The Importance of a Human Resources Department

January 9, 2010

Most people in business have heard this statement before: Better check with HR first. Even though it may seem like a pain that practically everything has to run by them first, there really is a huge benefit to having a functional, involved human resources department.

A good human resources department protects its company from risk. It protects the employees and informs them of their rights. A human resources department is necessary for any growing company.

I have found that growing companies oftentimes forget to revamp or create a human resources department once they expand. A bookkeeper/payroll clerk will certainly not provide all the resources and information needed when a small business owner increases his company from five employees to 20, or decides to purchase two new pieces of property and conduct business out of them.

A weak human resources department can be detrimental to a company. Locations that are not working daily with the owner will operate with a careless attitude, especially if there is no HR department to contact when activities occur that are inappropriate.

This certainly increases the risk of that small business owner that has taken on a bigger responsibility. As a manager or business owner, if you see that your company is expanding, make sure that your HR department and its knowledge is expanding as well. It is in an owner’s best interest to make sure that his company is protected.


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