Why is HR important

September 30, 20210

By treating your employees fairly and providing them with opportunities to grow, it will help you achieve your ideas and hit your business goals.

What exactly is Human Resources?

Human Resources (HR) is the management and development of employees in an organization. Which then, increases employee performance.

In traditional terms, HR is focused on hiring, firing, and annual pay review. But in recent years, HR covers an ever-wider remit and is now positively reframed.

Basic functions of HR include:

  • Recruitment
  • Onboarding
  • Managing Payroll
  • Employee Benefits
  • Holiday management
  • Training and development
  • Employment law compliance
  • Safety compliance

Other than this, HR develops a positive business culture, improves employee engagement and productivity, and leads employees on wellness and personal development.

Why is HR so important?

HR allows for employees to feel supported and business leaders will not have to feel pressured and lost to need to feel that they have to find time to deal with people they hire and manage, as their business grows.

This can lead to affected employee satisfaction, culture, and long-term success.

With poor HR, when employees do not feel supported, are not being given opportunities, work long hours, and so on, their motivation to perform is impacted. Thus, resulting in the business underperforming.

When knowing this, people, culture, and business successes go together.

Reputation as an employer is influential in attracting talent. It also impacts customers.

An example would be Uber, from sexual harassment cases to ignoring employee complaints, the resulting bad publicity has undoubtedly deterred many from working there or from using their ride-sharing services. Bad HR has destroyed Uber’s employer brand.

The importance of HR in a pandemic

With the COVID-19 pandemic going on, it forces businesses and people to re-evaluate the way they do business. Companies are being increasingly measured by the decisions they’ve taken and the way they treat their staff.

The impact of ongoing economic uncertainty, remote working, and an all-too-real impact on employees’ mental health are forcing businesses all over the world to place human resources at the heart of their operation.

From supporting managers with remote management skills through to sensitively communicating the consequences of a downturn in business, HR is crucial to the effective management of a business during a pandemic or other significant event.

What are the main functions of HR?

  1. Recruitment and onboarding
    The recruitment process to find the right people to work in your business can take months and can be difficult. Finding a good fit is important.

    Onboarding refers to the whole experience of hiring, welcoming, orienting, and engaging a recruit and helping them adapt to your organization’s culture.

    Having good onboarding maximizes employee engagement and increases retention. Without this, it can have a negative impact and leave talented new employees disengaged.

  2. Performance management and training
    Performance management 
    helps address the skill gaps of employees.
    It is an effective performance management system that enables managers to offer support to employees and identifies future leaders.

    Since employee development contributes towards better employee engagement, increased productivity, reduced employee turnover, and a more positive culture.

    Comprehensive training and personal development help strengthen both the employee’s and manager’s skillsets in the company. By investing in your employees, strengthens your organization and gives your business a competitive edge.

  3. Building and maintaining company culture
    A positive business culture, drives employee engagement, job satisfaction, and staff retention-which drives success. HR ensures the development, reinforcement, and changing of the culture of an organization.
  4. Business communications
    Good communication 
    mitigates misunderstandings-thus, increasing employee engagement, better client relationships, encourages innovation and creativity, and builds a positive culture.
  5. Legal and regulatory compliance
    With HR professionals, there will be a full understanding of employment law and the regulatory requirements of a business associated with staff.

By outsourcing HR needs or hiring a part-time HR manager, it allows business leaders to concentrate on growing their business. Having someone to look after employee-related matters, from absence management through to parental leave policies and beyond, will keep your business compliant and your employees more engaged.


For more information on job availabilities or HR matters, please contact +65 6334 4328 or email at enquiry@primehr.com.sg

Reference: https://www.breathehr.com/blog/topic/business-process/why-is-human-resources-important

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