In today’s competitive business world, one might wonder which department is crucial to the company’s growth, value, and longevity. There will be those who can guess the actual employees producing the service or product, perhaps those who are in an executive leadership role, etc. Would it surprise you to learn that HR, as an entire department, is one of the most basic integral elements of a successful business? Why is it so important?
The very name of this department should provide the first clue. While most managers might argue that producing the best service or product is the ultimate goal, a savvy business professional realizes that unhappy, overworked, or generally dissatisfied employees won’t get the company very far. So how does HR fit into corporate America? In an age where statistics and cost of goods sold are predominantly recorded on the balance sheet and income statement, a successful business executive can also point to these same source documents that will substantiate HR’s influence and credibility. .
One of the reasons HR is such an important part of the business function is because of the many areas of concentration that need to be addressed and managed every day. The HR professional is likely to work with many departments within the company on a regular basis, including senior management. The following is a brief synopsis of the scope of human resources in a company (depending, of course, on the size of the company).
Recruitment: HR is the first group of employees a new hire will meet. They are the first impression and are the group that determines if the candidate has the desired skill set for a designated job. They are also the department that will do everything possible to keep employees happy so they can retain their good employees and maintain a lucrative partnership with them.
Payroll: Hands down the most important focus of HR, some would say! Think about it, payroll affects our state, local and federal taxes, allows people to buy or rent a house, a car, pay bills, etc.
Benefits: One of the most important elements of employment for some people. Due to the large number of participants within the company, your human resources department can negotiate a very affordable health plan for all of your employees. Not to mention, if one becomes disabled, there are disability plans in place to compensate while these employees are out of work, either temporarily or permanently. There is also the extension of benefits after termination of employment, more commonly known as COBRA. Have you ever been injured at work? Another benefit is Workers’ Compensation. This benefit allows the employee to seek medical help/treatment free of charge, since medical bills are paid by the employer.
Employee Relations: Have you ever had a problem with a coworker? Supervisor? The best place to address concerns or problems would be the human resources department. They can provide you with an unbiased opinion or action plan to follow in order to effectively address these issues.
Compensation – In order for the employer to pay employees the most competitive rate, it is up to the human resources department to keep abreast of the latest salary surveys and implement increases as necessary. Let’s be honest; No one would stay in a low-wage job if they felt they could be better compensated elsewhere. That’s just human nature.
Legal: While most companies may have a legal department, some do not. In those cases, Human Resources is responsible for making sure federal and state employment laws are followed and for intervening when there is a problem. This would also be true if there was suspicion of illegal activity on the part of the employer.
As you can see, Human Resources runs the gamut of responsibilities. Remember, behind every lucrative and successful business is a strong human resources team. They protect the true assets of the company.
