Why Human Resources Is Still So Relevant

For both a small business and large multinational corporations, the function of human resources is far more than processing payroll and hiring people. Human resources function is as essential as any aspect of the business when it comes to strategy. Additionally, any employee centred activities in the organisation rely on human resources.  So, why is human resources still so relevant?

Corporate Image and Reputation

All businesses strive to be known as a great employer. Why? If a business’s reputation can attract all the best young talent, it makes recruitment very easy and cost-effective. An employer of choice is a company that has gained recognition for the way they treat staff, their great work environment, benefits, culture, salary and more. Without human resources, becoming an employer of choice is just too difficult.

The Importance of Human Capital Value

Having human resources in-house is critical to a business of any size. An in-house team of staff or even one human resources expert can do wonders for the concept of human capital. Human resources will increase the understanding of how significant human capital is to the company’s bottom line. For a smaller business, where employees have multiple duties, it’s even more critical. In a small team, if one person leaves, the company is left stranded and then needs to fill a huge gap. Furthermore, finding somebody who can complete the same tasks at the same standard will be difficult. This can take its toll on the business.

Employee Satisfaction

Employee satisfaction is paramount concerning employee retention, culture, morale and productivity. Human resources specialists are trained to determine levels of employee satisfaction. With the help of employee surveys, exit interviews and focus groups, human resources assess dissatisfaction and address those issues to motivate employees. Without having a person dedicated to this, the job will never be done. The business owner or leader doesn’t have time to investigate these issues because they are fulfilling their own role. 

Training and Development

Training and development should never stop, no matter somebodies position or experience. Human resources will conduct a needs assessment for the business's workforce. This will determine the type of skills training that’s needed for improving skills and qualifications. Companies who are seeing growth will benefit from the identification of training needs of existing staff. The process of hiring more staff or somebody who is more qualified will be much more expensive. The training and development of staff is now cost-effective and easy with online education and sites like Upskilled. Training will also help employee retention and reduce turnover.

Budget Control

A budget is critical for any business and without somebody managing a budget, things can get messy. Human resources minimise excessive spending through the development of trimming costs and negotiating better rates for things like healthcare cover. What’s even more critical to a business is the realistic wage-setting. Human resources ensure competitive and realistic wage setting based on the market and relevant research of employment trends and job functions.  To a business with budget constraints, this is invaluable.

Performance Upgrading

Performance management systems allow a company to measure performance and which employee has the suitable skills and expertise for a task. An employee that is not pulling their weight but still getting paid is very detrimental to the company. When an employee’s performance falls below the employer’s expectations, human resources steps in to minimise wasted money.

Conflict Resolution

Conflict in the workplace is inevitable. A diverse selection of personalities, work styles, levels of experience and background means something is bound to happen. Human resource managers or somebody who is trained to handle conflict and employee relations will quickly solve a conflict. Their job is to restore and positive working relationship and find a medium ground where the two employees are happy and satisfied.

Human resources will remain relevant to businesses. People must understand there is a changing role of human resources which will shift as we see different business developments. 


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