What is HR and Why is it important for my Business?

HR stands for Human Resources and covers a wide range of aspects within your business. To summarise, HR is all about employee performance and describes the management and development of employees within a company. 

Aside from employment law and compliance, holiday management, training, recruitment, onboarding and managing payroll, HR also promotes positive business culture which in turn, improves employee retention, engagement, and productivity.  

An awareness of our own and employee wellbeing has never been so prevalent. The last couple of years has impacted on people’s wellbeing in ways we are still discovering. The HR function in a business takes the lead on employee wellness and personal development. 

The Importance of HR 

When a business is small, it can be difficult to see why you would need to have an HR function in your business. The culture is defined because you know how you want things to run. Day to day recruitment and people management becomes greater the more your business grows. Unhappy staff can be very costly for your business. If employees are unhappy, poorly managed/developed or there is a poor working culture developing, you will find productivity and chance of long-term success dwindle.  

Reputation and employer brand is key to hiring the right people to help your business grow, so is HR important? The answer is yes and, in some ways, the most important part of your business. 

The key aspects of HR 



Performance Management and training

Building and maintaining Business Culture

Pay Structures

Legal and regulatory compliance

Absence management

With a small team it may be possible to manage HR in house, the most effective way to manage the daily demands is to invest in a great HR system. You may need one off HR projects managed to improve business culture or manage an acquisition/merger/disciplinary. 

HR covers so many different areas of your business but sometimes employing someone to do this within the business can be costly and challenging. 

Outsourcing HR is often a practical and cost-effective solution to ensure your business is running smoothly and your employees have the best experience in their role. 

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