5 Reasons HR is the Key to Your Company’s Success

In the last few years, the role of HR has expanded to more than hiring, firing, managing employee payrolls, etc. It has become a significant determinant of a company’s success and employee retention.

HR formulates strategies that benefit the company’s overall goals without neglecting the most important component of an organization: its people. With the advancement in HR functions, several companies are resorting to specialized tools and software to aid HR professionals.

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Whether it’s a small business or a large organization, HR is the key to its success and growth. Below are 5 reasons describing the significance of HR in a company.


  • For Appropriate Training And Development

A successful company is the one that creates an environment for the betterment and growth of its employees. HR plays a vital role in achieving this. The HR department evaluates employees’ performance to determine the necessary areas of training and development. They then carry out appropriate training and development programs.

On-the-job employee training is not just important for the company’s success but also for retaining employees as it provides them room for growth. This further reduces employee turnover and increases employee retention. A successful HR professional identifies the future leaders of the company and makes sure they’re well trained and equipped for it.

  • For Effective Onboarding Process

According to research, employees are most likely to stay in the company for a long time if there’s a structured onboarding process. On the other hand, employees are more likely to quit an extremely detailed and difficult onboarding process. The HR department plans, implements, and evaluates onboarding processes and activities for new hires.

Since HR works for people and with people, they have a knack at understanding appeals to people. An effective onboarding process is aimed at providing positive experiences for new hires. It can include formal meetings, games, questionnaires, video presentations, and more to help new hires understand their role and the company’s culture.

  • For Resolving Conflicts

Conflicts in the workplace are a normal occurrence. What’s not normal is not drawing a proper blueprint to resolve those. Unresolved conflicts spiral in one way or another, leading to poor performance and an unhealthy working environment. In addition to that, not intermediating between disagreements may cause employees to feel neglected. A trained HR professional resolves conflicts while maintaining positive working relations between employees of all levels.

Given the diverse nature of employees, their work styles, personalities, and backgrounds, disagreements are bound to happen. A smart HR professional must know how to effectively settle disputes and improve employee satisfaction.

  • For Managing Employee Performance And Satisfaction

A company is successful only if its employees’ satisfaction and performance levels are desirable. If the employees’ don’t perform to the best of their skills and if they’re satisfied in their duties, the company bears its brunt. HR is also responsible for ensuring employees perform to their maximum potential and if they’re satisfied with their roles and working environment.

HR specialists devise performance measurement plans to analyze whether the employee has the skills and qualifications for a particular role. In addition to that, they also conduct employee satisfaction surveys and exit interviews. This helps them understand and address areas contributing to employee dissatisfaction.

  • For Creating A Solid Corporate Culture

Apart from hiring, firing, onboarding, and training, HR specialists are also liable for building a positive and strong company culture. Lack of thereof results in increased employee turnover, reduced motivation, poor performance, unprofessional behaviors, and more. This becomes a huge concern since a company’s success and its employee retention rate heavily relies on the company’s culture.

The HR department must develop and maintain a positive, engaging, safe, and healthy work environment. Not only does a solid corporate culture retain employees but also attracts more candidates and growth opportunities.


Lynne Huysamen

Mommy to a pigeon pair, blogger and online marketer. Lover of chocolate, good books and buckets of coffee.

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