The Importance of Human Resources (HR) Explained

Human Resources (HR) facilitate employee engagement and productivity. They play an important role in the creation of a positive corporate culture. Most of us associate HR with hiring and onboarding, training, and performance management. in this post, we’re going to be looking at HR and why it’s important to any organization:

What Exactly Is Human Resources (HR)?

It is a collective term used to describe the management and development of employees in a company. The key role of an HR department in a company is to increase staff performance for the success of a business.

Previously, HR used to be primarily concerned with hiring, firing, and the conventional yearly salary review. In recent years, though, HR has been favourably reframed and has expanded in scope. Today, the duties of HR include:

Basic HR duties consist of:

  • Recruitment
  • Onboarding
  • Training and development
  • Leave management
  • Payroll management
  • Employee benefits
  • Compliance with the employment laws
  • Safety compliance

Additionally, HR is crucial in fostering a healthy corporate culture and raising productivity and employee engagement. It also monitors organizational standards to safeguard the personal growth and wellness of employees in an organization.

How Important Are Human Resources (HR)?

Extremely. Most SMEs overlook HR. But after launching their business and succeeding, they realize that they can only go so far without HR. Why? Because HR is the interface between a business and its employees.

HR helps business owners with people management. Granted, managing people is no easy feat. People come from different backgrounds and have different views of life, cultural differences, and so on. It can therefore be tough to manage employees, which is why as a business owner, you need an expert empowered with the capacity to do so,

Naturally, business owners sometimes feel like HR is unnecessary, thinking they are doing fine without HR. After all, they’re pretty good at hiring and managing their staff. However, as the business flourishes and more people come on board, it becomes a challenge. In such a situation, HR becomes a necessity.

Even though the benefits of HR in business aren’t usually obvious right away, time proves entrepreneurs wrong. They frequently realise that they just don’t have the time to deal with daily personnel management and hiring. The attention to the needs of employees can therefore be lost, an expensive error that may have an impact on culture, long-term success, and employee satisfaction.

Think about the effects of inadequate HR. Employees lack attention to their needs. Their opportunities are undermined, and they don’t feel supported. They could also be overworked without anyone to represent them. Ultimately, this lead to a negative attitude and employees’ motivation takes a dip. Long story short, if you fall short on effective HR, it will have an impact on your bottom line.

Your company, its employees and its culture are interdependent. A good company will have motivated employees and a positive culture. The converse is also true. Besides that, your business’s reputation could be damaged, yet it determines the kind of talent you attract. Customers are also directly affected when employees fail to deliver.

Consider Uber as an example, the brand has been ruined by poor HR. Dogged by several HR missteps, including sexual harassment lawsuits and dismissing employee concerns, the negative publicity discouraged people from working there or using their riding services!

HR’s Significance in a Pandemic

The coronavirus pandemic has made us rethink how we conduct business and the HR department has taken the lead in this. The choices businesses make and the way they treat their employees are becoming more and more important performance indicators.

More than that, businesses throughout the UK are now being forced to put human resources at the centre of their operations. That’s because, in a pandemic, the issues affecting employees are all too real. Continuous economic instability, remote working, and an all-too-real impact on employees’ mental health.

HR is therefore essential to the efficient operation of a company during a pandemic or other significant event. They help assist managers with remote management and delicately express the repercussions of a decline in business.

What Are the Primary Responsibilities of Human Resources in Business?


It can be challenging to find the right people to work for your company. The hiring process might take months and can be expensive if done incorrectly. One of the key facets of HR is finding a good fit when it comes to hiring talent.


Perhaps the most overlooked aspect of the hiring process is how important onboarding is. Onboarding, should not be confused with orientation. It refers to the entire process of recruitment for HR, welcoming, orientation, and engaging new hires while also assisting them in assimilating into your organization’s culture.

With effective onboarding, employee engagement is maximized, maximizing retention. Poor onboarding, on the other hand, can have a significant negative effect and disconnect skilled new employees right away.

Wind Up

With that, you now know why your business needs an HR department. It’s not an option, it’s a necessity. Feel free to reach out if you have any queries!

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