Human resource function is very important and a key function to the organizations for achieving excellence in business activities, ranging from strategic planning to company image. HR practitioners in a any business who have well-rounded expertise provide a number of services to employees. The areas in which HR maintains control can enhance an employees’ experience throughout the employment irrespective of levels and grade of the employees while strengthening business operations.
To simply understand the importance of HR function in any organization, let’s review below facts:
1. Strategic Management
Strategic management provides overall direction by developing plans and policies designed to achieve objectives and then allocating resources to implement the plans. Ultimately, strategic management is for organizations to gain a competitive edge over their competitors.
HR improves the company’s bottom line with its knowledge of how human capital affects organizational 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.
2. Analyzing Benefits
HR Comp & Ben specialists can reduce the company’s costs associated with turnover, attrition and hiring replacement. They are important to the organization because they have the skills and expertise necessary to negotiate group benefit packages for employees, within the organization’s budget and consistent with economic conditions. They also are familiar with employee benefits most likely to attract and retain employees. This reduces the company’s costs associated with turnover, attrition and hiring the replacement.
Reviewing headcount, labor cost to sales, labor cost to revenue, value proposition per employee, employee mix, diversity & inclusion, age of the employees, percent availability of critical skills are the common parameters being assessed while measuring effectiveness of any organization.
3. Minimizing Liability Issues
HR employee relations specialists minimize the organization’s exposure and liability related to allegations of unfair employment practices. They identify, investigate and resolve workplace issues that, left unattended, could spiral out of control and embroil the organization in legal matters pertaining to various social security, labor, business and harassment laws.
4. Safety and Risk Management
Employers have an obligation to provide safe working conditions. Workplace safety and risk management specialists from the HR area manage compliance with national/state Safety and Health Administration regulations through maintaining accurate work logs and records, and developing programs that reduce the number of workplace injuries and fatalities. Workplace safety specialists also engage employees in promoting awareness and safe handling of dangerous equipment and hazardous chemicals.
5. 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 organization’s needs. HR ensures the availability of right talent at right time at right place.
6. Hiring Processes
Wherever requires HR professionals work closely with hiring managers / line managers to effect good hiring decisions, according to the organization’s workforce needs. They provide guidance, various tools and techniques to managers who aren’t familiar with HR or standard hiring processes to ensure that the company extends offers to suitable candidates.
7. Wages and Salaries
HR comp & ben 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 organization’s current financial status and projected revenue.
8. Training and Development
HR training and development specialists coordinate new employee orientation, an essential step in forging a strong employer-employee relationship. The training and development area of HR also provides training that supports the company’s fair employment practices and employee development to prepare aspiring leaders for supervisory and management roles.
9. Employee Satisfaction
Employee relations specialists in HR help the organization achieve high performance, morale and satisfaction levels throughout the workforce, by creating ways to strengthen the employer-employee relationship. They administer employee opinion surveys, conduct focus groups and seek employee input regarding job satisfaction and ways the employer can sustain good working relationships.
10. Maintaining Compliance
HR ensures that the organization complies with central as well as state employment laws. They complete paperwork necessary for documenting that the company’s employees are eligible to work. They also monitor compliance with applicable laws for organizations that are imposed or decided by the central as well as state authorities, through maintaining applicant records, registers, files and furnishing the details periodically to the authorities as per deadlines and guidelines.
By integrating HR strategy, business goals and company values into everything …. HR contributes every day, every moment to achieve the organizational goals and to making the business successful.
About the Author:
Mr. Rakesh Kumar is a seasoned professional having blended experience of working in Human Resource function with elite force “Indian Air Force” as well as with Automotive Industry which is considered as most mature industry. He holds Master of Business Administration in Human Resource, Diploma in Training & Development, having over 30 years of experience working with multinational and large industries such as NSK & Magna Powertrain etc. and currently heading the plant HR function of India Glycols Limited based out at mother and largest plant at Kashipur.