why human resources are important?
Answers
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Human Resource Management deals with issues related to compensation, performance management, organisation development, safety, wellness, benefits, employee motivation, training and others. HRM plays a strategic role in managing people and the workplace culture and environment.
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In the small business HR is easily overlooked. Many entrepreneurs get their businesses off to a flying start, but grapple with people management as the business starts to flourish. Managing staff takes time and it requires specific skills. HR is an area of expertise many business owners lack.
Regardless of skills, for many entrepreneurs, the value of HR in business isn’t always immediately apparent. With just a few employees, business leaders feel like they have their finger on the pulse when it comes to the people they hire and manage.
But as a business grows, leaders often find there just isn’t time to deal with day-to-day people management and recruitment and the focus on people can easily get lost. This is the costliest mistake a small business can make. Comprehensive HR is crucial for success. Without a talented team, your business falls down.
HR covers so much more than hiring, firing and pay reviews. It encompasses all aspects of people management, communication and is pivotal in building a positive culture. Get HR right and you are half way to making your business dreams a reality.
Consider the consequences of poor HR. When employees don’t feel supported, aren’t being given opportunities, work long hours, and so on, their motivation to perform is impacted. Under-deliver on effective HR and it has a knock-on effect on your bottom line.
Reputation as an employer is influential in attracting talent. It also impacts on customers. Take Uber as an example – plagued by a string of HR catastrophes from sexual harassment cases to ignoring employee complaints, the resulting bad publicity has undoubtedly deterred many from working there or from using their ridesharing services. Bad HR has destroyed Uber’s employer brand.