Human resources used to be a department that handled the hiring and letting go of employees, payroll, and making sure employees understood the rules outlined in the employee handbook. Changes in various employment laws meant that the human resource department had to evolve and take on a stronger role in the operation of an organization. So, why is human resources important to a company?

When taking a look at why human resource management is so important, it quickly becomes apparent that there’s a need for people who are capable of handling various duties that were once the purview of management. Functions that were once handled by management or a nominal human resources department became overwhelming and needed organization into one department for their handling. 

What are the Top Reasons Human Resources is Important?

The human resource department does a lot more than simply managing employees, their payroll, and their employment status. Now human resource representatives are responsible for finding candidates for employment, their hiring, bringing them on board, and supporting them throughout their employment with the company. There is a saying that human resources protect the company first, employees second, but the fact is that human resources have to find a balance in all things employment-related. The human resources department has to make sure that the rights of employees are protected at all times and ensure that the company stays in compliance with employment laws.

1. Recruitment

When you go to a job fair, chances are good that the people running the booth for a participating company are from human resources. The people from HR are the ones that are most familiar with the company and are the best at explaining what the company does. This helps a potential candidate learn about the company culture, what type of work they would do if they were hired, the benefits that are offered, and if they would be a good fit in the role they’re interested in. The human resources representatives are acting as a type of pre-screener for the company in that they help attract the type of person that’s right for the company in terms of attitude and performance. 

2. Hiring Employees

The role of human resources in the hiring process begins with reviewing resumes. A human resources employee goes through the resumes that look to be the most qualified for the position and pulls them for further review. Once the HR representative goes over the resume, they then contact the candidate and arrange an interview. The HR representative also communicates with the department manager who’s in need of an employee to let them know that they’ve found candidates for the position and that interviews are scheduled.

When the potential candidate comes in for an interview, the human resource representative may sit in on the interviews with the department manager. After interviews have been completed, the department manager lets the HR representative know about their decision. The HR representative then contacts the successful candidate and has them come in to fill out paperwork. 

3. On-Boarding New Hires

Once a candidate officially becomes a new hire, the human resources department is their first stop. The new hire sits down with the HR representative to learn about the day-to-day operations of the company, what the new hire should expect, who they report to, and what day they’re supposed to start. The HR representative informs the new hire about their benefits package, goes through the company handbook with the new hire, and makes sure the new hire fills out the required paperwork for payroll and health insurance. 

4. Employee Support and Management

Employees sometimes run into difficulties with their employment or personal lives. They can turn to their manager for help, but they’re best served by going to the human resources department and talking to an HR representative. The HR representative listens to the concerns of the employee and offers them advice on how to handle a situation or if they need to take advantage of state or federal legislation that can help them during times of personal issues. 

5. Legal Compliance

This is perhaps the most important why human resources are important to an operation. Over the decades, employment law has changed in ways that give employees the option to sue employers who haven’t followed various employment laws. While employers can and still do break the law, the numbers are far fewer thanks to the human resource department. Human resource managers have the job of reviewing emails and video footage to determine if laws were broken or if someone behaved in a less-than-appropriate manner to someone else. Upon review, the human resource representatives and management come to a conclusion based on what they viewed and decide what actions to take next. 

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