Critical HR Processes and How They Support Business Growth

Human resources are defined as the personnel of a business or organization, especially when regarded as a significant asset. The Human Resources (HR) department handles everything related to those employees. That means the HR department of any company is critical to the health and growth potential of that organization. It may seem like a non-critical department on the surface, but when you look at the major areas they handle, you will understand the importance of human resources in business.

Recruiting New Employees

One of the main functions of an HR department is recruiting employees. Most company growth will result in new/additional roles and responsibilities being created. Some of these may be covered by existing staff, but bringing in new employees is often necessary. The HR department is responsible for posting job opportunities in a variety of places, reading resumes, selecting potential candidates and interviewing and vetting those candidates, which may include checking references, coordinating background checks and scheduling drug testing. In this way, human resources processes are critical to the growth of any business.

Resolving Employee Complaints

No matter what the size of a company, there will be times when employees are feeling frustrated or dissatisfied. Making sure employees are gratified and happy is very important to the growth of a business, as it usually means less employee turnover. Handling these issues is all part of basic human resources processes. Issues can include disputes between employees, frustration with roles, responsibilities and salary, or other elements. Human resource professionals are trained to handle this type of conflict resolution.

Administering Benefits

The employee benefits offered by a company have a great impact on employee satisfaction and, therefore, on the growth potential of the firm. Without happy employees, a business cannot and will not be able to expand. The HR department is responsible for shopping for health insurance and negotiating good group rates. They also handle finding and administering workers compensation and disability coverage.

Ensuring Compliance

The HR department keeps track of all laws (federal and state) which affect compensation and benefits. In addition, they must ensure the business complies with any regulations set forth by the Equal Employment Opportunity Commission, which protect employees against employment discrimination of any kind.

Although it may seem like a minor or insignificant department, the importance of human resources in business cannot be denied. The department’s core activities help support the entire company and are a critical part of any growth or expansion.