Demystifying the Key Differences Between HR Development and HR Management

Hey there! With companies increasingly competing for top talent, strategic human resource management matters now more than ever. Two critical parts of the HR equation are HR development (HRD) and HR management (HRM). From the outside, they may seem pretty similar – after all, they both deal with managing people.

But once you dive deeper, distinct differences emerge between these two HR sub-disciplines. To provide insight into how HRD and HRM complement each other in optimizing human capital, I‘ll explain:

What roles HRD and HRM play
Where they differ and why that matters
How to maximize their synergy

Let‘s get started!

HRD Focuses on Developing Employee Skills and Potential

Human Resource Development refers to the learning and development activities aimed at helping employees gain the skills, knowledge and abilities to succeed at their current and future jobs.

The core goal of HRD is to drive individual employee growth, performance and motivation by providing:

Training programs – These build critical hard and soft skills. Training can cover technical job skills, workplace compliance topics, leadership, etc. Delivery formats range from instructor-led classes to e-learning modules.
Mentoring and coaching – HRD matches less experienced employees with mentors to provide guidance on careers, networks and organizational politics. Coaches offer tactical support in developing leadership, communication and other interpersonal abilities.
Continuing education support – Many companies offer tuition reimbursement or training stipends to help employees earn degrees and certifications relevant to their roles.
Career development advisory services – HRD professionals advise employees at various career stages on mapping out their growth trajectory within the organization.

According to LinkedIn‘s 2022 Workplace Learning Report, 94% of employees say they‘d stay longer at companies that invest in their careers. By facilitating ongoing skills enhancement and career progression, HRD helps retain and unlock top talent.

HRM Oversees the Full Employee Lifecycle

Human Resource Management encompasses the systems and processes for managing all employee-related programs and practices within an organization. Key responsibilities include:

Talent acquisition – Responsible for recruiting, interviewing and hiring candidates to fill open positions. May also oversee background checks and onboarding new hires.
Compensation and benefits – Develops competitive pay and benefits packages to motivate employees and support retention. Conducts salary benchmarking, sets bonus/incentive structures and manages health/retirement offerings.
Performance management – Implements systems for setting employee performance objectives, providing feedback and evaluations, and determining promotions, rewards or corrective actions.
Labor relations – Interprets and ensures compliance with labor laws and regulations. Also manages relations with labor unions where applicable.
HR analytics – Collects and analyzes employee-related metrics to gain workforce insights, assess HR program effectiveness and guide people decisions.

Unlike HRD‘s narrow focus on learning and development, HRM oversees the full employee lifecycle from pre-hire through termination or retirement.

How HRD and HRM Strategic Priorities Differ

While HRD and HRM both aim to improve organizational performance, they approach this through different lenses:

HRD‘s Strategic Priorities

Build workforce capability – Develop talent benches with skills to meet current and emerging business requirements.
Motivate employees – Boost engagement, job satisfaction and retention by investing in employee growth opportunities.
Enhance individual performance – Help people maximize their productivity, work quality and career trajectory.
Support succession planning – Prepare high-potential employees for leadership roles.

HRM‘s Strategic Priorities

Acquire and retain top talent – Source, attract and keep the people needed to achieve organizational objectives.
Promote culture and engagement – Foster a positive, inclusive workplace culture that keeps employees connected and motivated.
Manage labor relations – Maintain positive union relationships and comply with employment laws.
Leverage HR data – Compile workforce analytics to derive recruiting, retention and talent management insights.
Align HR and business strategy – Coordinate HR practices with broader organizational goals and needs.

So HRD zeroes in on expanding employee capabilities and performance, while HRM takes a big-picture view aligned to overarching business objectives.

Key Differences at a Glance

Let‘s compare some of the major points of divergence between HRD and HRM:

	HRD	HRM
Focus	Developing employee skills and potential	Managing all workforce programs and processes
Scope	Learning, training and development programs	Full employee lifecycle from pre-hire to post-employment
Time Horizon	Strategic – focused on building future capabilities	Balances strategic goals with day-to-day HR operations
Impact	Enhances individual employee performance	Influences organization-wide workforce metrics and culture
Orientation	Employee-centered with focus on development needs	Balances employee wants with business objectives

While integrated, HRD and HRM have unique orientations shaping their priorities and approaches. Understanding these distinctions helps HR leaders play them to their complementary strengths.

