The importance of Human Resources in a business

In addition to serving as a link between management and employees, it prevents the organization from violating labor laws.

According to the salary and benefits software company Zenefits, payroll is a business’s largest expense, making up 68% of operational costs on average. Therefore, the work done by human resources personnel is important, as they ensure that this investment in salaries pays off for the business.

“A human resources department is the link between management and employees,” said Isabel Soto, president of the Puerto Rico Chapter of the Society for Human Resource Management (SHRM). “We bring employee concerns to management and try to communicate to employees what is expected of them at work” explains Soto

Depending on the size of the organization, a Human Resources Department can have anywhere from a single employee to more than ten employees. The tasks performed by these professionals include, but are not limited to:

• recruiting new staff
• training employees
• creating and coordinating salary scales and fringe benefits
• implementing initiatives to attract and retain talent
• handling performance evaluations
• managing labor relations
• promoting a good work environment, and
• preventing occupational risks

“In essence, the Human Resources staff looks after employees’ well-being and makes sure that company policies and processes, as well as state and federal labor laws, are followed,” Soto added.

In Soto’s opinion, it is important that small and medium-sized businesses (SMEs) have at least one person in charge of Human Resources tasks. This person must pay attention to the work environment, observe how employees perform their duties, and prevent the organization from incurring violations of labor laws and regulations that may result in fines or lawsuits.

“A Human Resources Department also ensures that the work environment is favorable, so employees feel comfortable doing their jobs,” Soto stated.

One of the advantages of having human resources personnel available is that employees  can reach out to them to deal with workplace concerns.

Following is a list of the strategies for SMEs without a Human Resources Department: 

1. Hire a consultant: For an agreed-upon monetary amount, a Human Resources Consultant can develop employee manuals and write policies and processes. Also, when asked to, they can address other specific situations that arise in the workplace.
2. Get advice from a labor attorney: Seek the advice of a labor lawyer whenever legal situations arise.
3. Join professional associations: “By paying for a SHRM membership, you can have access to content from Puerto Rico and the United States on labor laws and general Human Resources issues,” Soto explained.

Following these tips will help your employees feel comfortable in their jobs and help you, as a business owner, protect your company from legal issues.

This commercial content was written and/or produced by the BrandStudio team for Banco Popular de Puerto Rico (“Popular”).

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