Is HR Important For Your Business?

An effective human resources (HR) department forms part of the foundation of any successful organisation. It’s not just about attracting top talent, but retaining it too. HR plays a significant role in shaping employee development, managing performance and contributing to the achievement of business objectives.

The goal of HR is to cultivate a cohesive, positive work environment. Employees have the right to feel that they have a place to go to for communicating concerns, and have confidence that those concerns will be addressed. Otherwise, employee dissatisfaction will lead to decreased productivity, negative attitudes and lost talent.

Companies That offer human resources software solutions in the UK include:

  1. Rippling
  2. Deel
  3. BrightHR
  4. Factorial

Does Your Company Require HR?


The general rule is that if you have a workforce of around fifty, you should have a full-time HR position. Smaller companies aren’t required to have an HR manager but would certainly benefit from one, even if it becomes a part-time role for an existing employee.

It doesn’t always make financial sense for a small organisation to hire somebody full-time. If you have long-term employees and aren’t required to hire often, it can be a waste of resources. However, the need for an HR ‘presence’ still remains. There needs to be a dedicated person who employees can speak to should issues arise, or if a new employee is hired.


HR Benefits For Your Business


HR acts as a bridge between management and employees for large organisations. Additionally, it plays an important part in attracting top talent to the company and assists with the onboarding process. Another task of an HR department is to keep that talent, making sure that employees are happy and productive.


Talent Acquisition And Retention


Every organisation wants top talent who are skilled at what they do. The role of HR is to screen potential candidates to see if they are a good fit for the role and meet the requirements. This usually includes reading through CV’s, assessing qualifications and also conducting interviews.

Once the candidate is hired, the HR manager is involved in the onboarding process. They guide the new employee on how the organisation operates, the rules that need to be followed and will usually arrange check-ins for the first few weeks to see how they are settling in.


Employee Development


Employees that are constantly learning and developing give companies a competitive advantage. These workers know how to stay ahead of the curve, and they are knowledgable. While this requires motivation on the employee’s part, it is HR’s responsibility to design and implement training programs for their professional growth.


Performance Management


For large organisations, management needs to be aware of how their employees are performing. HR assists with the tracking of this, and setting goals or targets for employees to reach. At the same time, HR managers can identify where employees are falling short and work with them to improve performance. This is to make sure that employees are aligned with the company’s objectives, and have a plan in place to achieve them.


Employee Well-Being


Creating a positive work environment fosters productivity and results. Another key responsibility of the HR manager or team is to create enthusiasm among employees by implementing work-life balance policies, team-building initiatives and providing a space where employees can discuss mental health concerns.

It has been proven across all industries that when employee well-being is taken into account and nurtured, productivity is increased, absenteeism and resignations are decreased, and job satisfaction grows.


Compensation And Benefits


To attract and retain top talent, the HR team has the task of creating compensation and benefit structures. Top-performing employees want to feel that their work is being acknowledged and rewarded. These packages are designed to maintain employee satisfaction and loyalty to the organisation.


Achieving Growth With HR


As a business, regardless of size, the importance of HR cannot be overlooked. It supports the day-to-day operations of your company as well as the organisation’s long-term objectives. Essentially, HR becomes the glue that forms a strong foundation for your organisation to succeed and grow, bringing management and employees together to achieve the same goal.