HRD and HRM Roles and Requirements Compared

Not only do HRD and HRM differ strategically, but they also require very different skillsets to perform their specialized roles:

HRD Positions and Skill Requirements

Training managers – Experienced instructors adept at presenting concepts and facilitating interactive classes. Must stay on top of adult learning best practices.
Instructional designers – Combination of educators, project managers and creatives skilled at developing engaging training materials and programs.
Internal coaches and mentors – Emotionally intelligent veterans who can share their experience and provide guidance through skillful two-way communications.
Career development advisers – Good listeners who grasp company career ladders and can guide employees based on aptitude and interests.

HRM Positions and Skill Requirements

HR generalists – Versatile HR professionals who can juggle recruiting, employee relations, compliance, payroll, etc. Must have well-rounded HR knowledge.
Recruiters – Part marketers, part salespeople, part HR experts. Need expertise in sourcing, screening, interviewing, closing and onboarding candidates.
Compensation analysts – Analytical, detail-oriented pros who understand compensation laws and stay on top of industry and regional pay benchmarking.
HR analysts – Data wizards who can gather HR metrics, analyze trends and patterns, and derive insights to diagnose issues and guide programs.

So HRD requires more specialized adult education and psychology-based skillsets, while HRM demands generalist abilities plus particular functional competencies like recruiting, compensation analysis or HR systems expertise.

Overcoming Challenges Together

Of course, both HRD and HRM face obstacles in moving the needle on workforce and organizational performance:

HRD Challenges

Convincing managers of the value of development programs and getting them invested in reinforcing on-the-job learning
Keeping training content and methods up-to-date as jobs evolve rapidly
Demonstrating clear returns on investment from training spends
Motivating veteran employees to engage in continuous learning rather than relying on tenure

HRM Challenges

Managing the administrative burden of HR information systems, compliance reporting, payroll, etc. which can limit strategic focus
Overcoming outdated perceptions of HR as a non-strategic business function
Balancing employee desires for higher pay and more benefits with fiscal realities
Adapting HR practices quickly to support changing workplace norms like remote/hybrid work

Rather than go it alone, HRD and HRM can collaborate to tackle shared challenges:

** Have HRD gather input from HRM on critical job skill gaps that training should fill
** Partner on change management and communications to gain buy-in for new HR programs
** Cross-train HR generalists on training administration to alleviate HRD workload
** Have HRM share HR data to help HRD quantify training ROI and priorities

By leveraging their respective strengths and perspectives, HRD and HRM can provide integrated solutions.

Maximizing HRD + HRM = Better Business Results

When HRD and HRM join forces, they can amplify their positive impact on both human and organizational capital:

HRD Boosts Productivity

Employees who lack needed skills and career growth opportunities feel frustrated and disengaged. A Columbia University study found 80% of turnover is voluntary and largely preventable through employee development programs. HRD gives employees the tools and paths to excel.

HRM Controls Costs

HR programs that improve talent attraction, retention and labor relations reduce negative impacts of turnover like lost knowledge, hiring/training costs and operational disruptions. Strong HRM practices save companies $600,000 per year on average according to HR.com research.

Together They Mitigate Risks

HRD strengthens compliance knowledge across the workforce. HRM minimizes adverse legal and reputational risks through employment law expertise. Collaboratively they build ethical, respectful and safe workplaces.

They Enhance Execution

HRD and HRM insights help identify and resolve people-related obstacles to executing business strategy. Together they boost leadership and workforce capabilities to deliver on objectives.

The Results Speak for Themselves

Companies recognized among the Top 100 "Best Places to Work" have:

25% less turnover (SHRM)
2x the job growth rate (Gallup)
4x the profit growth rate over competitors (University of Pennsylvania)

They achieve this through strategic HRD and HRM practices that invest in employees as a competitive advantage!

So in summary, while HRD and HRM play unique roles, they must align and integrate their efforts to optimize individual abilities, energize company culture, and drive enterprise success in today‘s people-centric economy.

Key Takeaways: HRD and HRM Better Together

Hopefully this provided useful perspective on how HRD and HRM balance specialized roles with shared goals:

HRD…

Focuses narrowly on building employee skills and capabilities
Provides training, mentoring, continuing education and career development

HRM…

Manages the full range of HR programs across the employee lifecycle
Oversees talent acquisition, compensation, performance management and labor relations

Together…

They enhance individual and organizational performance
They create positive work cultures that attract and retain top talent
They provide integrated solutions to people-related business challenges

So in your HR role, consider how you can leverage the diverse strengths of HRD and HRM colleagues. Aligning these disciplines boosts business performance by helping companies realize the full potential of their human capital.

Thanks for reading! Let me know if you have any other HR topics you‘d like me to explore.