Personalihaldust

Personalihaldust, or human resources management (HRM), is the strategic and administrative management of an organization's workforce. In Estonian context, personalihaldust covers planning, acquisition, development, engagement, and retention of employees to support organizational goals.

Key functions include strategic workforce planning, recruitment and selection, onboarding, learning and development, performance management, compensation and benefits, employee relations, health and safety, and legal compliance. HRM also involves managing HR information systems, data privacy, and analytics to inform decisions.

Role and scope: It can be centralized or embedded in business units, with HR professionals aligning people practices with strategy, shaping organizational culture, managing change, and supporting leadership development. HRM serves as a bridge between management and employees and aims to optimize workforce capability and morale.

Trends and challenges: Contemporary organizations face digital HR, remote and hybrid work arrangements, diversity and inclusion efforts, talent shortages, and evolving regulatory environments. Effective HRM relies on data-driven, flexible approaches while ensuring compliance with data protection laws such as GDPR.

Measurement and outcomes: Common metrics include turnover rate, time to hire, absenteeism, training hours per employee, engagement scores, and the return on investment of development programs. These indicators help link people practices to business performance and guide continuous improvement.