Why a Business Needs an HR Department

Sometimes it may cross your mind why your business needs an HR department. But if you think about it, the HR department is always working steadily in the background of your business making sure everything is running smoothly. They are important in many areas; from strategic planning to the image of the company. So below are the different departments of HR and how they work within your business.

Training and development: The Human Resources Department provides training and development for new employee orientation. It makes sure that the company’s fair employment practices are followed too. It encourages the development of employees for management and supervisory roles within the business. When your company begins to grow then, HR can find candidates from among your employees already working also for advancement because they are already being trained and know the company culture.

Improving job performance: The HR department has a performance management system. This system makes sure that employees are hired for jobs that they are qualified to perform. Too, if an employee’s performance is below par, then steps can be taken to correct the problem or to let the employee go by this department.

Corporate Image: Because every business wants to be known as an “Employer of Choice,” HR selects only the most qualified candidates then. Proper recognition by people outside of a company on how the company treats its employees is the best way to become an employer of choice too. By HR also knowing what potential employees are looking for during job interviews so that company culture is maintained, only the most suitable candidates will be chosen.

Cost savings: If the HR department has a selection process and a well-constructed recruitment plan, then advertising job postings, benefit plans for new employees that are started only to be terminated by firing unqualified hires and training sessions will have minimal costs. To hire or replace employees with training can be costly for small businesses too. But if the HR department has it all together, then costs can be slashed.

Employee satisfaction: Employee satisfaction is important in keeping employees. HR can determine the level of satisfaction among employees. By having focus groups, employee surveys, and a good exit strategy for employees so that bad word of mouth isn’t done then; the HR can discover employee dissatisfaction and handle those issues.

Compensation: HR compensation specialists set compensation structures which are realistic. It finds out what the competition pays for similar skills in the same business, industry; or in the area. Then they make sure that the wages and salary are within the same wage structures.

Safety: Safety is important, and employers are obligated to provide safe conditions in which to work. HR has safety and risk management specialists. Their purpose is to make sure the business is in compliance with the U.S. Occupational Safety and Health Administration. This department maintains work logs then and other records. It also implements programs to reduce workplace injuries and fatalities. Safety awareness, dealing with hazardous chemicals and the proper handling of dangerous equipment come under this department of HR.

Liability issues: The employee relations part of the HR investigate, identify and resolve workplace issues which could instigate lawsuits. This covers allegations of unfair employment practices, harassment laws and federal and state anti-discrimination practices.

Benefits: This section of HR can negotiate group package benefits for employees. The benefit specialists work to reduce the costs to the company which are associated with attrition, turnover and hiring workers; or replacing those who have left or have been fired. They also know which are the best benefits to attract new employees and retain them.

Control of the budget: HR can help with budget restraints by curbing excess spending. This can be done by trimming workforce management costs. HR can also ensure a realistic and competitive setting of wages. This is accomplished by salary analysis, studying employment trends and the labor market based on job functions.

Conflict resolution: Conflict in the workplace is bound to happen with the diverse backgrounds, personalities, and levels of work experience in employees. An HR manager who is trained to handle these types of situations can identify conflicts and resolve them, restoring a harmonious working relationship again.

As you can see, there are many reasons to have a Human Relations department in your business.