The human resource department is working as the heart of the body in an organization because it hires the workforce for the company and also manages them to increase the profitability of the business. The HRD is essential to run the business in a highly competitive market.
What Is The Importance Of HRM In An Organization?
The company needs to invest in the human resource department to increase the profitability of the business. Following are the benefits of HRM in an organization.
Strategic management
The human resource manager makes strategic decisions for the betterment of the company and the employees. They made a rule for the employees that maintain working flow in the organizational premises.
Wages And Salaries
The calculation of wages and salaries has always been an integral part of an organization’s HR functions. However, the adaption to the HRMS process has proved to be a rescuer in not just streamlining the payroll process. But also in helping the organizations oblige by the statutory compliances and IT returns of the entire workforce.
Analyzing Benefits
The human resource department analyzes the performance of the employees and finds out the lacking points and gives training to the workforce according to the analysis report. The performance analysis improves employee’s productivity and also increases the profitability of the business.
Safety And Risk Management
Employees’ safety is essential, and maintaining the same is the duty of the HR manager. The employer must have to continuously look over the safety measures of the employee and try to avoid hazardous activity in the working premises.
Minimizing Liability Issues
The human resource department must collaborate with the accounting department. They need to look over the company’s liability and assets management-related issues because the HRD is a section that has a direct touch with the existing customers and employees of the company.
Training And Development
Employee’s training and development program is essential to enhance the skills. The human resource department needs to conduct the training and development program for the newly joined employees and existing employees. Sometimes they arrange the guest talk to motivate their employees. These human resource management practices increase the skills of the employees and their performance too, which is also profitable for the business.
Employee Satisfaction
The human resource department has a direct touch with the workforce of the company. Thus, the satisfaction of the employees is the primary responsibility of the HR manager. The retention rate of the employees depends on the satisfaction of the employees. In short, satisfied employees stay in an organization for a more extended period of time.
Recruitment And Onboarding
The primary task of the HRD is recruiting the best candidate for a vacant place. They analyze the resume of the candidate and select a few best applicants and call them for personal interviews; from that applicant, they have to choose the best one for the organization culture. After recruiting the employee, the next essential job of the HR manager is the onboarding of the new employee. Through the onboarding process, they teach employees about the rules, regulations, and culture of the company.
Hiring Process
Hiring/selection campaign is another important duty of the HR admin. They have to find the place from where they hire the talent for the company—for example, campus placement.
Maintaining Rules And Regulations
The human resource department makes some rules and regulations for the employees to maintain the workflow in working premises. For example, they make reporting rules, attendance rules, and whole HR policy that maintain discipline.
Conclusion
Above mentioned are the small things that affect the growth of the business. Thus, the company needs a human resource department to manage the workforce and enhance the profitability of the business.
