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Why Your HR Department Is The Most Underrated Aspect Of Your Company

Why Your HR Department Is The Most Underrated Aspect Of Your Company


Let’s face it: Human Resources is never going to win any popularity contests, with employees or management. Employees don’t appreciate all the rules and regulations that HR is required to enforce, and management doesn’t like many of those policies, either. In fact, you might discover that HR personnel often have to develop a rather thick skin in order to put up with all that negativity!

But the fact is that HR is critical to the success of any organization. Here are some reasons why HR is the most underrated aspect of your company:

  • Enforcing those rules and regulations helps prevent major financial losses for the organization. Employment lawsuits are increasing at a phenomenal rate: 400% in the past 20 years alone. The average employee lawsuit reward is now more than $490,000—which is a lot more than most companies spend on their HR departments in a year!
  • The labor laws which create those rules and regulations are constantly changing. HR department managers join organizations like the Society for Human Resource Management and subscribe to their newsletters just to keep up with it all. Do you really think anyone else in your company can do this in addition to their own job?
  • Labor is your most expensive budgetary line item. Making sure you hire the right people is therefore the most efficient investment you can make in your business. Having a top-notch HR department with a strong hiring process will save you a lot in recruiting and training costs.
  • Once your labor force is hired, you have to keep them. Much of the burden of retention also falls on the HR department. This involves everything from setting appropriate salary levels to an attractive and appropriate benefits package. There are hidden benefits in the benefits package as well: it turns out that chronic health conditions are the reasons behind 75% of healthcare spending, so wellness programs are beneficial for employees and employers alike.

Do make sure to support your Human Resources department. They bring a lot to your organization—and actually save you a lot of money in the process. To learn more about the importance of HR, contact us today.