1. HR source & Recruits Top Talent

HR is the front line of your business when it comes to sourcing talent. They know where to post jobs to get the best candidates. They have experience using job boards and recruiting software fast track your hiring process.

  • Finding Employees
  • Assessing Candidates
  • Negotiating Job Offers

A core part of why human resources is important is that it will help you target the right balance of salary and benefits to entice desired job candidates to join your firm. They know what a job should pay based on the skills, experience, and education as well as job duties. They even understand regional pay ranges and shift differentials.

  1. HR Ensures Labor Law Compliance

Many small businesses don’t recognize the importance of human resources management until after they’ve received an audit, fine, or penalty.

Eg, remitting the accurate amount via payee, ECA, could be delayed due to operational business need, this may result in penalties or compliance issues.     Again, for example, safety – In a small business, this role falls squarely on the HR team. Those HR staffers are responsible for the people side of your business they help the company assess potential risks to employees and comply with safety regulations.

  1. HR Ensures Workers Happy & Productive

While it may seem HR’s job is all about paperwork, once the requisite compliance stuff is managed, HR professionals, add value by helping to monitor your workplace culture and support your workers. They keep tabs on the happiness of your people assets, similar to how an airline mechanic “listens” to identify and prevent potential problems.

  • Reducing Turnover

Employee turnover is rarely a good thing. It means people are leaving your company, and it’s costly.

  1. HR Creates a Great Work Environment

Your business likely monitors its reputation through customer feedback. You want to ensure your customers come back, buy more, and tell their friends. HR does this monitoring for you on the employee and culture side of your business.

  1. HR Manages & Tracks Employee Productivity

Let’s be honest. You don’t hire employees just to make them happy. You hire them to do a job. Although its common sense that they’ll do a better job if they’re happy. The importance of human resources management beyond employee engagement is that individuals trained in HR offer many levers to track and improve employee productivity.

  1. HR Supports Business Competitiveness

The ubiquitous phrase, “people are our most important asset,” is only true if the workers on your team have their basic needs met. If not, people can be your quickest path to failure and begin to exhibit toxic behaviors in the workplace. Human resources are so important because the HR staff is the ones managing all the things that contribute to the optimization and productivity of your people resources

I hope this article helps you to understand the functions of HR and how important it is to your business.

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