Four Ways Human Resources Impacts Business Success

Joseph Stubblebine
Posted by

Human resource management is the important link between your organization and its employees, helping your business meet its goals through recruitment, risk management and other procedures. Whether you choose to outsource human resources tasks to contractors or hire a team of professionals, there are a number of benefits of HR that directly or indirectly impact the success of your business.

The first major way human resources impacts success is through effective recruitment of new employees. After identifying the need for a new position or replacement, an HR manager writes a detailed job description to attract the right candidates. After gathering an applicant pool, the manager selects the most qualified candidate for the position. The use of tools such as Internet job boards, print advertising and social media like LinkedIn and Twitter help HR managers to find candidates that may otherwise be overlooked. This helps you to equip your business with the very best employees, leading to an increase in productivity and efficiency.

The second way human resources impacts success is through employee development. According to a study from Harvard Business Review, many high-achieving workers are not getting the formal development, including coaching and mentoring, that they desire and value. An effective development plan by human resources management that seeks to address weaknesses, improve performance and gauge satisfaction can help to resolve this. The respected financial site states that development planning increases loyalty of employees, which in turn impacts productivity. It also increases employee retention, so fewer resources are spent on recruiting and training new employees.

HR management also helps your business succeed by managing risks, including handling worker disputes and taking measures to prevent occupational injuries. The Bureau of Labor Statistics states that there were 112 cases of occupational illness and injury resulting in missed work days for every 10,000 full-time workers in 2012. Thus, risk management procedures implemented by HR help to avoid lost productivity as well as avoid the devastating financial loss resulting from a worker lawsuit.

Finally, human resources helps your business achieve success through change management. The creation of a new department, implementation of new a technology, merging of departments or other change in the organization must be properly implemented to keep workers happy and ensure a smooth, productive transition. Human resources managers plan for the change, help to prepare workers, create an implementation strategy and support continued improvement following the change. This process allows you to improve your business at a faster pace with a smaller chance of upsetting employees or encountering roadblocks.

The benefits of HR management are many, and it is important that you choose the most qualified HR professionals to maximize these benefits. Although human resources procedures such as payroll, record keeping and benefits administration may be easily outsourced or completed digitally, there are still plenty of ways that human resources management can help your business succeed.


(Photo courtesy of Keerati /


Become a member to take advantage of more features, like commenting and voting.

Jobs to Watch