Why is HR important? | 10 points on why HR is important for Organizations

Why is HR important?

Human resources are important to organizations in myriad areas, ranging from strategic planning to company image. HR practitioners in small businesses with well-rounded expertise provide many services to employees. The areas in which HR maintains control can enhance an employee’s experience throughout the workforce while strengthening business operations.

“HR management helps bridge the gap between employees’ performance and the organization’s strategic objectives.”


Strategic Management:

HR improves the company’s bottom line with its knowledge of how human capital affects organizational success. Leaders with expertise in HR strategic management participate in corporate decision-making that underlies current staffing assessments and projections for future workforce needs to be based on business demand.

Wages and Salaries:

HR compensation specialists develop realistic compensation structures that set company wages competitive with other businesses in the area, in the same industry, or companies competing for employees with similar skills. They conduct extensive wage and salary surveys to maintain compensation costs in line with the organization’s current financial status and projected revenue.

Analyzing Benefits:

Benefits specialists can reduce the company’s costs associated with turnover, attrition, and hiring replacement workers. They are important to the organization because they have the skills and expertise necessary to negotiate group benefits packages for employees within the organization’s budget and consistent with economic conditions. They are also familiar with employee benefits that are most likely to attract and retain workers. This can reduce the company’s costs associated with turnover, attrition, and hiring replacement workers.

Safety and Risk Management:

Employers have an obligation to provide safe working conditions. Workplace safety and risk management specialists from the HR area manage compliance with U.S. Occupational Safety and Health Administration regulations by maintaining accurate work logs and records and developing programs that reduce the number of workplace injuries and fatalities. Workplace safety specialists also engage employees in promoting awareness and safe handling of dangerous equipment and hazardous chemicals.

Minimizing Liability Issues:

HR employee relations specialists minimize the organization’s exposure and liability related to allegations of unfair employment practices. They identify, investigate and resolve workplace issues that, left unattended, could spiral out of control and embroil the organization in legal matters pertaining to federal and state anti-discrimination and harassment laws.

Training and Development:

HR training and development specialists coordinate new employee orientation, an essential step in forging a strong employer-employee relationship. The training and development area of HR also provides training that supports the company’s fair employment practices and employee development to prepare aspiring leaders for supervisory and management roles.

Employee Satisfaction:

Employee relations specialists in HR help the organization achieve high performance, morale, and satisfaction levels throughout the workforce by creating ways to strengthen the employer-employee relationship. They administer employee opinion surveys, conduct focus groups and seek employee input regarding job satisfaction and ways the employer can sustain good working relationships.

Recruitment and Onboarding:

HR recruiters manage the employment process, from screening resumes to scheduling interviews to processing new employees. Typically, they determine the most effective methods for recruiting applicants, including assessing which applicant tracking systems are best suited for the organization’s needs.

Hiring Processes:

HR professionals work closely with hiring managers to effect good hiring decisions according to the organization’s workforce needs. They provide guidance to managers who aren’t familiar with HR or standard hiring processes to ensure that the company extends offers to suitable candidates.

Maintaining Compliance:

HR workers ensure that the organization complies with federal and state employment laws. They complete the paperwork necessary for documenting that the company’s employees are eligible to work in the U.S. They also monitor compliance with applicable laws for organizations that receive federal or state government contracts through maintaining applicant flow logs, written affirmative action plans, and disparate impact analyses.

For more useful information, browse the resources guide today!

Related Articles: