Human resource is one of the toughest factors of production! Managing human capital is a multifaceted task. Hiring a team of professionals doing this work for you will make it much simpler.
Nothing a company does is more important than hiring and developing the workforce. Investment is made in people and not in an idea.
However, many a time we have noticed people underestimate the HR team. Well, this is not true!
They are the driving force of the company, they have many hidden benefits that they bring to the organisation.
As per a recent study by IDC, 80% of the business managers believe that HR plays a key role in the transformation of the company.
Recruiting is not the only task that the HR team performs, managing human resource includes multiple different tasks where every unit (Individual) of a resource is different and has to be tackled considering the current circumstances.
Let us understand what are the other hidden benefits that the business get from the HR team.
- Coordination
Streamlining your organisation is the HR’s responsibility. Helping the two different departments working at the same time with their communication and collaboration.
While all the departments work to achieve their own targets they all are pointed towards a single organisational goal.
To make sure these targets eventually reach a goal in peaceful way is the human resource professional’s task.
- Attrition rate
Attrition rate of every organisation has to be kept to the bare minimum, and to do so a team of professionals is required. HR team by putting in constant efforts and arranging different activities like motivational sessions, picnics and other tasks reduce the attribution rate.
If the employees keep leaving the organisation it adds cost to the company.
As per HBR org, if the employees are denied a raise 57% of they plan to leave. However with right tactics HR can control and lower their attrition rate.
- Employee development
Technology is changing rapidly, it is the HR’s duty to upgrade the employees as well.
Even the most educated and highly skilled employees in an organisation need constant attention. Training and development is a recurring activity for every business.
The HR team is in charge of the ongoing development of the employees, keeping their skill set up to date as per the current demands.
- Maintain compliances
Every business has to follow certain government compliances. There are large number of rules and regulations that have to be followed in personnel resource management.
Without the HR team it would be very difficult for the organisation to keep themselves intact with these compliances. And if not maintained properly, they will be fined with huge charges and this could even hurt their corporate image and risk goodwill.
- Relieving burden
When a business grows, with every new step it faces new difficulties. Hiring a separate team for reducing the burden in hiring, training and development of the labor force of the company would be the best.
Businesses cannot directly spend their time in this activity as it is time consuming and requires a lot of attention.
However, if businesses have a separate HR team they could focus on much other bigger picture and attain their end goals.
- Complaint box
If any employee has any complaint, they can also reach out to the HR. HR team works to give redressal to the employees.
Other than this even if there is a conflict, HR resolves the conflicts between all the employees at different levels.
This helps to maintain peace in the business and focus clear on attainment of end goals and other annual targets.
- Works like a care taker
The employer has to take care of the working conditions, it has to be as per government’s regulations.
In the 1970’s it was solely the employer’s responsibility however, with N no of regulations to be followed HR team took an effective role in this area.
HR here works as a business’s care taker as it communicates the businesses commitment to provide health and safety environment and strategic management.
- Employee satisfaction
HR team are in charged with the accountability of the employee satisfaction. They have to make sure that the employees not only work for the organisational goals but also for their own goals and targets.
Employee if not satisfied are not as efficient as they ideally should be.
Conducting activities like focus groups and exit interviews and one on one discussions they can understand employee’s expectation from the job.
- Budget control
The HR team also helps to reduce the capital cost of the labour, they constantly study the markets and to ensure realistic and competitive wage rates. They make sure that the employee gets the remunerations as per industry standards. HR team tries to create a win-win situation for both the employer and the employee. As start-ups and small business organisation has business constraints HR will be an effective way to manage it.
- Sustain Business growth
Now however, HR is not working in any sales team or marketing, they are also secretly contributing to the business’s growth. As human resource is the driving force of business and they come under HR team. HR team conducts succession planning and to deliver the promises and accomplish the goals of the company.
Final words
Other than payroll, hire and performance management, there are many other functions that an HR does.
HR team is very important, gone are the days where they only do cliché roles in an organisation.
Having an HR team in house is very important, however many small businesses and start-ups go for outsourcing human resource services.
If organisations and businesses are planning to increase their workforce or business goals then they surely must consider having an in house team of HR.
To win the marketplace, you must first win the workplace.”
-Doug Conant
