The human resources department, considered the heart of a business, plays a core role in attracting, developing and retaining human resources – the most valuable asset of the organization. This team is a key factor in creating a dynamic, creative and effective staff team, contributing to the success and sustainable development of the business.

The importance of human resources department in a business

The human resources department is considered one of the most important departments of a business, because it undertakes many tasks related to people, such as recruitment, training, evaluation, rewards, discipline, talent development and retention. The human resources department plays an important role in building and maintaining corporate culture, creating a professional, creative and effective working environment.

The role of human resources is also shown in establishing and implementing business strategies, improving processes and enhancing productivity. The human resources department is the bridge between management and employees, resolving problems and conflicts during the work process, while enhancing collaboration and engagement among members of the organization. The human resources department is a key factor to create a differentiation and competitiveness for businesses in the market.

The human resources department plays a core role in promoting business growth and success. The importance of the human resources department is specifically shown through the following points:

• Attract and retain talent: Human resources are the most valuable asset of a business. The human resources department plays a key role in recruiting, training and developing employees, creating a good working environment to retain talent.
• Improve labor productivity: Employees who are properly recruited, properly trained and have a good working environment will have higher labor productivity. This helps businesses increase operational efficiency, save costs and increase profits.
• Enhance creativity: An open working environment that stimulates creativity will help employees come up with new ideas and solve problems effectively. Thanks to that, businesses can improve their competitiveness and innovation in the market.
• Enhance corporate image: Enterprises with good human resources policies will have a good image in the eyes of customers, partners and potential candidates. Enterprises attract high-quality human resources and enhance their reputation in the market.

Basic functions and tasks of the human resources department

Human resources department is an important department in every organization and business. Duties and functions of the human resources department include:

• One of the most basic functions of the human resources department is recruitment, training, development and management of human resources for organizations and businesses.
• The function of the human resources department is also shown in the establishment and implementation of policies, regulations, and standards on salaries, bonuses, benefits, rewards, and discipline for employees.
• The mission of the human resources department is to build and maintain a professional, effective, cooperative and respectful working environment between departments and individuals in the organization and business.
• Evaluate and monitor employee performance, propose improvement and corrective measures when necessary.
• Resolve issues related to human resources such as disputes, complaints, denunciations, and protect employee rights.
• Participate in communication and interaction activities with relevant parties such as state agencies, partners, customers, communities, etc.

Structure of a complete human resources department

The structure of the human resources department can change depending on the size and field of operation of the business. However, a complete human resources department usually includes the following basic teams:

Recruitment

The recruitment department will be responsible for finding, attracting and selecting candidates suitable for the position and corporate culture. This team includes recruitment specialists, candidate evaluation specialists, etc.

Training and developing

The training and development department is an indispensable part of the structure of a complete human resources department. This team includes training specialists, competency development specialists, etc. responsible for designing and implementing training programs to improve employees’ skills and knowledge.

Employee relations management

The structure of a complete human resources department is indispensable for labor relations management. This team is responsible for building and maintaining a good working environment, resolving internal conflicts, and ensuring employee benefits. The labor relations management department includes labor relations specialists, discipline management specialists, etc.

Compensations and Benefits

This team includes compensation specialists, benefit specialists, etc. The compensation and benefit team will be responsible for building and managing the compensation and welfare system for employees.

HR Admin

The HR admin team usually includes administrative staff, clerical specialists, etc. This team is responsible for managing human resource records and organizing administrative activities related to employees.

In addition, some businesses may have the following additional teams:

• Talent management: Responsible for identifying, attracting, developing, evaluating and improving performance and retaining high-quality or high-potential employees for key positions within the company.
• Diversity & Inclusion: Promote diversity and inclusion in the work environment.
• Corporate culture development: Building and maintaining corporate culture consistent with the business’s goals and strategies.

The human resources department plays a key role in promoting business growth and success. Improving the operational efficiency of this team is the key to attracting and retaining high-quality human resources, taking the business further into the future. Therefore, businesses need to invest in human resources to attract, develop and retain high-quality human resources, contributing to the success and sustainable development of the business.

See more: Human resource development – developing human resources in the age of technology

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