According to business experts, when a company reaches a certain size or level of organization, it is time to set up a human resources department.
When you’re starting a new business, you may assume you can handle all of your day-to-day challenges. Hiring, training, and managing your employees? Sure!
However, unexpected issues can arise or your own time can run thin as your business grows. It can start to feel like you’re juggling too many balls at once. You may even start dropping a few!
That’s where HR comes in. Read on to answer the question, “Why is human resources important?”
What Is a Human Resources Department?
There’s no one way to explain what HR does. Their duties and reach will depend on the company in question and what you need them to handle.
One thing that stays consistent is that HR acts as an unbiased go-between for employees and employers. They often help settle disputes between two or more parties within the company. They are trusted to maintain a level of integrity and consistency around the workplace.
That being said, some companies expand their HR department. Human resources can help with recruiting and training new employees. They are often involved in employment termination and other tasks that involve massive amounts of paperwork.
In other words, HR takes on several of the tasks that would be disruptive to you and other upper-management members of your team. They are not part of the main day-to-day operation, which frees up their time to focus on complicated matters.
Why Is Human Resources Important?
If you’ve never set up a human resources department, you may not understand just how much they can change your business. HR can improve your business from top to bottom, from new hires that are good fits to company policies that create a better workplace environment. Let’s take an in-depth look at HR’s important role.
Recruiting and Training
As your company continues to grow, it becomes more and more important that you recruit the right people. Ideally, you want a healthy mix of applicants that have experience in the field and applicants who could introduce something new to your workplace. HR has the time and knowledge of your company to find perfect candidates and seal the deal.
Once this is complete, HR can oversee training. They are responsible for communicating any rules and anti-discrimination policies. They also ensure that each new hire’s training needs have been met by a variety of people.
Employee Engagement and Satisfaction
Part of why it’s ideal to put HR in charge of training is that they will continue to be a go-to for employees. Throughout the year, you may find that you want to boost morale or increase employee engagement. HR can find both effective and fun ways to implement team-building exercises.
HR is also like a sounding board for employees. Over the years, they pick up on the sources of frustration or discomfort around the office. With that information, they can find innovative solutions to increase employee satisfaction.
Legal compliance is becoming more and more important for companies nationwide. Strides have been made at the state level in regard to anti-discrimination laws in addition to federal anti-discrimination laws. Employees and employers must be increasingly more aware of their behavior at work.
Because the laws are evolving on a regular basis, it is important to have a department that can keep track of these changes. HR can ensure that your company stays compliant by training employees on new standards. They can also keep track of any workplace violations.
When these workplace violations occur, there should be consequences. Plus, these consequences must be consistent. In other words, everyone must be held to the same standards regardless of position.
Although HR is an internal workforce, they maintain third party status. This makes it easier for people to report violations to them. It also makes it easier for them to determine how to resolve the conflict and what consequences the perpetrator should face.
Workers’ Comp Case Management
As your company grows, it is imperative that you remain aware of your state’s workers’ compensation laws. Are you required to buy this insurance? Who in your business is covered?
Getting a workers’ compensation insurance package isn’t the end of the story. What are you going to do if someone becomes ill or injured on the job? Are you prepared to fill out all of the paperwork, contact your insurance agency, and keep the affected employee satisfied?
Fortunately, human resources is. Filing for workers’ comp isn’t an overnight process but HR can walk both you and the employee through it.
HR can also help to keep your workers’ comp premiums from skyrocketing after a filed claim. They do so by assessing the possible liabilities in your workplace and addressing them. This tends to involve a combination of employee training and risk mitigation.
Grow Your Business the Right Way
Why is human resources important? They can steer the company culture ship, ensure legal compliance, and field complaints. They handle complicated paperwork and set up quality training programs.
We like to say that once your company has reached the point of requiring workers’ compensation, it’s time to open up a human resources department. But first, where can you find workers’ compensation that fits your business and budget needs?
It’s important for us to provide transparency and assistance from the very beginning. That’s why we offer our fast and easy quote services! Fill out this form to request your free workers’ comp quote today.