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The Importance of an HR Department

Big corporations that have been operating for decades need a Human Resources (HR) Department just as much as small companies that have been in business for a few years. The company’s functioning and development strategy lie in the hands of HR overseeing the employee relationships, leading the recruitment season and implementation strategies, and processing of payrolls. These are the other areas in which HR specialises and provides insight and relief:
• Budget control
• Employee training and development
• Conflict resolution and employee satisfaction
• Business sustenance and corporate image

Budget control
When the season for laying out the company budget and expenditure plan, the HR Department offers insight on what care expenditure must be implemented into the budget. This covers the health care and other benefits that the employees are awarded as part of their remuneration package. Additionally, HR is well informed about market-related salary brackets and the labour market for each business department, and they are able to advise how much goes into each job function. Because of their ability to assess employment trends, they are also able to foresee if the company will need to recruit to keep up with these trends.

Employee training and development
HR oversees the recruitment of each employee and therefore, they have first-hand knowledge of what each new recruit brings to the organisation. In the case of a department requiring training, HR assesses the current skills the workforce has and determines the training necessary for improving on these. Well-established companies need guidance in being developed to keep abreast of evolving trends, and new businesses need guidance in identifying training for new recruits.

Conflict resolution and employee satisfaction
The difference in each employee’s background, ideas and method of working is bound to allow conflict to arise. If not handled in a manner that favours those in conflict, staff retention will be weak as a result of employees being dissatisfied. A human resources manager is specially trained to handle workplace conflict and employee relations. The Department also sets up strategies and surveys to determine the level of current employee satisfaction.

Business sustenance and corporate image
Through their training and development strategies, and succession planning, HR is able to identify key employees who can be groomed for leadership roles that reflect the organisation’s corporate image. These identified employees ensure that company sustainability and success is achieved.

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