Why Your Business Should Pay Attention to Human Resources

Human Resources is an important component of any thriving business. This field has received a more prominent seat at the table in recent years as employee engagement has become a hot topic for many organizations. In fact, a recent study found that 70 percent of employees are not engaged at work. In addition, 90 percent of leaders think an engagement strategy would boost business success. But only 25 percent have an actual strategy in place. With all this data, human resources has evolved and becomes a more strategic partner. It is also a piece of the puzzle that most organizations simply can’t overlook.

In this article you’ll learn more about the function of human resources, who generally uses its specific functions. You will also see how an HR department can help your organization. You’ll be prepared to tackle your organization’s biggest people challenges. Also, you’ll enjoy the many benefits of an effective HR department.

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What are Human Resources?

Human Resources are a company’s human assets. More specifically, their employees. The Human Resources Department typically focuses on employment related issues. This ranges from the actual hiring process, training and development, performance management, and administration of compensation and benefits.

This department generally oversees the flow of employment from an employee’s first day until their termination or resignation. They’ll also be familiar with labor laws and ensuring employees feel safe and comfortable at work.

Who Uses Human Resources?

Most companies have some source of HR administration or counsel.

  • Large companies might have a fully staffed department with individuals diving deeper into certain areas of HR. For example, a larger company may have a Director. Then, individual managers overseeing areas like learning and development, employee relations, and compensation and benefits.
  • Small companies may have one person handling HR in addition to other duties. They also may outsource their HR work to a third party consultant. Either way, most companies understand the importance of HR in accomplishing organizational goals.

How Does HR Benefit the Company?

The Human Resources area┬áhas a wealth of benefits and positive implications. Without HR, no one would be focusing on the organization’s most valuable asset. This comprises of the employees. Here are a few benefits you’ll earn when employing an HR team.

1. Legal Protection

Human Resources professionals often receive training and information on the most current labor laws. If nothing else, having an HR team ensures your company is following government guidelines. So you’ll feel more protected with this security in place.

2. Improved Talent Pool

Human Resources generally handles the recruitment process for new employees. Instead of pushing this burden on managers, your HR team will be well-versed in hiring practices and strategies. They’ll know how to negotiate salaries and sell the organization.

They will attract some of the best candidates in the business. Attracting quality candidates is the first step in meeting your organizational goals. It also leads to creating a positive work experience for your team.

3. Increased Employee Engagement

The Human Resources field also trends towards managing employee engagement and morale. HR leaders are generally knowledgeable about what motivates employees. They are always looking for ways to increase camaraderie, teamwork and the overall work environment.

Attention in this area has a huge impact on your employee’s satisfaction at work. It influences their overall productivity. You’ll reap the benefits of a happy workforce and may even see it reflected in your bottom line.

4. Unbiased Perspective

The HR team is also tasked with handling employee disputes. This is a benefit because HR provides an unbiased look at the situation. HR can resolve disputes more subjectively than someone who is untrained in this area. Engaging HR maintains the fairness of the situation and keeps the reputation of the company.

5. Improved Confidentiality

Managing employees requires the upkeep and tracking of a lot of highly confidential information. This information can include salary, health information, social security numbers and banking info. If not properly stored or protected, release of this information could cause a lot of headaches for your staff. Enlisting the help of a dedicated HR team ensures this information is kept secure and confidential. This step improves morale and your staff’s trust in the company.

6. Performance Metrics

HR teams are also adept at designing and tracking performance metrics. They can work closely with teams to set benchmarks. They also assess any training needs and provide the required support to make sure performance continues to improve. This is definitely a benefit to your company. This is why you may want to continually monitor progress and improve with each day.

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3 Essential Tips for an Efficient Human Resources Strategy

Designing and delivering a human resources strategy is more than just providing free lunches and offering coffee in the break room. It takes a lot of planning and analysis. Here are a few tips for implementing your company’s HR strategy.

1. Assess Current Performance/Create Development Plans

In order to plan for the future, you have to evaluate what’s current. Start with an informal performance review to assess the skills and knowledge of your current staff. This will give you some direction for future training.

Once you’ve identified what skills are lacking, the next step comes along. Now you can work closely with management to draft development plans for your employees. These plans should identify training and education required to perform on the job.

2. Develop Succession Plans

As an HR manager, you have to be prepared for the unexpected. You may get everyone trained and then receive a surprise resignation or be required to terminate an employee. You’ll need to be planning ahead. Also, prepare your people for succession so you can quickly adjust to any losses.

3. Conduct a Gap Analysis

A gap analysis helps your company identify current resources and policies. It can also help you determine where gaps are. You’ll want to evaluate your employee handbook, job descriptions and role definitions, organizational chart, benefits, time off policies, and training options.

It might help to compare your policies and resources to those of a similarly sized and funded organization. This will help you understand your competitiveness in the market and will help you move forward.

Studying the Resources

As you can see, human resources plays a critical role in the success of your business. Successful organizations pay attention to their people. They also dedicate resources to ensuring they have the everything they need. This includes training, knowledge, and support to perform at their highest level.

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