5 REASONS AN HR DEPARTMENT IS CRITICAL FOR BUSINESS SUCCESS

The global Human Resource market is projected to grow into a $38.17 billion industry by the year 2027 according to Grand View Research Inc. This will be an 11.7% increase in CAGR from this year. This alone should go to show how vital the HR department is to any company.

The modern-day HR department has expanded its role from the traditional hiring and firing. Matter of fact almost all activities in the workplace today are impacted by the HR team. They perform so many functions that ensure employers get the most out of their employees and vice versa. Let’s have a look at 5 major roles of the Human Resources department that are critical in running an organisation and contributing to a higher ROI.

The HR Team Facilitates Employee Recruitment and Onboarding

The responsibility of recruiting new talent rightfully falls to the Human Resource department. They put out notices the company is hiring, go through resumes, arrange interviews and select new hires. This process is very important and should be done with the utmost diligence; Wrong hires can corrupt your existing teams and processes just as skilled individuals can greatly benefit a company. Additionally, 87% of employees according to LinkedIn, say a good interview process is likely to change their thoughts on a company or role they initially doubted.

Once new employees have been brought on board, it is the HR department that carries out their induction. This involves introducing them to people, tools and processes they will be working with. By facilitating a smooth onboarding process, Human Resources increases employee productivity, engagement and. creates a positive workplace culture.  

The HR Department Curates an Engaged Workforce

An efficient HR department curates a workplace culture that encourages employees to be more engaged and productive. It should identify which individuals are suitable for which roles so everyone is in their element and happy. It should also come up with ideas and programs to help employees interact, communicate and collaborate.

87% of employees need and expect their employers to help them balance their personal and work commitments. This is according to a report by Glassdoor. This can get complicated bearing in mind different employees have different needs. Luckily, this is exactly what an HR department is for. They identify challenges employees are facing and aim to solve them so as to facilitate higher productivity. Typical examples include things like setting up a daycare and breast milk pumping room for new parents or adding healthy snacks to the cafeteria’s menu. If employees are happy and settled, they are bound to be more engaged and productive.

The HR Team Supports Growth and Development of Employees

For starters, Human Resources ensures employees get the tools and resources they need to work. They also create a workplace environment that supports optimal performance and improves employee experience. More importantly, however, they organise seminars, training and development programs for employees. Such programs help employees hone their knowledge and skill set. With this knowledge, they can advance their careers and achieve set goals and objectives. Some HR departments even counsel employees on career paths they should take.

HR Contributes to A Company’s Growth

The HR department contributes to a company’s bottom line in many ways. One, it ensures the company has the talent and workforce it needs to function. Two, by keeping employees engaged and creating a positive workplace culture, they facilitate higher productivity and consequently higher ROI. Three, a happy work environment leads to higher employee retention, something a lot of companies struggle with.

Four, the HR department solves employee relation issues which cost companies an average of $125,000 if taken to court. Five, HR helps managers become better leaders by equipping them with the necessary skills through training and coaching programs. A good manager is essential for employee satisfaction and company growth.

The HR Department Solves Conflicts

Another important role HR teams play is solving conflict. Most companies hire diverse individuals. These individuals come from different backgrounds and have personalities. They also have different ways of doing things. These differences, although good, often cause conflicts in the workplace. Either amongst employees or between employees and supervisors. HR identifies these conflicts and works towards solving them in-house.

Apart from the above-mentioned roles, the Human Resources department ensures employees adhere to company policies and the company to employment laws. It also introduces new technology to employees and keeps a database of their information including their responsibilities, performance assessment, discipline record, and contract. They can avail this information when an individual is up for a promotion, contract renewal or whenever it is warranted. The HR department additionally conducts surveys on workplace experience.

At The Manpower Company (TMC) our HR consultancy services gives your business the perks described while keeping your costs down. Sustaining a full department becomes inefficient if your processes are outdated and your employees are un-engaged. Get in touch today, for an HR audit and find out where you can grow further.

Ruth Kimani

2 Comments

  1. Great post! The single most important resource To any organisation is its people, especially when persuaded, like an orchestra, to hit the right noteS and TOGETHER, create GREAT MuSic…EEH..VALUE!

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