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Why is the Human Resources Department, or HR, so crucial for businessess?

The Human Resource Department (HRD) is the organization's beating heart. The Human Resource Department is one of the most important divisions in a well-structured organisation. Its responsibilities include increasing employee performance, strengthening company rules, enhancing employee skills through training, establishing a system in the organisation, managing people, awarding incentives and privileges, planning, and implementing.


Human resources (HR) is a broad phrase that refers to how an organisation manages and develops its people. At the end of the day, it's all about improving employee performance.

HR has traditionally concentrated on hiring, firing, and the annual salary review. However, HR has recently been reframed in a positive light and now encompasses a much broader scope.


Within an organisational framework, human resources (HR) specialists perform a wide range of activities. A quick examination of the key functions of human resource departments will help frame the more common activities that a human resource professional may engage in. The following are the core functions:

Core functions of HR include:

  • Staffing / Recruitment

  • Development

  • Managing Payroll & Compliances

  • Compensation / Employee benefits

  • Health & Safety

  • Training and development

  • Industrial Relations

HR also plays a key role in fostering a positive corporate culture and increasing employee engagement and productivity. Employee wellbeing and personal development are also handled by the HR department.


In a small business, it's easy to forget about HR. Many entrepreneurs get their enterprises off to a great start, but as the company grows, they run into problems with people management.

Managing employees takes effort and requires specialised knowledge. Many business owners are lacking in the area of human resources.

The significance of human resources in company, regardless of abilities, isn't always obvious. When it comes to the people they hire and manage, business executives believe they have their finger on the pulse with just a few employees.


Recruiting new full-time or part-time employees, hiring contractors, and ending employee contracts are all examples of this.

The following are examples of staffing activities:

  • Identifying and addressing talent shortages (through recruitment, primarily)

  • Using a variety of recruitment technologies to attract a large number of applications (and to filter based on experience)

  • Contract termination when necessary

  • Keeping ethical recruiting processes in place and adhering to statutory requirements

  • Negotiating salaries and perks with employees and writing employee contracts.


HR is responsible for maintaining a developmental approach to existing human resources, which includes on boarding new employees and providing resources for continuous development.

The following are some examples of development projects:

  • New employee on boarding and training

  • Providing options for employees to receive training (internal training, educational programmes, conferences, and so forth) to stay current in their industries.

  • Getting employees and managers ready for management opportunities and offering feedback


Human resource management encompasses salary and benefits as well. This includes determining suitable pay based on job duties, performance, and regulatory requirements.

The following activities are part of the compensation programme:

  • Using benchmarks such as industry norms for a specific job function, set compensation amounts to reflect the market.

  • Working with third-party suppliers to negotiate group health insurance rates, retirement programmes, and other benefits

  • Talking to employees about raises and other compensation increases and/or cutbacks.

  • When it comes to employee compensation, ensuring that all legal and cultural requirements are met.


In order to achieve best practises in many businesses, employees' safety and health must be carefully considered.

The following are some examples of safety and health activities:

  • Assuring compliance with legislative requirements for safety measures based on job function (i.e. hard hats in construction, available counselling for law enforcement, appropriate safety equipment for chemists, etc.)

  • When laws in a particular industry change, new safety measures must be implemented.

  • Consult with relevant government departments on safety and compliance.

  • Meeting with unions to discuss safety and compliance.


Another core HR responsibility includes defending employee rights, cooperating with unions, and mediating conflicts between the corporation and its human resources.

The following are examples of employee and labour relations activities:

  • Resolving conflicts between employees and employer

  • Employee-to-employee conflicts are resolved through mediation.

  • When it comes to charges of harassment and other forms of workplace abuse,

  • Employee rights are being discussed with unions, management, and other parties.

  • When it comes to broader organisational concerns including employee welfare, acting as the voice of the organisation and/or the voice of the employees is essential.

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