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Reasons why the human resource department is important

Reasons why the human resource department is important

For every business, whether it’s small, large or a multi national, the human resources function is more that just making sure people get paid on time or new staff are hired. Human resources is a key player when it comes to helping a company’s strategy evolve with the times, it also help to motivate staff by organising activities that are centred around the employees. As businesses realise the importance of human resource management, they are now more willing that ever to sent heir employees out to study a Human resource management degree. It is essential for any company to have an effective and energetic Human resource department, so training these staff is not seen as a cost but a benefit. Here are some reasons why the human resource department is important.

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Controlling the budget

The human resource department is able to help manage a company’s budget effectively by reducing costs for managing the workforce, an example of this could be where they negotiate better rates for employees benefits such as health care. They also help to manage the budget for wages, they can help match a company’s salaries to the going market rate, making sure that the company stays competitive in the market. Small business are always watching their budget, so having an effective human resources management process is key.

Staff development

Training is a major part of any company and it allows a business to grow and be more successful. The human resources department is able to identify the skills and training that is needed by their employees. It is more cost effective for businesses to train their current employees than hire new staff. Through constant staff development a company can lower the turn over of staff and improve employee satisfaction.

Keeping the workforce satisfied

The human resource department is given the very important role of understanding the level of employee satisfaction, it is then their job to help improve it if needed. They gauge the level of satisfaction through a number of tools; surveys, focus groups and exit interviews. After using all of these tools they are able to sit down and assess what makes their employees dissatisfied and also what motivates the employees.

Resolving Conflict

Conflict is inevitable in any workplace, this is because the employees usually have different personalities, backgrounds, style of working and varying levels of experience. It is the role of the human resources department to resolve any conflicts that arise in the work place. Resolving conflict is key to maintain harmony and an effective workforce.