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

How much does core HR software cost?

The price of HR software is going to vary depending on what you need. Ideally, you should be able to pick and choose the features that you need the most, to create a pricing package that makes sense for your unique organisation's needs.

A prime example of core HR software: Personio

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 one of our HR experts today.

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