Why HR is Crucial for Your Business


As a successful business owner, you know what it takes to be profitable and competitive in your industry. No matter what products or services your company offers, you know that your business must run as a well oiled machine: Each department must observe standard operating procedures, maintain proper interaction with other business sectors and achieve established goals. Your sales and marketing teams are also critical cogs in the wheel, as they bring qualified customers to your door.

When your business is humming along smoothly, you might not be giving much thought to how a human resources department should fit into the mix. After all, you don’t fix what’s not broken, especially when considering the necessary investment in new HR personnel and resources. However, there are several reasons why HR is crucial for your business.

Incorporating a HR department boosts company efficiencies

Conflict Resolution

Disputes among your employees are inevitable, especially considering their different backgrounds, work personalities and levels of experience. There’s bound to be disagreements and contrary opinions about how things should be done or what needs to happen to achieve a certain goal. HR department personnel have special training with at least a Diploma of Human Resources online. They are about to deal with these potentials for conflict, enabling them to smooth over tensions and encourage a positive work environment. By strengthening the bond between and among employees, your company benefits from concerted efforts.

Employees as Assets

You may not immediately appreciate the value of your staff to your bottom line, but the HR department does. The importance of your employees becomes especially important when they provide multiple functions, such as sales/marketing, shipping/logistics. In smaller businesses, HR can help manage the void and quickly fill the gaps in cross-functional environments when one person leaves.

Corporate Image

One of the most convincing reasons why HR is crucial for your business is to create an image that attracts talent. Your business excels when you have the best and the brightest on board, so it’s important to establish the image that your company is THE employer of choice in your industry. You only achieve this prestige when you’re an enterprise that’s top notch and well known for the way you treat your staff. HR departments can facilitate and spread this message to benefit your company.

An effective HR manager plays various critical roles

Training & Development

Your business can’t grow unless your employees develop intellectually and stay current with trends in your industry. After all, it’s easier to train the staff you have as compared to hiring new people and getting them up to speed. A qualified HR manager plays a critical role in establishing training and development program that evaluates employees and determines where additional education can be a benefit. Another training and development factor that demonstrates why HR is crucial for your business is identifying those employees that are in the wrong position, even though they have high levels of motivation. Their effort may be better expended and appreciated if given the right opportunities.

Showcasing your Company’s Principles

Whether you’re a business owner or project manager, you’re dedicated to maintaining your company’s values through whatever product or service you offer. In fact, you’ve probably invested much of your advertising budget into highlighting your company’s reputation for quality, passion and other characteristics that help you sell yourself. While you might not immediately turn to your HR department as a way to showcase these principles, the human element is actually one of the most effective ways to transmit this message. Your employees’ word-of-mouth sells faster than paid advertising in this respect.

Employee Satisfaction

A HR professional is typically tasked with measuring personnel satisfaction, which is one of the most difficult metrics to determine. Considering its importance in employee retention, satisfaction should be a priority goal for companies. Surveys, focus groups and an interview process can help your company hang onto top talent and motivate your staff to improve. When dissatisfaction becomes a factor, your HR manager has the expertise to identify specific areas that need your attention.

Once you understand why HR is crucial for your business, you’ll see that the investment in related resources should be a priority for your company. Not only will your business run more efficiently, but a qualified HR manager and support staff can play a significant role in morale. Your employees are your most valuable company asset, deserving of the benefits that a well-developed HR department can provide. Making room in your business and budget for human resources may look like a high upfront cost, but the advantages over time are immeasurable to the success of your company.

The author for the College of Adult Learning blog posts is Helen Sabell. Helen is passionate about adult and lifelong learning. She has worked with some of the leading names in the Australian university and TAFE sectors across her extensive career in the Education industry. She has designed, developed and authored many workplace leadership and training programs, both in Australia and overseas. Helen also works with a select group of organisations consulting in People Management & Development, Education and Change. See Helen’s blog at the College for Adult Learning website here.

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