Key Functions of a Human Resource Department in UAE

From startups and small businesses to large multi-national corporations in UAE, a human resource (HR) department is necessary to ensure business success. An HR department has duties other than simply handling open enrollment season, which takes place annually, and payroll processing in UAE either on a weekly or monthly basis. 

Five key functions of HR departments in the UAE

Key functions of an efficient and effective HR department, which make it necessary for any business include the following:

  • Conflict resolution 
  • Budget control 
  • Recruitment and Selection 
  • Management of employee performance
  • Succession Planning 


     1. Conflict resolution 

There will most certainly be conflicts and disputes that arise in the workplace no matter how happy and satisfied all the employees are with the jobs that they’ve been given or their managers and co-workers. As there’s a diverse range of work styles, work experience, personalities, and backgrounds of the employees, it is most definitely a given that disagreements and arguments happen.  The HR department of any business, regardless of structure and size, has the necessary skills and tools in handling the relationship between the administration and the staff and amongst the staff members. 

HR professionals can quickly detect issues and resolve conflicts; thus, effectively restoring a positive working relationship all throughout the organization. Additionally, being able to quickly and effectively resolve disputes can increase employee morale and employee satisfaction. 

    2. Budget control 

An HR department develops the methods for cost-cutting that are necessary for workforce management. HR specialists in Dubai, UAE can curb excessive spending, as well as help, save the business money down the line. The methods adopted by HR departments, including specialists providing HR outsourcing in Dubai, UAE, including negotiating better rates in acquiring employee benefits like healthcare insurance. Aside from this, an HR department analyzes employment trends, salaries, and the labor market based on specific job functions. 

This is to ensure the wages provided by the company are both realistic and competitive. Since most small businesses have a strict budget which they need to adhere to, this particular function of an HR department would prove to be very beneficial.

    3. Recruitment and Selection 

Recruitment and selection of staff are arguably some of the most visible HR elements. Recruiting the best candidates and selecting ones that are the best fit for the company are key functions of any HR department, including with HR outsourcing in Dubai, UAE. People, after all, are an organization’s lifeblood. It is, therefore, a key task to find the best fit. 

The request for a new hire often starts when a brand-new job has been created or one that exists has opened up. A direct manager will send the HR department or outsourced HR specialists with a job description. They then will start recruiting the best candidates. With this process, an HR outsourcing team will use different instruments and methods for selection in order to find the people that fit the work. The process of recruitment and selection will include different assessments, several interviews, and reference checks. 

Note: sometimes, there are lots of great candidates that apply for one particular job. In such a case, a pre-selection mechanism will be employed, most especially with HR outsourcing in Dubai, UAE. This is in order to separate suitable candidates. Successful candidates will be shortlisted and then sent onto the next round where they will receive a more thorough and in-depth assessment.

    4. Management of employee performance

As soon as the best candidates have been brought on board, management of employee performance will become absolutely crucial. Personal management is among the many services offered by HR specialists providing HR outsourcing in UAE. It involves helping employees become the best version of themselves in the workplace to boost the bottom-line of the company and improve company productivity. 

More often than not, employees already have a set of responsibilities that they have to manage. Performance management is the structure that will enable the staff to get helpful feedback with their performance.

Outsourced HR professionals in UAE have myriads of businesses trusting them as they help with the annual cycle for performance management. In this process, the specialists take into account the evaluation of peers, the clients, as well as other employee relationships. Companies also hire outsourced HR professionals in Dubai for rewarding and monitoring of employee performance. A result of this is the proper categorization of the employees in low vs. high performers, as well as low vs. high in potential. 

    5. Succession Planning 

Succession planning is invaluable when planning contingencies for when the company’s key employees leave. Having an outsourced HR team or inhouse HR department can ensure a replacement is ready to guarantee the company’s continuity. As a result, the company gets to save a significant amount of money.

Succession planning is usually based on the L&D efforts and performance ratings, resulting in the development of talent pipeline. The pool of candidates ready to fill a position and are most qualified will then be nurtured.

To know more about HR outsourcing in UAE, call us here in Payroll Middle East now.

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