How does HR add Value to a Company
As we move towards imagining a super effective work eco-system in the post-pandemic era, the Human Resources of an organization fit in its bigger picture. HR has multiple responsibilities to fulfil to align the vision, mission, and goals of a company. There are multiple reasons why HR is crucial for organizations of every size and shape.
Let's look at how HR adds value to a company:
1 - Hiring, Retaining, and Developing Talent:
HR is responsible for finding, recruiting, and training the high potential employees. They effectively facilitate the mapping of talent to value ensuring that the company has the right mix of skills and expertise to achieve its goals. It focuses on agility, identity and scalability while recruiting people. It develops talent by reskilling and upskilling through various training programs.
2 - Providing meaningful connections and engagement:
Engagement is a cardinal component of any corporate culture. Companies with high employee engagement are more profitable on the business front. Employees who feel valued and appreciated are more likely to perform their best towards achieving the company's goals. Human Resources play an important role to encourage engagement in an organization through various employee engagement programs. These include events like award ceremonies, team-building programs, birthday and anniversary celebrations and various other events.
3 - Supporting Employee Well-being:
Successful organizations that create better employee experiences have a better bottom line. This in turn helps them to strengthen individual, team and overall company performance. Supporting employee well-being for maintaining a happy and productive workforce is one of the most critical roles played by HR. The ways through which employee well-being is promoted are as follows:
Offering a safe and healthy workplace is the foundation of employee well-being. This includes maintaining a clean, organized, ventilated, and adequately lit space. HR ensure to take proper measures to reduce accidents and injuries at the workplace.
Providing employee benefits such as paid time off, health policies, and wellness programs facilitates employees to manage their well-being effectively.
HR is instrumental in addressing the skill gaps and ensuring employees' training needs so that they can advance in their roles. This helps in increasing employees’ satisfaction levels and boosting their morale and productivity.
4 - Managing Employee Relations:
Conflicts are an inevitable part of any social setup and corporates are no exception. HR is instrumental in managing the conflicts that arise in the workplace.
HR helps in developing policies and procedures that outline the code of conduct for employees to make them behave in the desired way.
They effectively communicate the consequences of non-compliance to employees to avoid unpleasant conflicts at the workplace.
They play a crucial role in finding the best resolution within the legal norms of the organization and enforcing its policies.
They identify the causes of conflicts and address them effectively to ensure fairness in the workplace
Promoting a positive work atmosphere is important for them to elevate employee morale and productivity.
5 - Developing and implementing HR strategies:
In a fast-moving tech era, there is a constant need for evolving and providing organizations with new ways of improvising their operations to gain an edge over their peers. Companies that reallocate talent in step with their strategic plans are more likely to outperform their competitors.
HR works with senior management to create and implement HR strategies that align with the firm's overall business strategy, helping to drive growth and success.
They train employees to make them understand the new processes and technology.
Through review processes and employee feedback, HR identifies which strategy and technology can be effective in improving the work output. This in turn facilitates smooth transition, increased productivity, and better outputs.
6 - Ensuring Compliance:
HR Department is responsible for ensuring compliance within a company. It makes sure that the company complies with all relevant employment laws and regulations, reducing the risk of legal action and financial penalties. Let’s look at how it is done:
HR create, update, and communicate policies and procedures for ensuring compliance with laws and regulations.
Time-to-time maintenance of actual employee records such as employment agreements, performance reviews and payroll details facilitate HR in assuring the compliance within the organization.
Internal audits are conducted by HR for monitoring compliance within the organization.
HR work with external auditors to make sure that the procedures and policies are compliant with laws and regulations to avoid any reputational damage.
In a nutshell, HR attracts, and retains the best talent, aligns HR strategies with the company's business goals and fosters positive employee relations to increase satisfaction and productivity while ensuring a safe and healthy work environment for all employees. Thus, HR is a critical department, and it won’t be an exaggeration to call it the ‘heart and soul’ of any company.
