HR Department – Why Is It Important?

Today, it seems like nobody questions what HR means when they hear it. The abbreviation HR is characteristic of the business and corporate language. It’s easy to remember this short word originating from English. It’s very popular and widely used to refer to human resource management in companies worldwide. The popularity of this abbreviation is owed to its simplicity and clarity. What does the HR department do? Let’s delve into what HR is and what HR does.

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Table of content

From this article, you will learn:

  • what does the HR abbreviation mean?
  • what are human resources?
  • what is HR? what does HR do?
  • Is an HR department necessary in every company?

HR – What Is It?

The abbreviation HR stands for human resources management. The tasks performed by the HR department today were once handled by other departments in the company – such as the personnel department. The human resources department serves as a kind of liaison between the company’s management and its employees. However, the HR department does not influence the company’s business strategy. So, what does HR do? The tasks entrusted to the HR department encompass a broad range of responsibilities related to employee management within the company.

HR – What Does It Do?

Very often, what HR does is associated with recruiting new employees and handling documents. However, these are not the only tasks for which the HR department is responsible. What else does it do? The HR department is actually the heart of the company, shaping its organizational culture, developing employees, and managing relationships between employees and the company. Other departments in the company do not focus on employees as much as the HR department does. The HR department consists of versatile employees with high interpersonal skills. It is thanks to the employees of this department that internal communication within the company is successful, legal matters are meticulously handled, and employees form a cohesive and motivated team.

Until recently, the personnel department was mainly responsible for conducting the recruitment process. What is HR now? The structure of the HR department may depend on several factors: the size of the company, the industry, and its specificities.

Many of the company’s successes are often attributed to managers, executives, or salespeople. However, remember that without the employees of the HR department, there would be no talents prepared to work in the company. The success of the entire company relies on HR work. What does it involve? We have identified the most common HR areas:

  • Conducting the recruitment process to find the best-suited candidates for the organization’s requirements.
  • Onboarding new employees, which can take weeks. This is an important time. Properly introducing an employee to their duties will result in effectiveness and efficiency.
  • Employee evaluations: Employees need to know the evaluation criteria beforehand (what, when, and within what timeframe they should do). The results of such evaluations should be discussed with both management and the employee. Such an assessment also allows for planning an individual development path.
  • Training planning, which allows for talent management in the company. Training enhances the company’s prestige, motivates employees to act, and enhances their qualifications.
  • Creating a good atmosphere conducive to building positive relationships and avoiding conflict situations.
  • Employee motivation: This is an extremely important tool. It helps avoid employee turnover, builds trust, and enhances employees’ well-being. Praise is important, but it’s worth remembering that nothing motivates an employee like bonuses, recognition programs, or rewards for achievements.
  • Developing the organization’s culture: Why is this so important? Because every new employee enters the company with their baggage of experiences, feelings, values, priorities, interests, and the need arises to manage these differences.
  • Maintaining the company’s good image: This task is accomplished almost automatically if previous tasks are performed with dedication and diligence. For example, by providing feedback to a candidate who did not pass to the next stage of recruitment, the company demonstrates high personal culture, communicativeness, and good organization.

Does every company need an HR department?

You have a business idea, you’re just starting out, and you’re wondering if your company should have an HR department? Do you think that a professional service or product should also meet the standards regarding the organization of the company? The prevalence of this job position may suggest that every company should have an HR department. However, from our point of view, this is not obvious. There are several factors to consider when deciding to have an HR department. Consider your situation by analyzing the following aspects:

  • Company size: If your company consists of many employees, an HR organization seems justified. What the HR department does will help you develop in your industry, increase employment, and expand your business. You may also find that delegating tasks can be developmental for the company, and you won’t feel burdened with responsibility for many different tasks. However, if your company is small or just starting out, you can successfully fulfill the HR department’s function yourself or delegate it to a manager.
  • Organization-related requirements: If you care about shaping the organizational culture and engaging employees, you will certainly need an HR department to maintain a positive atmosphere in the workplace.
  • Need for professional talent management: If your company is focused on acquiring, developing, and retaining the best employees, you may find that an HR department is necessary to achieve these goals.

Remember that even if you don’t intend to create an HR department in your company, you can use the services of external HR specialists to meet your personnel needs. This solution is definitely less burdensome for the budget. The final decision to have an HR department depends on the individual situation of each company.

Hanna Korzeniowska
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