No nation attains sustainable economic growth without developing the human resources necessary to drive such growth. In fact, the development and utilisation of human capital are pivotal to economic productivity and growth.
Human resource management (HRM) is the process of employing people, training them, compensating them, developing policies relating to them, and developing strategies to retain them. As a field, HRM has undergone many changes over the last twenty years, giving it an even more important role in today’s organizations. In the past, HRM meant processing payroll, sending birthday gifts to employees, arranging company outings, and making sure forms were filled out correctly, in other words, more of an administrative role rather than a strategic role crucial to the success of the organisation.
Meanwhile, business leaders across functional areas and a wide range of industries can agree that their organization’s success will be determined by attracting, retaining and optimally managing a quality workforce. But although working on these human capital success factors is now an essential part of every business leader’s role, for human resource management professionals it is their role.
Objectives of HR includes hiring the best talent for the company. Recruiting is actually a very complex process and many companies lose money due to inefficient recruiting. The HR team is responsible for recruiting qualified candidates and filling up positions with top talent as quickly as possible. Even though this is not emphasised, HR leaders often try to find the right fit for the job so that employees will be happier and more invested in the company’s success.
Speaking, an economist, Mr Tunde Oyediran, said HR is one of the most important aspects of any business, saying that “If you canot understand your employees, their needs and how they impact your business, your company will struggle to grow. One factor that makes companies great is the employees; HR is a department that ensures workers are happy, prepared, and ready to tackle challenges that come their way.
“Not every small business can build out an in-house HR department. There are steps small business owners can take, though, to create a workforce comprising happy, productive employees.”
Important Of HR To An Organisation
Human resources is important to organisations in myriad areas, ranging from strategic planning to company image.
Strategic Management
HR improves the company’s bottom line with its knowledge of how human capital affects organisational success. Leaders with expertise in HR strategic management participate in corporate decision-making that underlies current staffing assessments and projections for future workforce needs based on business demand.
Wages And Salaries
HR compensation specialists develop realistic compensation structures that set company wages competitive with other businesses in the area, in the same industry or companies competing for employees with similar skills. They conduct extensive wage and salary surveys to maintain compensation costs in line with the organisation’s current financial status and projected revenue.
Analysing Benefits
Benefits specialists can reduce the company’s costs associated with turnover, attrition and hiring replacement workers. They are important to the organisation because they have the skills and expertise necessary to negotiate group benefit packages for employees, within the organisation’s budget and consistent with economic conditions. They also are familiar with employee benefits most likely to attract and retain workers. This can reduce the company’s costs associated with turnover, attrition and hiring replacement workers.
Safety And Risk Management
Employers have an obligation to provide safe working conditions.
Minimizing Liability Issues
HR employee relations specialists minimise the organisation’s exposure and liability related to allegations of unfair employment practices.
Training And Development
HR training and development specialists coordinate new employee orientation, an essential step in forging a strong employer-employee relationship.
Employee Satisfaction
Employee relations specialists in HR help the organisation achieve high performance, morale and satisfaction levels throughout the workforce, by creating ways to strengthen the employer-employee relationship.
Recruitment And Onboarding
HR recruiters manage the employment process from screening resumes to scheduling interviews to processing new employees. Typically, they determine the most effective methods for recruiting applicants, including assessing which applicant tracking systems are best suited for the organisation’s needs.
Hiring Processes
HR professionals work closely with hiring managers to effect good hiring decisions, according to the organisation’s workforce needs. They provide guidance to managers who are not familiar with HR or standard hiring processes to ensure that the company extends offers to suitable candidates.
Overall, a company is only as good as its people and the HR team is in charge of building and maintaining a strong team. A good human resource team with the right resources will help your company get the most out of your employees. If you have not yet recognised the importance of your HR team in your company, make that a priority now.
