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Strategic Contribution of Human Resources

At the foundation of every successful business is its employees. Your people are your greatest asset, which is why having a human resources (HR) department is so crucial. This team works to ensure that employees are treated fairly and that they have ample opportunity to grow and thrive. In turn, everyone can do their part in meeting business goals

Here’s what you need to know about the value and strategic contributions that an HR team can bring to your organization.


What is human resources?

Human resources is a broad term, but for good reason. The department oversees the management and development of the workforce, with a goal of increasing employee performance and morale. HR has an ever-growing list of complex roles and functions, including:

  • Recruitment
  • Onboarding
  • Safety compliance
  • Employee benefits and payroll
  • Training and development
  • Communications
  • Managing company risk

The department also plays a large role in developing and maintaining a positive business culture. Research has shown that an engaged workforce is 17% more productive and is 21% more profitable.

Why HR is vital?

In the early stages of growing a business, having a department dedicated to people doesn’t make much sense. With a workforce of just a few people, it’s much easier to pulse check your employees. While it’s reasonable to overlook HR in the beginning, as your business starts to flourish, you don’t want to be stuck grappling with people management. Managing a workforce isn’t a job for everyone. It takes time, effort, and specific skills that not many people have.

As business grows, owners quickly find that there’s little to no time to dedicate to recruitment, hiring, and keeping tabs on employees. In turn, the focus on people gets shoved to the backburner. This is a costly mistake that can have profound impacts on culture, morale, and employee satisfaction.

When human resource management is lacking, it impacts your bottom line. According to the Bureau of National Affairs, $11 billion is lost each year due to employee turnover. Not having an HR department often has detrimental impacts. When employees don’t feel valued, supported, or important, their motivation to perform decreases sharply.

HR is growing and modernizing

Many people associate HR with hiring, firing, and annual performance reviews. While the department oversees these processes, workplace policies, technology, and a changing market have influenced the evolution of HR. One of the most prominent examples is the push for inclusivity. Now more than ever, employees want to work for a company that values diversity, equity, and inclusion. To embrace inclusive practices, HR departments work to better the work environment while improving hiring, training, and reporting practices.

Human resource management has also evolved due to:

  • Modern recruiting methods
  • The growth of digital industries
  • Social media
  • New forms of training
  • Remote and hybrid workforces

As the professional world changes, it’s more important than ever to have a team of human resource managers that can stay on top of trends. In turn, you can have confidence that your workforce is well taken care of.

HR is essential

Having a team of dedicated HR professionals isn’t a luxury – it’s a must. An HR department is key for all businesses, whether you have a workforce of 50 or 500 people. From improving morale to providing growth opportunities to recruiting top industry talent, HR has many roles in the success of a company. HR isn’t an “other duties as assigned” role. These are critical processes that are best left to those with the necessary skills, experience, and expertise.

A satisfied workforce is the foundation of a thriving company, and HR is the cement that keeps everything together.

How we can help

Looking to hire a specific type of HR role but don’t know where to start? Want to add more manpower to your HR department? Interim HR Consulting is here to help. We have access to top-tier human resource talent, which means you can count on us to find the right people for the job.

We know the importance of filling HR vacancies, which is why we fill most roles within 24 hours! With our vast HR experience, we quickly screen applicants and bring you the most qualified candidates. Contact us today and let us help you build an even more robust and forward-thinking HR department.

IHR cannot and does not provide legal advice. It’s important to consult with qualified counsel before adopting any new policies. It’s also your responsibility to determine whether legal review of work product is necessary prior to implementation.