The Personnel Department or PD is the area of the company responsible for all the bureaucracy related to employees , from their hiring to their dismissal.
The professionals of this sector are responsible for managing payroll, benefits, vacation , certificates, licenses, control point and severance funds, ensuring that the company complies with the labor laws and collective agreements .
Thus, the department’s main competence is to mediate relations between employees and the organization, ensuring that both parties follow what was agreed in the employment contract .
How important is the Personnel Department?
Because of this, the area must work with great care, organization and detail, since it deals with a large volume of data and calculations .
But in addition to dealing with bureaucratic issues, the PD is also responsible for mediating the contact between the company and public agency, issuing guides and declarations to keep the organization in good standing.
In this sense, the Personnel Department is of great importance to an organization, both with regard to the control of labor legislation and the storage and organization of data about employees , which can be useful to justify promotions and dismissals.
However, it is important to emphasize that the greater the number of employees and the size of the company, the more complex the organization of the Personnel Department becomes . Because of this, it is essential that the sector has the help of technological tools to optimize bureaucratic processes and help in the control and organization of data.
Activities of the Personnel Department
As we have seen, the PD is a very bureaucratic and procedural sector, which is why it has numerous responsibilities and specific activities in its routine. Below, we’ll further explain the main functions of the department.
1-Monitoring and compliance with legislation
The labor legislation has many details and rules that the company must comply with, from admission to dismissal of employees. Thus, one of the main responsibilities of the PD is to know these laws in depth to ensure that the organization meets the requirements.
In addition, the Personnel Department is responsible for issuing documents to tax agencies and staying on top of all changes and changes in labor laws, adjusting its policies so that the company adapts to the changes.
2-Control of working hours
Another important activity of the department is the control of the collaborators’ journey through the clock . Attendance is a way for the company to ensure that the professional’s working hours are in accordance with the contract, so it is up to the PD to closely monitor entry and exit times, as well as frequent absences and delays.
Through time control, the Personnel Department has important information and data for the payment of compensation and can better control absenteeism rates , certificates and leaves.
The Personnel Department is also responsible for making the calculations and issuing payrolls at the end of each month based on time control and other information, such as overtime, DSR, discounts for absences and night hours.
But in addition to earnings and discounts, the sector also collects fees and contributions , schedules the payment of employees and distributes pay slips.
Thus, it is important that the PD has enough knowledge about each of the items pointed out in the statements. This is because it is common for employees to have questions about discounts and contributions. In these cases, it is up to the professionals to clarify all questions about the payroll .
4-Admission and dismissal of employees
Although the recruitment and selection processes are a function of HR, the Personnel Department is the department designated to carry out all the bureaucratic part of admission , such as employee registration, medical exams, signing a portfolio and collecting data for benefits.
In addition, processes related to dismissals, such as calculation of severance pay , prior notice, approval, FGTS guides and unemployment insurance are also part of the PD’s routine.
5-Vacation and Leave Management
Another function of the sector is organizing the vacation dates of employees and making their payments. It is important that the PD schedule each employee’s vacation in a way that does not impact team productivity and track vacation requests to ensure that no employee exceeds the legal time between breaks.
Still, leaves and leaves, both for medical reasons and for maternity leave, are also part of the sector’s purview and it is important that it monitors whether employees are being paid by the INSS , even on leave.
6-Documentation and Archiving of Documents
The Personnel Department is also responsible for all the preparation of employment contracts for a fixed or indefinite period, in addition to internship and service provision contracts.
But in addition to preparing the terms of the contract, the department also collects and archives all documents from employees , such as medical certificates and tax documents, always keeping the file updated.
Another function of the sector is benefits management. To this end, the PD must collect all the documents necessary to include new employees in benefit programs, in addition to carrying out the correct management so that everyone can use them without problems.
Thus, the department is responsible for contracting and administering corporate benefits , such as:
- transportation vouchers;
- meal and food vouchers;
- medical and dental insurance;
- life insurance;
- childcare assistance;
8-Control of taxes, fees and contributions
Finally, another function of the PD concerns the payment of taxes, fees and contributions so that the company remains within the labor rules.
In this context, it is important for the sector to know the main rates, especially those deducted from the employees’ payroll, and organize the company so that payments are made without delays and fines. Among the main taxes that are the responsibility of the PD are INSS, FGTS, CAGED, RAIS and DIRF.
What skills does the PD professional need to develop?
Many companies still do not have a specific sector of the Personnel Department, so they choose to delegate the activities of the area to general practitioners , such as employees in the financial and administrative sector or even one of the partners.
However, this is a mistake. Since it is essential to have qualified professionals for the sector, who have specialization in the area , in addition to some specific skills and competences, such as:
- preventive view of problems;
- training and constant updates;
- good communication;
- negotiation skill;
- data analysis capability;
- close relationship with accounting.
What are the positions and functions of the Personnel Department?
Like other areas, the Personnel Department also has a hierarchical division of positions and functions. Thus, the training of the professional will depend on the level of responsibility and need for knowledge in each position.
Some routine steps can be performed by any professional on the team, while others should be directed to professionals with greater training and qualifications . Next, we’ll explain the PD positions further.
1-PD manager, manager or coordinator
He is the professional with the highest level of hierarchy in the sector, therefore, he must be able to manage the team and propose solutions . Usually, the manager has a degree in administration and a long trajectory in the PD field.
The analyst is second in the hierarchy and must also have very in-depth knowledge. Generally, this professional performs more complex tasks and is responsible for ensuring that payroll and terminations go through without errors or undue discounts.
The assistant is responsible for assisting and supporting the manager and analyst in more complex activities . In addition, he has autonomy to perform minor tasks, as long as he is guided by the particularities of the legislation.
The assistant is a support professional in all areas and works mainly on simpler tasks in the PD routine. Thus, he is responsible for organizing and filing documents, filling in data in spreadsheets, among other tasks. But he must be monitored continuously, especially when he is starting the job.