The Importance of HR in an Organization

Importance of HR

As a practice, organizations and businesses both small and large depend on three key resources which are: physical resources such as equipment and materials; financial resources including debit, credit, and cash; and people. In all organizations or a business as a resource, there is no doubt that people play a significant role influencing the success or failure of an organization.

Arguably, every part of an organization boils down to people. In this case, an organization managed by people can be more profitable, do better, lead more effectively and can create brand loyalty. This strategic management of individuals contributes to the progress of an organization and the achievement of the corporations’ long and short-term objectives. Among those people that play a vital role in the achievement of an organization is the human resource (HR).

The human resources department is fundamental to a corporation. The people under this department perform more duties including realizing that all employees of the organization have their individual personalities, goals, perceptions, and preferences and therefore they cannot be perceived as a whole.

They are also entitled to a duty of realizing that an organization has to be aware of its employee’s needs and requirements, to understand and evaluate these needs for the employees, and to perceive their jobs as their responsibility and not merely as an obligation. The department of human resource management plays a significant role in helping the organization achieve its strategic goals by attracting, retaining, and developing employees.

Having come a long way from traditional personnel to the growing corporate world, the human resource department has developed to be very strategic to an organization within different areas, ranging from strategic planning to the image of the company. In small businesses, human resource practitioners who are well-rounded expertise deliver several services to employees.

Most of the areas maintained and controlled by HR enhance employees’ experience throughout the workforce while strengthening business operations. In the current world, it is possible to find all organizations have a human resource department. The department is considered to have the potential of managing the most important and valuable resources of an organization.

It is a critical business function, helping companies succeed in hiring employees, keep them engaged and support their development as well as their life goals. Arguably, an organization without a properly functioning human resource department is likely to fail in achieving a higher level of efficiency and workforce management.

There are so many reasons why human resources (HR) are important in an organization. Here are some of the most significant reasons.

• Utilization of human and non-human capital- the department of human resource plays a huge role of making the organization realize the significance of the human capital in respect to its economy. Notably, human capital is important particularly for smaller organizations as workers, quite often, perform cross-functional duties.

The HR department teaches the organization how to utilize this human capital along with those that are non-human and so the firms. Organizations aiming to effectively utilize their resources and increase the profit consider inviting the HR management to formulate the required policies as well as objectives.

It improves the organization’s bottom line with the knowledge of how human capital affects the success of the organization. Leaders who have expertise in HR strategic management participate in the corporate decision-making that underlie current staffing assessments and projections for future needs of the workforce based on the demand of the business.

• HR contributes to the bottom line- From the fact that human resource touches virtually almost all aspects of the worker’s experience, it impacts a range of outcomes in a business. The department works in collaboration with the business to identify the organization’s structure and tools that support higher employee productivity and performance. HR helps to reduce turnover rates by supporting the growth of a positive workplace culture that helps the organization retain its employees. It also helps in training participation, where it identifies programs for training and development that build the knowledge and skills for employees.

• Wages and Salaries- The HR compensation specialists develop realistic structures for compensation that set the wages of an organization competitive with other businesses within the area in the same industry or rather the companies competing for workers with similar skills. They carry the role of conducting extensive wage and salary surveys to maintain the cost for compensation in the line with the organization’s current financial status along with the projected revenue.

• Analyzing Benefits- Notably, benefits specialists can reduce the organization’s costs that are associated with turnovers, attrition, and hiring replacement employees. HR is important to an organization because they have the skills and expertise that are necessary to negotiate group benefits packages for workers, in the budget of the organization and consistent with economic conditions. HR also familiarizes with the employee’s benefits most likely to attract and retain them. In one way or another, this can reduce the organization’s costs that are associated with the turnover, hiring, replacement, employees and attrition.

• Safety and Risk Management- In every organization, employers are entitled to the obligation of providing safe working conditions. The HR specialists for workplace safety and risk management manage compliance with the Occupational Safety and Health Standards and regulations by maintaining accurate work logs and records. They also develop programs that help in reducing the number of workplace injuries and fatalities. These specialists also engage employees in promoting awareness and safe handling equipment that might be dangerous along with other hazardous chemicals.

• Minimizes liability issues and ensures employee satisfaction- The HR specialists for employee relations help to minimize the organization’s exposure and liabilities that are related to allegations of unfair employment practices. They identify, investigate and resolve issues concerning the workplace especially those that are left unattended, could spiral out of control, and embroil the company in legal matters pertaining to federal and those of states anti-distribution and harassment laws. Last but not least, HR is important in an organization as they help to ensure that employees achieve high-performance morale and satisfaction level throughout the workplace. They do this by creating strategies to strengthen the employer-employee relationship.

They can also administer surveys for employees’ opinions and seek workers’ input regarding job satisfaction and the ways by which employers can manage and sustain good working relationships.

All these among several others are some of the reasons why HR is important in an organization. People within this department are behind the failure or success of an organization as they are responsible for almost all of the most critical contributions to the success of a business. Curious on how to start a HR consultant company? Check out HR Coach Australasia to know more.

You May Also Like

About the Author: Barry Lachey

Barry Lachey is a Professional Editor at Zobuz. Previously He has also worked for Moxly Sports and Network Resources "Joe Joe." he is a graduate of the Kings College at the University of Thames Valley London. You can reach Barry via email or by phone.