5 Reasons HR Is More Important than You Think
When human resources departments were conceived, companies needed someone to handle payroll and paperwork. Business owners were not typically thinking of hiring, firing, disciplinary actions, and training. Many employees from just a few generations ago got jobs based on who they knew and got fired at will. Training was often on the job, and you had to hope for the best. Today, HR departments are the backbone of organizations, and that’s a good thing.
1. HR Is Essential for Recruiting and Hiring
Human resources departments now truly represent their name — human resources. Once, an owner or a manager would hire someone based on a recommendation. Or, they’d have an interview and “go with their gut.” Then, if they didn’t like the results, they’d just fire a person. This haphazard approach meant spending more money than necessary on hiring, training, and firing. After all, hiring the right employees and retaining them can save tons of money.
Now, with HR analytics, HR departments can see exactly which departments are hurting, and what types of team members are needed. They can see which qualifications are critical to performing certain tasks, and they can recruit qualified candidates accordingly. During interviews, HR representatives can ask the right questions to really dig into interviewees’ motivations and expectations. This way, companies are more likely to have high employee retention.
2. Training and Development Programs Are Driven by HR
Another critical factor in increasing employee retention is training and development. Employees who get professional development opportunities have 34% higher retention than those who don’t. People don’t want to spend their time at work feeling disconnected. Indeed, they’d rather leave a company if they think they have a chance to learn and grow somewhere else.
For this reason, a strong HR department can be a huge asset to your organization. HR is responsible for designing programs and scheduling classes for your employees to learn on the job. They can match employees’ natural qualities with enrichment programs that will help them advance through the company. Those employees are then more likely to feel valued, contribute more, and stay with your company longer.
3. Corporate Culture Is Established and Maintained by HR
Positive corporate culture is critical to the happiness and success of your employees. Anyone who’s ever worked in any workplace can tell you that workplace culture spreads quickly. A negative culture can turn one unhappy employee into dozens. It can lead to bullying, quiet quitting, and even, in today’s world, a smear campaign online. You could find your business blasted on social media, all because of a toxic workplace.
The good news is that a positive corporate culture starts with a well-supported HR department. Empower your HR department to hold all of your team members accountable for their behavior. Ensure training programs are implemented that encourage collaboration, communication, and open-mindedness. And have your HR representatives sit with employees for regular coaching and guidance through their career paths. This approach is more likely to foster a growth culture.
4. HR Is Trained to Resolve Conflict
When problems do arise, you don’t want them to fester. You might have a situation handled poorly by an employee, an ongoing problem that hasn’t been addressed, or a negative relationship in the workplace. Any of these issues can lead to a toxic environment that becomes a negative corporate culture. Conflict that goes unaddressed becomes conflict that multiplies and spreads, and it spreads quickly.
Your HR department can nip this situation in the bud before it spreads. HR representatives are typically trained in conflict resolution, so they can dig into the problem and discover the root issues. They can also figure out if you’re dealing with an employee who needs to be let go, or if the relationship is worth salvaging. However the conflict needs to be handled, you can rest assured HR is on the job, and your corporate culture can be saved.
5. Regulatory and Legal Compliance Is Handled by HR
Finally, the issue of regulations and compliance is a relatively new one for many companies. Where once company owners were kind of “the lord of the land,” now there are regulations in place for everything from financial documents to, you guessed it, human resources. A poorly handled document can cause as many problems for you as an improperly fired employee. Owning a company now comes with tremendous responsibility in terms of compliance.
Fortunately, it is your HR department’s job to be up-to-date on all issues of regulation and compliance. Your recruiting, hiring, and firing process should run smoothly and within the confines of the law. And any private documents or financial information your company handles should remain filed properly and in compliance with privacy laws and financial regulations. That way, you can avoid heavy fines or even the shutdown of your business.
Yes, HR departments are essential parts of any successful business today. They will drive the overarching culture of your organization, keep your people aligned with your goals, and resolve any conflicts that arise. Of course, they also handle all of your paperwork, payroll, and regulatory and compliance issues. Far more important than most businesses realize, your HR department is here to keep things running smoothly and keep people happy and productive. You don’t want to picture a world without it.
