Human Resources departments are often maligned in popular culture, and there is a lot of negative information about how organizations implement and utilize Human Resource departments. But the truth is: a business needs a human resources department. While it may be difficult to establish Human Resources in a smaller business, it will help save your business from potential issues in the future.

4 Reasons That Prove the Importance of HR for Businesses

Here are 4 positive reasons by Bill Schantz why every organization needs to invest in its human resources department.

1. Hiring the Right People

Human Resources can assist you in finding qualified candidates for open positions, ensuring that your hiring standards are met, and they help screen applicants for any red flags.

2. Performance Reviews

Human Resources can help you create a system of performance reviews to know what areas of improvement your employees have and work towards performing at their optimal level.

3. Training and Development

A human resources department can provide training programs for employees by teaching them new skills, or helping them refine existing skills, so that they can become even more valuable to your company.

4. Employment Law Compliance

Human Resources is responsible for staying up-to-date on current employment laws and regulations so that your business does not run into problems with the government because something has changed over time, or certain policies were not updated accordingly, to suit the changes in the law.

Do Small Businesses Need HR Too?

Whether you have a team of 2 or a team of 20, the fact remains that your small business needs human resources. HR is responsible for training, administration, employee relations, and benefits. If you are a solopreneur or if your business is small, it isn’t easy to find time to focus on these things. It is tempting to think that you can skip HR and handle everything yourself — or that it is not important enough for you to outsource. Bill Schantz believes that the problem with this mindset is that it often leads to bigger problems down the road. The cost of hiring and training new employees to replace those unhappy ones can be astronomical, so it is better to know the importance of HR and get HR right the first time around.

How to Form an HR Department for Your Business?

It may seem like a large undertaking to form a Human Resources Department, but there are two important steps that you can take to help make the process easier.

1. Decide who will be in charge of the Human Resources Department. You may want to consider hiring someone specifically for this job, or you may decide to give the responsibility to a current employee within your business. Either way, it is important that whoever you choose has experience in human resources and has good leadership skills.

2. Look at the needs of your business and what kind of budget you have available, and decide how many people will be working in the Human Resources Department. According to Bill Schantz, this could range from one person who handles everything to several people with different responsibilities within the department.

Get Started with HR

We hope you understand the importance of HR and that they are not just a need but a necessity of your business. If you do not have an HR, then now is the time to hire one, or the decision can come back to haunt you in the future when you have to rework with your staff. For more information, check out Bill Schantz website.