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Why Is HR Important For A Company?


talent pool management system

Human Resource is an important department in every organization. This department deals with the proper functioning of the employees and their relationship with the organization and the other employees. Some might ignore the importance of an HR department, but when installed, the difference can be seen in work progress.

The HR department of a company is hired or appointed to take care of the employee and encourage talents in various ways. They are responsible for upskilling the employees and increasing performance that can lead to the progress of the company. The HR department is the one to concern if you have difficulties with other employees or want a leave.

Main functions of HR

Traditionally, the Human Resource department had limited jobs in a company, such as hiring and releasing monthly payouts. But today, an HR department has become important for an organization that plays various other roles. The main functions of the HR department are:

1.     Hiring the candidates

The primary function of the HR team is to shortlist and hire candidates for their company. The screening process is entirely taken care of by the HR department. The primary factors while hiring candidates are profile assessments, test assessments, interviews, group discussion assessments, and candidate analysis.

2.     Performance management

The HR department works effectively in managing the performance of the employees. This does not mean just keeping track of the good and bad performance streaks of an employee. The HR department has a dedicated talent pool management system to help the employees perform well and train them to do better in the future.

3.     Maintaining a positive work culture in the company

An organization goes through many ups and downs while working on projects. Sometimes the pressure is too much, and the employees might feel overwhelmed. But the projects must be done and completed on time. HR must encourage employees in such cases. It is also a vital role of the HR department to take care of the employees who are treated well by other employees. Eliminating toxic culture is up to the HR department.

4.     Holiday management

The HR department is responsible for deciding holidays and celebrations. A part of positive office culture, HR must plan some events so that the employees get a break from constant work pressure. Holidays must be assured for the same reason. The HR department also approves the leaves of the employees.

5.     Legal services

The HR handles the legal, regulatory norms of the company in compliance with the official rules. The HR team must have a fair and sound understanding of the legal norms and take care of all the proceedings of the company and the employees who are abiding by them. The HR also makes rules and regulations of the company and can hold a person in charge when anything is overlooked.

Why is HR so important?

Every company has several administrative departments like finance, legal, accounts, mechanical, etc. these departments have their specific type of job that ensures the tasks being done properly that are needed to complete projects and make progress in projects. But, what makes a company functional? The incoming projects or the employees?

A company is dependent on both the employees and the projects to function properly and generate revenue. Most companies have the technical and finance managing primary departments that make sure that projects are coming in but what about the employees? The primary departments are destined to be busy enough not to get time to handle employee challenges.

Thus, a human resource team is important to look after the employees and their challenges. The human resources department is specially trained to carry out this task because the primary departments can make sure to bring in projects, but if the employees don’t work, the projects remain incomplete.

Thus, to take care of the employees and their needs, a human resource team is necessary. You can look for a human resource management tool at and build a robust HR department.

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