5 Reasons Why Your HR Department is Vital to Your Business


Although increasing numbers of business functions are being automated, the human touch is still essential in keeping things running smoothly. While technology can be incredibly smart, it can’t yet match the agility of the human brain and it doesn’t always know how to deal with your clients. However, we sometimes need to be reminded of the importance of human resources management for the smooth running and continuity of our businesses.

5 Reasons Why Your HR Department is Vital to Your Business

1. HR Management Ensures Legal Compliance

Just as technology comes with a set of rules for its use, so the law lays down a slew of regulations that we must follow when working with people. Failing to comply leaves us open to legal action that can be extremely costly and even fatal to a business’s survival. Most of us are aware that HR shoulders the tasks that keep us on the right side of employment laws and regulations, but there’s much more to HR’s strategic importance.

2. HR Works to Recruit and Retain Talent

Every business hopes to recruit bright, motivated, and skilled staff – and finding the right people is only the start. Recruitment and training are costly processes, so having found the right people to fill posts, it’s up to HR management to create an environment in which they’ll want to remain. It’s not just about salaries and insurance – it’s also about offering meaningful work and opportunities for advancement.

3. HR Management is Vital to Succession Management

Do you have key staff who cannot be replaced? That leaves you in a vulnerable position. If your key staff members were to resign, become ill, or even die, who will take their places? In succession planning, HR managers identify promising candidates to train, develop, and nurture with the aim of achieving smooth transitions if important staff members or managers were to leave.

4. Performance Management Builds Efficiency

The efficiency of your team is equivalent to the efficiency of your business. Most people want to do well in the workplace, but some need training and guidance in order to deliver their best. Sometimes, underperformance isn’t the employee’s fault. They may lack resources or be working within a flawed workflow. Whether it’s a need for skills, motivation, or changes to the way your business works, performance management processes initiated by HR managers often picks up the problems that other departments missed or just accepted as the status quo.

5. HR Management Works to Uphold Your Business’s Values

Every business has its own “personality” and set of values that contribute to its vision and mission. Putting your money where your mouth is means ensuring that every member of staff knows what these values are and upholds them in the workplace to create the culture you want in your organisation.

HR Management Works to Build the Team You Need

There’s a lot more to HR management than paper-trails and admin. The people you employ, how they work, and how they engage with your business are key to realising your goals. Automating the admin is actually quite easy, but having a knowledgeable human resource management team is a crucial investment in your business’s success.


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