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October 2, 2020

Why the Human Resource Department is Important

For any organization what sets it apart from its competitors are the skills and qualities of its employees—its human resource. It goes without saying that managing the human resource of an organization is a key requirement of ensuring that the human resource maintains its productivity, efficiency and creativity. The human resource department is typically charged with the responsibilities for recruiting, hiring, training, promoting and retiring the human resource. All of these activities are carried out in line with the goals and objectives of the organization. However, many times the importance of this department is underestimated which leads to poor human resource planning. This article explains some of the key factors that make the human resource department valuable for every organization.

1. It centralizes all human resource planning

Some people believe that each functional head can be the best planner for their human resource needs. The reality is quite different. Having a centralized human resource department can lead to better planning and resource allocation. For example, the human resource department would know if an employee needs to be hired or transferred from another department or branch to fill a vacancy. This helps to reduce the costs and time required to employ, train and move people across positions.

2. It minimizes the training budget

When an organization has a single human resource department that is responsible for the organization-wide training of employees, the training costs are significantly reduced. A single department can compile details of the training required by employees in various departments and ensure that the training is delivered in a single session instead of organizing multiple sessions with added costs and scheduling challenges. In this way, the organization is able to use its training budget efficiently.

3. It performs a strategic function

Organizations should look at their human resource department as more than just a support function. Given the competitive value of a superior pool of employees, the human resource department can offer many strategic insights for future planning. It can contribute to strategic planning discussions by compiling data about the skills and competencies that the company would require in the next two, five or ten years. Hence, the human resource development can focus on the recruiting needs of the company while the departmental heads can focus on their functional expertise.

4. It assumes responsibility for employee management

The human resource department is important for any organization because it offers uniform and consistent policies to ensure employee satisfaction. This covers a wide range of issues including compensation, disciplinary actions, leave policies, and so on. Employees have a single point of contact for addressing these issues instead of going to their respective managers. In this way, the organization also benefits by offering a single mechanism for addressing these issues based on policy instead of bias or personal preference.

5. HR creates an engaging workplace environment

The HR department directly ensures that the organization offers a productive and supportive environment for its employees. In order to perform at their best, the employees need a safe, pleasant, motivating and enabling environment. The HR department identifies the needs of different departments and provides the resources to them. It also enables job descriptions and reporting lines are clear to avoid any kind of conflict. Moreover, it ensures that employees work without stress and develop good morale by organizing a variety of team-building exercises, ceremonies, events and activities throughout the year.


The human resource department is extremely important for any organization because it offers services that build on the strategic value of the organization. It helps to recruit a talented workforce and nurture it into a source of competitive strength for the long-term success of the organization. Investing in a stable and strong human resource department can bring great benefits to the company both in terms of organizational performance and employee satisfaction.