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Unlock the power of Human Resources! Dive into the pivotal role of HR in business success. Explore the benefits of the HR department and understand why people are the most crucial asset for any thriving organization.
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Of the various resources a business needs, human resources or people are most important. While money and materials are definitely needed, human resources are the key. This is because it is the people who actually do the work. Many decades ago, businesses would have a personnel department that dealt with employees.
Today’s businesses recognize the importance of people and hence have a human resources (HR) function. The HR function plays a key role in the success of a business. Read on to know more about the HR department benefits and the significance of HR in business.
HR – what is it?
What is human resources is the first question we must answer. Human resources is a function or process in an organization concerned with recruiting, selecting, and training employees. It also handles all issues related to employees including salaries and managing employee benefits. The functions of human resources also include employee engagement to ensure the organization gets the best from employees.
The human resources roles and responsibilities include:
Large companies would have a senior executive heading HR, which may be a director or Vice-President. Smaller companies would have a HR manager or executive handling the human resources job description. The human resources qualification is a degree in management with specialization in HR. They need leadership skills, good communication skills in managing people, and documentation & record keeping abilities.
If you are running a business, it is important you have a HR function in your business. It does not matter whether 10 people do the work or 1 person. What is important is that you recognize the role of human resources by appointing someone to handle the HR function.
To understand the role of HR in company success, it is important to know the benefits a business gets by having a HR function.
1) Finding talent and hiring them
In the competitive world, we live in finding talent is not so easy. It is HR that finds talented people who can add value to your business. Human resources for a business finds the best person suited for the job and hires them. They ensure all the formalities involved including compliance with norms and documentation is complete.
2) Retention of talent
If finding talent is tough, retaining talent is tougher. If you want your people to stay, you must create a conducive work environment. You must offer them benefits that are attractive. You must engage with employees, so they take ownership of their work. This is where HR plays a key role. Human resources and workforce management involves administering salary, creating a work culture, offering attractive benefits, and ensuring employee growth.
3) Employee satisfaction
Just as a business strives to ensure customer satisfaction, so should they try to ensure employee satisfaction. Businesses that used to adopt a ‘customer first’ approach are now following an ‘employee first’ approach. The logic is that if you take care of your employees, they will take care of your customers. HR’s impact on organizational culture can ensure employees are happier.
4) Training and career development
No one wants to be stagnant. Training plays an important role in career development. An employee who receives training will be able to work more effectively. They can take up new responsibilities and produce better results. This would help them move up in their careers. When an employee is assured that they have a path to success, it makes them loyal and motivates them to work better.
5) Resolving conflicts
Conflicts can occur for various reasons. It is vital that these conflicts are resolved quickly to prevent them from causing serious problems. Whether it is conflicts among employees or conflicts between employees and the management, quick resolution is important. HR team members would be trained in conflict management and can ensure conflicts are amicably resolved.
6) Performance improvement
HR devises systems to monitor and measure the performance of employees. Once such a system is established, performance improvement becomes easy. When an employee is able to know how they have performed, they can then understand whether their performance is good, bad, or average. With the help of HR, they can then set higher goals for themselves and improve their performance. Such performance improvement measures help in improving business productivity and also helps in employee growth.
7) Ensuring employee wellbeing
It is the duty of a business to ensure the wellbeing of employees who work for them. Employees need to be physically and mentally fit, so they can do their work productively. If the health of employees is affected, it affects their work. HR is responsible for employee wellbeing. They do this by:
8) Budget control
Managing employees involves costs. A business spends a lot of money in hiring people, training them, offering them facilities and benefits. The HR function needs to ensure the costs are under control. HR professionals can analyze expenses and suggest ways to reduce them. Some measures can include negotiating better health insurance rates, reducing unnecessary office expenses, etc. Budget control helps a business save money.
All the above clearly illustrate the key role played by HR in a business. HR ensures people resources are managed in the best possible way. They ensure talent is retained and an excellent work culture is created. HR constantly engages with employees to motivate them and encourage them to achieve more. In the process, employees benefit since they can grow in the organization and get better benefits. The higher productivity helps the business grow and achieve its goals.
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