For small businesses and large organizations alike, the human resources function can be helpful for much more than simply processing payroll or handling the open enrollment season once a year. Human resources play a vital role in developing a company’s strategy as well as handling the employee-centered activities of an organization.
What are the benefits of having Human Resources?
Highlights and reduce potential risks
You are able to focus on your core business
Align your business plan with company’s vision
Manage conflict Resolution
Increased employee satisfaction
Reduce employee turnover
Improved Business Image
Increased cost savings
The cost to hire new or replacement workers, including training and ramp-up time, can be overwhelming for employers, especially small businesses. With having a solid recruitment and selection process in place, the human resources function can minimize expenses regarding advertising job postings, interviewing, training new employees and benefits enrolment.
Every business investment carries a certain amount of risk. Markets, competition, government regulations, financial conditions, and technologies all change very quickly. By partnering with your Human Resources they can manage this risk for you, and are generally much better at deciding how to avoid risk in their areas of expertise.
If your employees are paid according to market value with good salaries, wages, bonuses and other fringed benefits this motivation drives an employee to work harder and diligently, and for the longevity the companies’ output increases and so does productivity.
Succession planning is having a systematic process in place through human resources, where managers identify, assess and develop their staff to ensure they are ready to assume key positions within the company. If this initiative is carried out it can secure the organizations stability and future success, whereby putting them one step ahead of their competitors.