A human resource (HR) is a department within an organization that is responsible for hiring, training, managing, promoting and rewarding employees. Human resources is a vital part of a business’s overall success. It also plays a key role in helping businesses adapt to changes in the business environment.
In the early 1900s, the term human resources was used to describe a workforce of individuals. Today, the word is a general term that encompasses all aspects of people who work for an organization. The word is often used interchangeably with “manpower.”
Human resources helps companies and other organizations develop a positive workplace culture. It can also act as a mediator between employees and their supervisors. Using the right tools and resources, human resources departments can help employees get along better and stay productive.
Hiring, training, and promoting the right people can lead to a higher employee retention rate and improve the overall performance of an organization. When done well, HR can even boost productivity. However, a successful human resources department requires staff that is both professional and discreet. They should be able to handle confidential information without breaking the company’s reputation.
For example, the right offer of pay can help attract and retain the best talent. But a company’s compensation plan must also balance with the budget. Creating a competitive pay structure is a job for an HR professional. By conducting market research and putting together an organizational compensation philosophy, an HR team can help an organization make sure it pays its employees fairly.
Another important component of HR is the performance review process. This can be a semi-annual or annual evaluation that defines performance criteria and measures. Having a review process in place allows managers to talk about employee performance, discuss how to improve it and set goals for the future.
Other areas of human resources include employee benefits, payroll management and performance evaluation. An HR department is responsible for providing employees with access to company resources, such as education, training, and career development programs. Similarly, the department is in charge of determining the appropriate level of compensation for each individual.
As with any other aspect of the business, a good HR team should be well-organized. They should be able to manage employee records, provide legal advice and ensure that the organization adheres to federal laws. Depending on the size of the organization, a single HR expert or a full-service department may be required.
Providing employees with a safe and comfortable workplace is another key benefit of HR. Employees are able to get the information they need to perform their duties effectively and efficiently. Also, employees can have peace of mind that the company is adhering to federal and state laws, as well as union rules. Getting disciplinary action under control can also help an organization’s morale.
If you are a business owner or manager, it is imperative that you understand the role that human resources plays in the workplace. Not only can it protect you from employee lawsuits and other employee-related problems, but it can also help your business grow.