• Tiffany Slater

Why HR Management Matters to Your Organization

Human resource (HR) managers do a lot more than just hire and fire talent. Their role is pivotal to organizational success. These specialists guide employees and leaders by administering policies that protect the organization and shape the culture of the organization.


As a small business owner, you may be conducting job interviews and screening potential candidates yourself. Or perhaps you assign these tasks to someone in your team. But there's a lot more that goes into HR management — and many of these functions require specialized knowledge.


Most organizational processes and policies that involve people are managed by the HR department.


These professionals handle talent management, employee retention, benefits systems, performance appraisal, and other key aspects. They also develop systems for compensation, employee training, and succession planning.


HR management is crucial to any organization, big or small. Even if you're a startup, you can still benefit from the guidance of an HR professional. Here's why human resources management matters and how it can add value to your business.


The Ever-Changing Role of HR Management

Decades ago, HR departments were largely responsible for employee recruitment. Their role has changed drastically in recent years.


Today, HR management holds a wide range of functions, from employee training and development to payroll.


These specialists drive organizational change, ensure compliance, and help teams achieve peak performance. They can help you build a thriving workforce by strategically managing people and organizational resources.


Nearly half of new hires fail within 18 months. About 90 percent of them do so for attitudinal reasons, such as low motivation or disengagement. This leads to high turnover rates and increased overhead expenses for organizations.


Retaining talent is more cost-effective than recruiting and hiring new people. The average cost-per-hire is around $4,129, according to the Society for Human Resource Management. Furthermore, it takes over 40 days to fill an open position.


Depending on your industry and type of business, you may not afford to wait that long to replace an employee. Not to mention the costs associated with new hires. A strong HR team can help you find the right people and mitigate these risks.


HR specialists are also up-to-date with the latest employment laws and compliance regulations. Therefore, they can help your organization achieve legal compliance and avoid hefty fines as a result of legal backlash.


These professionals will guide your employees every step of the way. They will address their concerns and help them reach their full potential. They can also identify top performers, develop incentive plans, and increase employee engagement.


Develop More Effective Workplace Policies

As you see, HR touches every aspect of an organization. It has the power to change organizational culture, drive innovation, and improve team performance. These positive changes are often implemented through new workplace policies and practices.


Every organization has policies to ensure continuity, fairness, and optimal performance. The HR department is responsible for drafting these policies and making sure that management has the tools to implement them fairly and consistently. These may include but are not limited to:

  • Internet usage policy

  • Attendance policy

  • Health, safety, and security policies

  • Workplace diversity policies

  • Employment practices and placement

  • Compensation and benefits

  • Dress code

HR specialists develop workplace policies according to the organization's values and existing procedures. They also take current legislation and regulations into account to ensure that your business complies with the law.


Their efforts can help you build a positive organizational culture that drives productivity and performance.


Increase Employee Retention

Incentive programs make it easier to attract and retain talent. Therefore, it's not surprising that more than 45 percent of executives in large organizations see these programs as an investment.


But that's not all.


Organizations that have incentive programs in place report a 28 percent decrease in employee dissatisfaction than those that don't offer these perks.


One of the functions of human resource management is to develop and implement incentive plans. They can help you determine which incentives drive work performance and align with your organizational goals.


Furthermore, these specialists can implement strategies to attract top talent, reduce turnover, and increase employee loyalty.


The HR department also has a developmental role. As a manager or business owner, you can work with your HR team to help employees acquire new skills and grow as professionals. These measures may improve employee retention and reflect positively on your business.


Build a Thriving Organizational Culture

HR management plays a vital role in organizational culture. These professionals know how to link change to the strategic needs of your business and shape workplace dynamics.


Different generations have different expectations regarding organizational culture. Their values are often influenced by industry trends, ever-changing technology, and other factors.


For example, you may find yourself in a position to adopt flexible work and telecommuting policies. This strategy can significantly reduce your costs and increase employee morale.


The HR department can help you develop such policies, train your employees, and conduct an ongoing feedback loop. They can also bring in new employees who align with the desired corporate culture and add value to your team.


Leveraging Human Resources to Grow Your Business

The role of HR management is constantly evolving. These professionals manage employee satisfaction and development, driving business growth. Their goal is to create an environment where people enjoy coming to work.


HR specialists are also in charge of employee safety and risk management. Plus, they are responsible for legal compliance, communications, and more. Each of these aspects influence business performance.


Small businesses often lack the resources needed to set up their own HR departments. Some ignore this function altogether and end up making costly mistakes that affect the organization's bottom line. You don't have to make the same mistakes.



A strong HR team can give your business a competitive edge. At HRTailorMade, we offer HR management services tailored to your needs. Contact us today to find out more and see how we can help!

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