Many businesses will have a Human Resources (HR) department that deals with company recruitment, placement, training and the development of staff. Human Resource Management (HRM) is a process for staffing the organisation and sustaining high employee performance – important for any business to have great efficiency. Simply put, it is managing the employment relationship of a business.
What key aspects of a business make HR so important? Staff are (in most businesses) the largest revenue cost. They’re a volatile resource, who could leave the company at any time. Staff are also a store of corporate knowledge, and in a customer focused business, the means of service delivery.
Retaining and developing great staff allows you to use their skills to help develop your business. Individuals should also contribute more than they cost, and in an industry where customer care is critical, staff will act as the face and representatives of the brand. So it’s crucial that they are nurtured and developed right.
Businesses are dynamic environments. Internal and external forces can manipulate day-to-day proceedings and the way a business manages its staff. Legislation is one of the most important aspects. The EU employment law is highly complex and changes frequently. The contract of employment is key to the employer/employee relationship.
So is the economic enviroment(s) in which the business operates. The global economy and the structure of the labour market could be key factors that affect HRM. Also as technology begins to improve and develop, staff will need to be kept up-to-date and trained regularly to make sure you get the best out of them.
So how important is HR to a business? In a customer focused industry, staff will always be a critical factor. How you deal with and manage staff will greatly affect how well your business operates.How important do you think HR is to a business? Let us know in the comments below!