Why having an HR department is important

While it is not always practicable to employ someone to manage your human relations when you are a small business, it does become important to consider incorporating an HR department at some point as your business grows.

Why is having an HR department important?

Business is a human activity (obviously), which is why the exchange of goods or services revolves completely around human relations. To deny the importance of human relationships in business is to strip your business of its very foundations.

What are the largest reasons for having an HR department?

  1. Conflict resolution

Conflict is an unavoidable and important part of business. Conflict is often exactly where solutions for your business can be found, but defining conflict can be harder than it seems. There can be conflict of ideas that is conducive to innovative thought, but this conflict of ideas can easily transform into conflict of personalities. An HR department acts as a mediator within the business to direct conflicts in the right direction, creating opportunities for growth and innovation.

  1. Training

An HR department can be a valuable asset when it comes to introducing new employees into your business (as part of your growth as a business) and finding new training opportunities for existing staff, which ensures they feel their career is developing within your business.

  1. Managing workplace morale

An HR department plays a pivotal role in researching and implementing employee benefits programs and finding solutions to keep your staff motivated. Motivation within a workplace is often linked to the collective morale of a business. An HR department can provide an outsider’s perspective on factors that are impacting workplace morale and devise solutions to improve on this.

  1. Finding new opportunities

HR departments, or even a single HR employee, can be an effective recruitment tool. Recruitment is key to a business’ ability to grow. Not only does HR find the right fit for existing jobs, but it also keeps its eyes open and tabs on potential employees with particular skills that could be employed in the future to expand the products or services offered by your business.

Finally, having an HR department is seen as a fundamental part of a business that values growth and the development and nurturing of its employees. While smaller businesses will be forgiven for not having the resources to engage an HR professional, a business that shows signs of growth will limit its growth by ignoring this fundamental arm.




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