The importance of human resource management cannot be overstated. For most organizations, whether you have an actual Human Resource (HR) department or not, the HR function encompasses critical employment decisions such as hiring, compensation, benefits, training, and performance management. As the well-worn adage asserts, companies are only as good as their people!
Whether large or small, this article outlines three critical reasons why Human Resources is important for your organization.
Employers face legal requirements and challenges on many fronts. On the Federal level, the FLSA (Fair Labor Standards Act) requires that covered employers correctly identify workers as either exempt or non-exempt, and pay overtime accordingly.
The #MeToo movement has swept the nation and barely a month goes by that the news isn’t flooded with claims of an employer facing allegations of sexual harassment. In fact, according to 2017 statistics, 6,696 sexual harassment charges were filed with the EEOC (the Equal Employment Opportunity Commission), and they obtained $46.3 million in monetary benefits for victims of sexual harassment. These statistics underscore the potential liability faced by employers across the nation.
Many cities and states also have a plethora of legal requirements. Employers must navigate the sometimes-complex rules of minimum wage, unemployment, workers’ compensation and workplace safety. Employers that don’t understand their legal obligations face fines and other penalties.
Solid HR policies provide guidance for employees and employers alike. They assist employees in understanding their rights and responsibilities and employer expectations. They assist employers in clearly communicating values, outlining processes and procedures, and laying the foundation for consistency and fundamental fairness.
Simple questions for employers include:
While it is impossible for employers to completely erase legal exposure, strong HR practices certainly go a long way toward minimizing that exposure. Legally sound policies and practices should encompass every step of the employment life cycle, from recruiting and hiring to discipline and discharge.
HR Takeaway: Savvy employers take the time to understand and mitigate their legal exposure
First, the good news. An engaged workforce has the potential to increase creativity, problem solving, innovation and, ultimately, productivity and profits.
And now for the bad news. The well-respected Gallup team reported that only one-third of U.S. employees are engaged at work. Gallup defines engaged employees as “those who are involved in, enthusiastic about and committed to their work and workplace.” Unfortunately, that means possibly only one-in-three of your employees may be actively engaged at work.
Even worse, Gallup found that a percentage of workers are actively disengaged. Gallup describes disengaged workers as emotionally disconnected; as working against their employers’ interests; as less productive; as more likely to steal from their companies, negatively influence coworkers, miss workdays, and drive customers away. Add to this the staggering cost to employers in lost productivity and loss of customers.
Solid HR practices have the potential to positively impact engagement levels at your organization. For example:
HR Takeaway: Savvy employers understand that solid HR practices support an engaged workforce and, ultimately, assists in driving productivity and profitability.
Employers that take the time to dial-in their HR practices reap the benefits in efficiency and effectiveness, saving both time and money. Most employers are consumed by the very nature of providing their product or service. This makes perfect sense, as the product or service itself is the reason for existence AND, let’s face it, that’s what pays the bills. However, when HR aligns with organizational strategy and supports organizational goals, a powerful synergy is created.
Sloppy HR not only creates a legal liability, as discussed above, it also creates a distraction. Every distraction diverts valuable energy away from the organization’s mission and wastes time. In the fast-paced world of business, time is money. Efficient HR keeps the organization moving forward like a well-oiled machine. HR functions like recruiting and hiring are completed in a timely and cost-effective manner. Decisions are made that actually make sense. Time isn’t wasted reinventing the wheel or backtracking.
HR Takeaway: Savvy employers understand that effective HR practices, regardless of the size of their business, are worth the investment.
Author: Stacy Johnston
About the Author HR thought leader, Stacy Johnston, provides innovative HR solutions with a mission to support organizations in understanding and engaging their biggest competitive advantage… their employees. Johnston writes and speaks (and let’s be honest… obsesses!) about contemporary HR topics. She is a licensed attorney and holds the SHRM-CP and PHR credentials.
About Audacity LLC: HR Consultants
Audacity LLC’s passion is HR. As HR consultants, they help organizations build peace of mind, dial in productivity and enhance employee engagement by creating agile HR solutions that align with mission and core values. Comprehensive solutions include tips and tools to effectively recruit, hire, onboard and retain an engaged and skilled workforce. They help organizations build strong, cohesive and inclusive teams and develop leaders at all levels. Bold and innovative Human Resource solutions save valuable time and money.
“Let US focus on HR while YOU focus on what you do best ~ building your organization and serving your mission! From HR policies, employee handbooks and training to recruiting, hiring, onboarding and performance management. Let our expertise be your guide!”
Ask about our half-day, full-day and multi-day training options. Reach out for a free and confidential consultation at info@audacityhr.com.
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