In every firm or business, regardless of the size, there exists a department that serves as an intermediary between the employer and the employees – the Human Resource Management department. 

Since the initiation of the idea, the Human Resource department has played an important role in the maintenance and growth of companies. They are responsible for the affairs of the employees such as payroll preparation, compensation and benefits, recruitment of new employees, and firing underperforming employees. However, some of these duties have changed in recent years, as the HR department in firms has expanded their duties to create more productive employees to facilitate the productivity of the company. The following functions are the reasons why the HR department is responsible for the success of every firm.

Effective Business Principles: It is the responsibility of the HR department to ensure that employees adhere to the rules of the organization. This aids in the creation of a productive working environment for employees. The HRM team accomplishes this task by organizing an orientation that guides the employees on the firm’s rules and regulations as well as workplace principles. By making wise decisions during recruitment, the HRM can eliminate potential obnoxious job applicants.

Human Capital Value: Part of the duties of the human resources department is the analysis of the human capital value of employees. Sometimes employees work more than they are paid and this is a discouraging factor in the advancement of a company, this can demoralize the employees and cause a decline in the company’s productivity. The job of the HR department is to make proper job analysis and emphasize the importance of human capital value to the company’s administration and relieve the duties of overworked employees.

Training and Development: The productivity of a firm mostly relies on the productivity of the employees and this means if the employees are lagging in their duties, so will the firm be lagging in productivity and revenue. It is the job of the HRM team to keep the employees up to date by organizing training sessions for employees to polish their skills. This is a very important factor in the development of any business. Proper training of the current employees means a reduction in the cost of hiring new employees as the current ones are capable of delivering results.

 Improve Employee Satisfaction: A happy employee is a productive employee. Any business that treats its employees well has positioned itself for advancement. One of the jobs of the HRM team is to make sure the employees are always satisfied with their lot. They can accomplish this through well planned online surveys to get information about the employees and what they want. They can also provide incentives to motivate the employees while also overseeing the employees’ benefits and making sure they are properly rewarded.

Employee Conflict Resolution: With the diversity of personality, religion, background, and work style, conflict in a workplace is inevitable. This can affect team project between workers and delay the firm’s progress in more ways than one. A great HR department looks into the welfare of the employees and swiftly settles any dispute between them. This facilitates better employees’ communication and team spirit, which would, in turn, lead to better results.

Business Budget Control: A great HR department helps in reducing excessive company spending by carefully analyzing the state of the company and trimming out the reasons for unnecessary spending. This is achieved by setting employee wages based on the company’s revenue, employment trend, salary analysis based on employee’s function in the company, and curtailing unnecessary incentives.

In most cases, employers may not be able to interact and understand the welfare of the employees but the human resources department must be there to facilitate better communication and oversee the welfare of the employees. All of these directly contribute to the overall growth of the business.