Why Is Human Resources Important? (2024)

Why Is Human Resources Important?

A lot goes into running a successful small business. Along with a good idea and a quality product, you need a great team behind the business, making the operation run smoothly and taking care of the day-to-day work. An important part of that team is the human resources department.

Why, you might wonder, does HR hold such a pivotal role? Imagine HR as the backbone of your business's body, supporting and nurturing the team to ensure peak performance. They are the cultivators of a thriving ecosystem where employees don't just work but flourish, feeling genuinely appreciated and driven to contribute their best.

What Does HR Do?

The human resource department, or HR, plays an important role in any business, including small businesses. The primary role for Human resources is to improve employee performance, which makes the overall company function better and achieve more. Essentially, HR acts as a bridge between the workforce and the company's objectives, ensuring that both the employees' and the organization's needs are met effectively. HR services include anything related to managing and developing employees within the organization.

Basic roles of HR include:

• Recruitment and hiring
• Onboarding
• Training and development
• Employee benefits and vacation management
• Payroll
• Employment law compliance
• Safety
• Improving employee engagement and productivity
• Shaping company culture

HR professionals are trained to work well with people, to resolve conflicts, and promote a safe and productive workplace culture.

Why Is Human Resources Important?

A scrappy, growing business might want to put all of its limited resources into marketing and development. Human resources isn’t directly related to the work of the business, the argument might go—it doesn’t create products, develop software, or serve customers.

While this is true, HR is still key to the productivity of any business, including those that are small or growing. Why is human resources so important? Here are four key reasons:

1. Management

Human resources professionals are expert managers. They work well with people and understand what motivates them to put in their best work. Entrepreneurs, CEOs, and VPs are experts in building a business and leading in strategy, but they may not have experience or expertise in managing people. The HR team takes the responsibilities of training, development, compliance, and employee productivity off the hands of the leadership team, allowing them to focus on what they do best.

2. Talent

A company is only as good as its talent, or the employees who make it run. A key role of HR is talent recruitment, training, and retention. The human resources team can help a small business fill a crucial role with the right person. They can spend the time to craft the right incentive and benefits packages to make the company appealing and competitive. And they can work to create a workplace culture that encourages employees to do their best and to stay around for years to come.

3. Productivity and Motivation

Even after your business has hired great talent, the employees need to stay engaged and motivated. HR makes sure employees feel supported, satisfied, and motivated, so they put in their best work every day and become productive. Productive employees can help your business meet its quarterly goals and continue to grow and produce great products.

4. Safety and Compliance

Federal and state laws governing employment and employee safety can be complex. HR managers understand these laws and make sure to keep the company in compliance, both to avoid fees and penalties and to create a workplace environment where everyone can feel safe and valued. Suppose there is some physical danger to the work, including operating machinery or working with hazardous chemicals. In that case, the HR department makes sure employees have a safe working environment and takes steps to reduce injuries and other problems.

How HR technology can help

In this era where every second counts, tools like Eddy make a huge difference—saving time, money, and offering peace-of-mind. Eddy helps companies focus on what they do best—building a stronger, more cohesive team geared towards smashing those business goals.

Hiring and onboarding in Eddy is a seamless and inviting experience. Eddy automates the mundane, from sorting resumes, automating communication, and removing paperwork, ensuring you start off on the right foot with your new hires. This efficiency not only saves precious time but sets a professional tone, making your business an attractive place to work.

Staying compliant is a necessity that can often feel like a hurdle for new businesses. Eddy stores your sensitive employee information securely online, making compliance simple by letting you create, sign and store documents in a secure digital platform. Eddy centralizes documentation for each employee, from I-9s to non-competes, and eliminates multiple subscription fees and scattered information while integrating file management into an all-in-on HR+Payroll solution.

Make HR More Efficient With Eddy

HR software can make your human resources team more effective in their important role in your company. Streamline your HR processes to keep your company growing with Eddy. Learn more about Eddy services and pricing.