The debate on the importance of HR is split between two sides, as there are people who appreciate it and others who don’t give it the regard it might deserve. The second side fails to see the real value of HR, and regard it as an executive department that doesn’t really care about the real needs of the employees. However, this is far from the truth. Why is human resource management so important, after all?

Woman holding a clipboard and writing on it

Image source: Pexels

What is human resource management?

Just like its name suggests, this department deals with people. Its main activities include the recruiting of new employees, their directing, and their management. Therefore, the HR departments takes care of the organizational and administrative matters, trainings, the payment part, as well as safety issues, wellness, or other benefits that the company offers to the employees.

The culture of the organization is highly dependent on the HR department. A successful human resource management can help the employees stay motivated, discover the goals of the company, and work together to achieve them.

Why is human resource management so important?

A well-done management of the human resources can bring thousands of benefits to the company. First of all, it is able to create a great organizational planning, making sure the company works as it should. Then, it manages the employee benefits, keeping the workforce content and motivated.

Most of these HR advantages benefit the company on an internal level. However, they can also reflect on the external level as well. Good human resource management significantly improve the image of the company, as well as others’ opinions on it. Let’s find out, why is human resource management so important? Here are some clearer examples of its value within a company.

1.      Recruiting

Human resource management is the department responsible with finding and recruiting new workforce within the company. They start by screening hundreds of resumes, picking up the right ones, scheduling interviews, and then choosing the perfect candidates for the company. This is a complex process which takes a lot of time and resources, and HR keeps it going.

This department knows the interests of the company, so it knows what to look for in a candidate. Based on these interests, it shapes a successful recruiting and assessment process that highlights the needed qualities in an employee. Of course, during the assessment, HR receives plenty of help from managers and other executive personnel. However, they come with creative ways to do it.

2.      Talent management and development

HR deals with everything related to talent management, such as performance bonuses, career paths, or succession planning. If an employee is valuable, HR will take care that they get rewarded. Also, it is able to identify the potential of employees and work with it.

They can offer promotions and bonuses based on results or on the evaluation of potential. This opens the way for future development, which is also the field of HR. So, why is human resource management so important? It also deals with trainings, and it offers employees the opportunity to grow and learn new things through all sorts of programs.

3.      Employee satisfaction

The main concern of HR are the employees. Therefore, the job of the department is to make sure they are happy. Human resource management will assess the levels of satisfaction of the employees, and identify potential issues that might reduce it. Also, it tries to strengthen the relationship between employees and the executive board by applying what it learnt.

Good results and productivity is visible when employees are content. Therefore, the main job of HR is to give them whatever they need and keep them willing to do a great job.

Woman sitting at a desk in a company hall

Image source: Pexels

4.      Risk management

For any company to run legally, employers need to make sure people are working in safe conditions. This is why the HR department needs some health and risk management experts. If not, then the members of this department should undergo some training in the field.

These people should be up-to-date with the regulations regarding safety and potential work risks. Then, they should contact the authorities and assure them everything is all right with the company. Therefore, they are the ones responsible with getting authorizations. Human resource management can also organize some programs and inform employees how to stay safe and avoid work injuries.

5.      Payments

The HR department knows all the financial cues of the company, and deals with the salaries of the employees. These people do a research on the market, and analyze the salaries offered in the same field. They also keep a close eye on the financial situation of the company. Based on these factors, they perform some calculations and inform the executives on the salaries they can offer.

6.      Event management

Events and celebrations are an important part of our lives, and they are present mostly everywhere. Even in a company, people have reasons to celebrate, which require some special events. HR is the one responsible with organizing all celebrations, anniversaries, or any kind of activity.

They are able to find venues and places where to hold the parties and ceremonies, deal with food and drinks, buy presents or other awards, and book trips if necessary. Therefore, team buildings fit the same category. HR doesn’t only organize the activities employees will perform, but also finds places where to organize them and means of transport to get there.

7.      Conflict management

Why is human resource management so important, after all? It doesn’t only deal with the organizational issues, but also with the unpleasant part of working. In a company, just like in any other social group, conflicts might arise. Despite this, things should keep going and conflicts should be solved. HR deals with these unpleasant situations, finds solutions to please anyone, and makes sure everyone benefits from a peaceful working environment.

Two HR people sitting at a desk discussing

Image source: Wikimedia Commons


If you kept asking yourself – why is human resource management so important? – here are some clear answers. HR keeps companies going by making sure everything works as it should. Its main purpose is organizational, but it also takes care of employees and their satisfaction. Without the HR department, businesses will have a hard time dealing with strategies, administrative issues, and personnel.

Image source: Pexels