How important is Human Resource

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Human resource is one of the the most important divisions in a company. Being able to hone talent and decide workflow is imperative to any company. There are many reasons a human resource division in a company is considered important. Here are a few!

 

BUDGET CONTROL –

Human resources curbs excessive spending through developing methods for trimming workforce management costs, which includes negotiating better rates for benefits such as health care coverage. In addition, human resources ensures competitive and realistic wage-setting based on studying the labor market, employment trends and salary analysis based on job functions. As some small businesses have budget constraints, this human resources function is especially helpful.

SOLVING CONFLICTS –

Workplace conflict is inevitable, given the diversity of personalities, work styles, backgrounds and levels of experience among employees. A human resources manager or a staff person specially trained to handle employee relations matters can identify and resolve conflict between two employees or a manager and employee and restore positive working relationships.

EMPLOYEE DEVELOPMENT –

Human resources conducts needs assessments for the organization’s current workforce to determine the type of skills training and employee development necessary for improving skills and qualifications. Companies in the beginning or growth phases can benefit from identifying training needs for existing staff. It’s much less expensive than the cost to hire additional staff or more qualified candidates. In addition, it’s a strategy that also can reduce turnover and improve employee retention.

EMPLOYEE SATISFACTION –

Human resources specialists usually are charged with the responsibility of determining the level of employee satisfaction — often an ambiguous measurement at best. With carefully designed employee surveys, focus groups and an exit interview strategy, human resources determines what underlies employee dissatisfaction and addresses those issues to motivate employees.

SAVING MONEY-

The cost to hire new or replacement workers, including training and ramp-up time, can be exorbitant for employers, especially small businesses. With a well-constructed recruitment and selection process, the human resources function can minimize expenses regarding advertising job postings, training new employees and enrolling new employees in benefits plans.

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