Why is HR Essential for Your Company?

human resource

Whether you’ve just started your company or are already running a well established firm, you still require a team to back you up. You have to conduct recruitment, manage payroll, comply with workplace mandates, set up organisational policies for your employees and take care of general administration. How can you manage all of this along with running your core business operations? Set up an HR department; this is what they do.

An HR department is vital for every business. If you think you can manage without having an HR team, there is a greater chance that you’d lose your valuable employees and face lawsuits, if you don’t have trained and skilled human resources professionals on the team.

Let us take a detailed look at why HR is a must for every business.

human resource management



Professional workplace advisors and HR skilled people can help you come up with your own set of policies and procedures so that all your employees follow the same rules, and know what is expected of them. The HR department can come up with standard procedures for taking sick leaves, paid time off and employee recognition and benefits. The team also decides penalties or actions to be taken if your employees are absent, late, behave unethically or break any of the rules.

Once all the rules have been laid down, HR publishes the official employee handbook, and then gains confirmation from employees that they have read and understood the policies.


Hiring the wrong person for the job can cost you too much. However, if you have an HR team by your side, you wouldn’t make this mistake. HR professionals are trained, and can figure out if a candidate is lying or hiding some facts. Plus, they also conduct background checks and get relevant details about a potential applicant before bringing them on board.

recruitment process


Managing the payroll is a huge task, but HR professionals do it quite efficiently. They ensure that all salaries are paid on time, add bonuses to the base amount, deduct pay for unauthorised leaves, and deal with tax compliance.


Workers compensations, health care and retirement packages are huge expenses for any company. HR professionals can help you subscribe to these plans at the lowest rates possible. If you offer additional benefits such as discount programs, employee assistance programs or something else, HR can help you set up proper plans.


Employment laws revolve around medical leaves, discrimination, sexual harassment and other domains. The HR department ensures that your business complies with state and federal business laws.

employee rights

Performance Management

How well are your employees doing? This is difficult to judge until you have proper systems and metrics in place. HR department can set up these systems and design plans to measure the performance of all your employees. If someone is not performing up to the mark or is violating the code of conduct, HR takes necessary actions, and when someone does well, the HR awards them with incentives and rewards, so as to boost their morale and retain employees.


HR oversees the termination process, and ensures you won’t be charged for unfair practises.

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