Human resource is a broad concept of the diverse population of individuals who make up an organisation, company, economy, or sector’s workforce. By this definition, a narrower focus is human capital, that is, the knowledge that the human people embody. Similar but more specific terms are human capital, staff, associates or just individuals. This narrow focus helps us better understand the value and significance of human resource management.
The term ‘human resources’ is now common not only in the business world but in most industries and occupations. The idea of human resources is connected to a specific set of criteria that should be considered when hiring and training employees. Some people view human resources as a set of personnel tools that aid and support an organisation’s ability to recruit, train and retain its workforce. This type of thinking is deeply problematic for an organisation. In fact, if the human resources department was viewed merely as a personal tool, then the value and significance of human resources would be highly discounted.
Most organisations, businesses and industries have a human resource department (HRD). However, HRD is not solely limited to employment practices training and benefits administration. It actually encompasses many other activities. For example, there may be a separate HRD department that manages talent acquisition, selection and development, or (if it is part of a larger organisation) a HRD department that manages employee compensation procedures, including benefits administration. The HRD department may also coordinate employee litigation and employment law compliance activities.
There are many reasons why hiring and training the right candidates for a particular position is so important to any organisation. There are often issues surrounding workplace violence, discrimination, maternity and paternity issues, and other employment issues. It is also very important to hire and train employees who are right for the job. It is important to have employees with a strong commitment to their roles, as well as high levels of motivation, determination, and productivity. All of these are critical factors when it comes to the success of any business.
Another area that many small businesses miss out on when they hire and train their employees is the area of benefits and insurance. Many employees have no idea what their benefits and insurance packages will be like, nor do they care. HR professionals have seen just how important these policies and benefits are in the past, and it is no longer news. A small business owner who cannot afford adequate benefits insurance may have to cut costs in other areas, such as poor performance or low productivity. By paying attention to these two areas, a human resources manager can ensure that the business is successful.
Employee retention is extremely important, whether it is on the job training benefits and insurance issues, or through additional human resource training programs designed to reduce attrition rates. While employers might not think so at first glance, poor employee retention can result in lost opportunities for the employee, higher turnover rates, and lower profits. With all of the things that need to be considered when hiring and promoting employees, there is no excuse for a business owner to skip this essential step.