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Why Human Resources Professional is Important in an Organization

Why Human Resources Professional is Important in an Organization

For small businesses and large organizations alike, a human resource professional or personnel function can be helpful for much more than simply processing payroll or handling the open enrolment season once a year. Human resources plays an essential role in developing a company’s strategy as well as handling the employee-centred activities of an organization.

 Human Capital Value

Having an in-house human resources function is important. An in-house human resources staff or a human resources professional can increase the understanding of how important human capital is to the company. For small businesses, in particular, human capital is critical because so many smaller firms have employees who perform cross-functional duties. With a smaller workforce, if just one person leaves, it leaves the company with a huge gap to fill and a potential threat to the company’s profitability.

 Budget Mechanism

Human resources curbs excessive spending through developing methods for trimming workforce management costs, which includes negotiating better rates for benefits such as health care coverage. In addition, human resources ensures competitive and realistic wage-setting based on studying the labour market, employment trends and salary analysis based on job functions. As some small businesses have budget constraints, this human resources function is especially helpful.

 Conflict Resolution

Workplace conflict is inevitable, given the diversity of personalities, work styles, backgrounds and levels of experience among employees. A human resources manager equipped with a human resources certification or a staff person specially trained to handle employee relations matters can identify and resolve conflict between two employees or a manager and employee and restore positive working relationships.

Role of Human Resource Manager

 

 Training and Development

Human resources conducts needs assessments for the organization’s current workforce to determine the type of skills training and employee development necessary for improving skills and qualifications. Companies in the beginning or growth phases can benefit from identifying HR training needs for existing staff. It’s much less expensive than the cost to hire additional staff or more qualified candidates. In addition, it’s a strategy that also can reduce turnover and improve employee retention.

 Performance Improvement

Human resources develops performance management systems. Without a human resources staff person to construct a plan that measures performance, employees can wind in jobs that aren’t suitable for their skills and expertise. Additionally, employees whose performance falls below the employer’s expectations can continue on the payroll, thereby creating wasted money on low-performing employees.

 Corporate Image

Businesses want to be known as the “employer of choice.” Employers of choice are the companies that receive recognition for the way they treat employees; they are the companies for whom people want to work. Becoming an employer of choice means human resources balances recruiting the most qualified applicants, selecting the most suitable candidates and retaining the most talented employees.