8 Reasons Why the Human Resource Department is Important
Human resource development is a significant aspect of any organization. From small businesses to large scale conglomerates, human resources have an important role to play. They do much more than simply processing payrolls or handling the open enrollment season once in a year. What are the major reasons for the existence of a human resource department in any organization? Here’s a look:
1. Human Capital Value
Having an in-house human resources department is necessary as they have a clear understanding of how significant is human capital value to the company’s bottom line. For small businesses human capital is of importance because several employees perform cross-functional duties. With a smaller workforce, if just one person leaves, it leaves the company with a huge gap to fill and a potential threat to the company’s profitability.
2. Budget Control
Budget control a major task of the human resource department. Human resources cuts down excess spending through developing methods for pruning workforce management costs, which includes negotiating better rates for benefits such as health care coverage. In addition to that, the HR department also ensures that the right wages are paid and they are all up to the industry standards.
3. Training and Development
Providing the required training and also ensuring overall development in the organization is yet another major role of the HR department. Companies in the beginning or during their growth phases can benefit a lot from identifying training needs for their existing staff.
4. Conflict Resolution
Conflict at workplace is something that is inevitable. Herein comes the importance of human resources to a great extent. Human resources managers are specially trained to handle such situations, resolve conflicts and resolve positive working relationships.
5. Employee Satisfaction
Human resources personnel are usually charged with the responsibility of determining the level of employee satisfaction. With carefully designed employee surveys, developed focus groups and a proper exist interview strategy, human resources determine what underlies employee dissatisfaction and find ways to fix it.
6. Performance Improvement
Performance management systems are developed by human resources departments in order to ensure employees are able to give their best. They construct performance plans whereby they can usually end up helping employees to ensure that they are able to perform their very best.
7. Cost Savings
The cost to hire new employees, training them, providing the required time, can lead to high cost for employees, especially small businesses. However, if there exists a proper, well-planned recruitment and selection process, the human resource function can minimize expenses to a considerable extent.
8. Sustaining Businesses
Through succession planning that human resources develop, the company identifies employees with the requisite capabilities and eventually transition into leadership roles within the company. This is an important function as it can guarantee the organization’s stability and future success.
Author Bio: A digital media professional, Sampurna Majumder has been lending her expertise by penning articles and blog posts on jobs, career, HR trends and the recruitment industry.