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Why HR is Important to Any Company

Tuesday March 6th 2018

It goes without saying that building a successful company is hard work. But trying to build a successful company without the help of a dedicated human resources department is nearly impossible. And yet, surprisingly, many people don’t know the function of a human resources department outside of hiring and firing employees. But the responsibilities of any good HR manager go far beyond these tasks.

HR managers bridge the gap between upper management and employees, taking responsibility for understanding and enforcing company policies that allow the team to thrive. An HR department should also help provide a push toward the successful completion of all company objectives.

Here are three important responsibilities of HR, showcasing why this department is so important for companies across every industry.

Budget Control

Finances might be the last thing you think of when you think of an HR department. But HR departments are often responsible for helping a company stay within their budget, simply because they are involved in every part of the process of business planning and development.

HR is responsible for managing employee benefits, which means they are solely responsible for negotiating reasonable rates that will keep the company under budget. Through market research and salary analysis, HR managers are able to help determine competitive and realistic wages for all employees, ensuring that the company is attracting and retaining high quality employees, while also ensuring that there is room for financial growth and upward mobility.

This function alone is vital to the success of any company, especially those with budget constraints.

Conflict Resolution

Conflict resolution may be the most well-known function of a human resources department, and it is certainly one of the most important. HR managers serve as mediators for any internal conflict, often diffusing unpleasant situations before they reach critical levels. By closely following company policies, HR managers are able to act impartially and consistently in every situation, which provides stability for the company workforce.

Without the conflict resolution services that any HR department can offer, employees may be left feeling as if their concerns are unimportant, or they are simply expected to deal with a situation that may be uncomfortable or upsetting to them. Just knowing that there is a conflict resolution process in place will go along way to increase employee satisfaction, as employees will never have to worry that their concerns will not be heard and dealt with appropriately. Simply put, HR’s role in conflict resolution encourages communication, which is a fundamental building block to any successful company.

Training and Development

If you hope to grow your company from a startup to a successful industry leader, you cannot do so without continuous education for your team. Employees should be encouraged to grow and develop along with the company and have access to training opportunities to enhance their talents. It is much more cost-effective for companies to focus their efforts on training their existing workforce and promoting from within, as opposed to increasing the payroll budget to hire additional staff and more qualified workers. Additionally, employees who are given the opportunity to grow with the company are overall more satisfied and much more likely to stay.

Human resources departments are responsible for researching, scheduling, and tracking employee training and development. They conduct assessments for each employee to establish the type of training that would best benefit that particular employee and, in turn, the company. Along with providing training opportunities for your team, HR departments develop performance management systems that track progress for each member of your team, ensuring that each employee is filling a role that is best suited to their particular talents and skill level, and is one for which they have been properly trained.

The benefits of having a great human resources department are many, but in the simplest of terms, they keep your business running like a well-oiled machine by keeping a finger on the pulse of every aspect of your business.

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