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Why Is Human Resources Important?

Business isn’t all about designing a quality product and implementing unique ideas. A lot goes into ensuring smooth day-to-day operations and making an organisation successful. 

The HR department recruits talented employees, trains staff, manages benefits, establishes company culture, and ensures compliance with the law. 

A look into their duties will highlight why the HR department is vital to the operation of any business.

What does the HR department do? 

Human resources’ goes above and beyond to attract talent and improve employee performance. Because they aim to take the business to new heights, they desire to achieve more and help the company function better. 

HR services include anything related to the management and development of employees within the company. 

Basic HR roles include the following: 

  • Recruitment and hiring 

  • Onboarding employees 

  • Training and development 

  • Safety 

  • Equity, diversity, and inclusion 

  • Payroll 

  • Law compliance 

  • Boosting employee productivity 

  • Benefits packages 

  • Improving the company’s culture 

HR professionals have experience in working with people from different backgrounds and resolving their conflicts. It helps promote a safer and healthy workplace environment.

Why is Human Resources important? 

The human resource department is an integral part of any business. Yes, the department doesn’t directly relate to the business. That is, you won’t see an HR professional creating products, serving customers, or developing software. But surprisingly, they are the key to boosting a company’s productivity. 

Here are some reasons that highlight HR's importance to any business.

Recruiting and Hiring Talent 

An employee can make or break any business. Talented and skilled employees significantly contribute to business growth, while unprofessional employees can risk business operations and reputation. 

HR professionals are on the lookout for experienced, knowledgeable, and competent employees who can promote a positive work culture and bring innovation to the company. 

They recruit employees through various ways, from employee referrals to online advertisements and in-person events to job listings. 

Generally, organisations have a formal recruitment plan, and HR professionals follow it when recruiting employees. 

This may include scanning their resumes and conducting initial interviews to scoop out the ideal candidates. Later, they can refer them to the relevant staff members for an official interview. 

They are also responsible for providing relevant information about applicants to the hiring managers. 

Apart from this, HR may also suggest a salary package and guide hiring managers about related processes. 

After discussing details with the authorities, they also share the starting date with potential employees.


Onboarding involves assisting the new candidates through paperwork and educating them about benefits. 

HR also trains the newly hired employees and communicates to them the company procedures. This eliminates confusion and ensures the new candidates a smooth first working day. 

Studies reveal that a standardised onboarding process results in 62% more productivity and 50% higher new employee retention. 

Consequently, HR professionals can minimise turnover with appropriate onboarding.

Training and Development 

HR trains and develops new and existing employees. They establish several training programs and blend the latest learning practices to help employees reach their maximum potential. 

Skilled HR professionals successfully polish the skills of their employees and help them see what they can achieve. Proper training prepares aspiring leaders for managerial and supervisory positions. 

HR also keeps track of employee participation and engagement in training sessions to determine the impact of learning.

Managing Employee Benefits 

The HR department provides information about benefits, monitors the paperwork, and educates employees about the enrolment period. They also keep track of competitor benefits and how they can implement them to meet employee needs. 

This requires them to work closely with benefits providers and create a valuable employee package.

Safety and Compliance 

Staying abreast with the latest regulations is essential because of their ever-changing nature. 

Fortunately, HR professionals ease this business task by understanding the laws and ensuring the company adheres to them. This keeps the business from running into unexpected penalties. As a result, everyone at the workplace feels safe and secure. 

Apart from this, HR also ensures employees' physical and emotional safety. They take steps to keep the working environment free from danger and hazards.

Building a Company’s Culture 

Because the HR department enforces rules related to discrimination and attendance, they are responsible for building a positive work culture. HR professionals work to minimise workplace conflicts and resolve employee issues. 

The company’s culture significantly relies on the HR department. How smartly you tackle disputes and promote a healthy culture can transform the entire work environment. 

This leaves an impression on the new employees and boosts the chance of positive word of mouth. 

A company’s culture is typically important for organisations seeking to develop diversity, equity, and inclusiveness. Without a competent HR team, organisations will struggle to implement diversity, equity & inclusion (DE&I).

Employee Satisfaction 

The relations specialists in the HR department help businesses achieve the highest satisfaction levels; the more satisfied the employees, the higher their morale and productivity. 

Boosted productivity is directly proportional to a company’s growth. 

Therefore, HR professionals administer numerous opinion surveys and seek employee input. This helps them understand employee job satisfaction levels. They also discover employee concerns and work to sustain healthy working relationships.


Payroll isn’t merely about the figures; HR specialists have a lot on their plate when managing wages and salaries. To begin with, they establish compensation structures to set competitive pay. This encourages competent employees to choose you over your competitors. 

They also conduct surveys to ensure the compensation costs align with the company’s finances and expected revenue. 

Finally, they also keep themselves informed about employment laws to ensure accuracy when compiling payroll data.


Why are Human Resources crucial to businesses? 

HR is important because it helps establish, reinforce, and alter a company’s culture for the better. From hiring to onboarding and training to strengthening values, the human resource department plays a key role in determining a company’s success.


Employing a competent HR team isn’t a luxury but a necessity. 

Looking after complicated organisational tasks is challenging, and not having a team of HR professionals can cost businesses productivity, finances, and reputation. 

If you plan to enter the thriving field and flourish, consider completing a UCD Professional Academy Diploma in Human Resources. A professional course helps aspiring candidates further their skills and become successful in their HR careers.