The Importance Of Human Resources

The Importance of HR

The Importance Of Human Resources

Rochelle van Rensburg | Jan, 22 2021

In the past, the human resources departments (HR) mainly focused on hiring, firing, and annual pay reviews, but in today’s world, their role has broadened considerably, covering a much broader spectrum. They are responsible for managing everything related to the company’s employees, developing and maintaining a healthy company culture, and ensuring the company is law and safety compliant.

They play an essential role in acquiring quality employees in a fast-changing business environment. People are a company’s greatest resource; therefore, the HR department must make sure employees are treated fairly and provided with opportunities to help them grow. This will optimize employee performance and help your company to achieve its goals.

But what exactly is the meaning of the human resources department, and why is their role so important?

Let’s have a look at some of the functions HR specialists bring to the table to ensure the success of your organization:

The development of an engaged workforce and building strong relationships with employees.

Employee morale is supported, and workers develop a deeper commitment to the company’s goals. HR builds engagement in the workforce by hiring the right people for each role, ensuring that employees feel comfortable communicating and collaborating. Managers are also assisted and encouraged to become more effective leaders by valuable feedback and proper training.

Building strong relationships with its employees is vital for the success of every company. The HR department ensures that employees have all the support they need to realize their career goals. It can be anything from introducing new technology, resolving conflict effectively, or introducing a new wellness program. The important thing is HR can act as a counselor providing a rich source of information and support for employees.

Leads recruiting and employee onboarding.

A practical and professional onboarding process leads to increased employee performance and healthier workplace culture. HR ensures that new hires are properly introduced to procedures and people in the company and gives them access to the company organizational chart to learn where they fit into the team.

Assists managers and team leaders and helps employees achieve their career goals.

Managers can become more effective leaders by partnering with HR on resolving conflicts or performance issues. An HR professional can offer assistance when hiring new employees and guide promotion and compensation opportunities.

HR pros design internal training programs to help employees identify and build on their strengths and weaknesses. This makes it easier for them to develop and decide which path in the company they should pursue that suits them best to land their dream job.

Business communications and risk and safety management.

Effective communication is essential for a business to operate successfully. A company’s communication style is defined by the HR department, leads to better client relations, and builds a positive culture.

HR risk management focuses on the specific risks employees could pose to a business. This includes risks around employee behavior, hiring and losing employees, and improper employee management. A good HR risk management strategy will help you make the right hiring decisions, deal effectively with problematic employees, and manage your staff better. It is also HR’s responsibility to ensure your company is compliant with employment laws such as ERISA (The Employee Retirement Income Security Act), FLSA (The Fair Labor Standards Act), and others.

Although HR professionals might not understand the technical aspects of Occupational Safety and Health (OSH), they play an important part in communicating, administrating, and facilitating this process in the company.


Building and maintaining company culture.

Positive and healthy business culture is the drive behind job satisfaction, employee engagement, and staff retention. Performance management, pay, training, development, and recruitment are all essential elements of business culture covered by HR. They establish, maintain, and reinforce the culture of an organization.

Conflict resolution.

An HR specialist’s conflict resolution role is to eliminate the conflict by arriving at a mutually beneficial outcome. The five steps of conflict resolution are:

  • Don’t ignore the conflict.
  • Seek to understand.
  • Emphasize consistency and clarity in the company’s Policies and Procedures.
  • Ensure accountability.
  • Recognize different circumstances.

Introduces technology for the workplace.

HR supports the workforce by implementing technology to help employees get information and communicate with one another. Other digital tools they bring to the workplace are online learning platforms, feedback surveys, and self-service benefits that give the workforce more access to their employment information.

Supports company growth.

Some of the actions HR takes to support company growth are:

  • Implementation of workforce planning software.
  • Conducting succession planning and talent reviews.
  • Identifying high-flyers who can take on expanded roles.
  • Contributes to the bottom line by developing a positive workplace culture.

Legal and regulatory compliance.

HR professionals have a sound understanding of all the laws associated with employment, and they make sure your company is compliant with all of them. This is an enormous and vital part of your business, which should not be underestimated. Unfair or illegal treatment of an employee can be an expensive mistake.

Corporate image.

By instilling the right values in new employees and molding the organization’s environment, the HR department determines the continuity of the organization’s brand at all levels. Human Resource managers are key to the company’s branding because they ensure compliance with work ethics and labor laws and ensure the employees are in sync with the brand image and reflect it externally.


The HR department determines your business culture by handling everything from recruitment, performance management, pay, training, development, and compliance. One of the HR department’s main goals is developing a healthy business culture, which guarantees your company’s success.

Coggno has a wide range of Human Resources online corporate training courses.

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