In 2019, if you want your business to be a roaring success you need to look after your employees, as they really are your greatest asset.  By getting the best out of your employees, by treating them fairly and providing growth opportunities you can achieve this.  However, if you treat them unfairly or poorly they will most likely under perform and probably leave.

This is why HR is vital for every business however big or small.

What is HR you may ask?

HR is the term used to describe the management and development of employees within an organisation.

Old school, people would have said that HR was all about the hiring and firing and pay reviews. Not in 2019, HR is a positive function, including the management of recruitment, on-boarding, holiday management, sickness and absence management, payroll and benefits, training and development, safety and employment law compliance.  

HR also has a critical part to play in developing a positive business culture, employee wellbeing and personal development.

What are the four main functions of HR?

1. Recruitment and on-boarding

One of the most challenging aspects of business can be finding the right people, and if you get this process wrong is can be costly and time consuming.  Finding a great fit when it comes to talent recruitment is a vital aspect of HR the process.  Hand in hand with recruitment is the on-boarding process, its the whole experience of hiring, welcoming, orienting and engaging a new employee into your business.

If you on-board poorly this can lead to a negative impact and leave talented new employees disengaged from the word go. If you on-board well this maximises employee engagement and increases retention. 

HR also has a critical part to play in developing a positive business culture, employee wellbeing and personal development.

2. Performance management, training and development

Performance management, training and development are important part of the HR armory. Performance management will help managers offer support to employees that need it and also identify potential future superstars.

Training and personal development helps to reduce any weak links within a business.  So by investing in your employees it only strengthens your business and gives a competitive edge.

3. Legal and regulatory compliance

Any HR professional will have a full understanding of employment law and all of the regulatory requirements of a business when it comes to their people. This is a massive area and not be underestimated. An unfair dismissal claim can be an expensive mistake. Think tribunal.

It’s essential that a business has dedicated HR professional, for a small business this may mean a part-time HR manager to begin with or an outsourced HR company (such as HR Revolution, who can deal with the whole employee life-cycle). Having someone to deal with everything employee related from absence management, employee grievances, holiday entitlement, pay, to maternity and paternity policies will ensure your business is kept compliant.

4. Effective communication

Every business requires effective communication to operate. Most if not all businesses involve people and rely on a series of interactions with others. 

Good communication helps stop misunderstandings, increases employee engagement and forms the basis for better client relationships and helps build a positive culture.

HR – why is it so important?

Unfortunately in small businesses HR is sometimes overlooked and many business owners underestimate that managing employees takes time and specific skills.  

But as a business grown, owners often just don’t have the time to deal with the normal day-to-day people management and recruitment, without HR and a talented, focused team your business can flounder.

HR encompasses all aspects of people management, communication and is essential in building a positive culture. By getting your HR right you are half way to making your business dreams a reality.

If you consider the consequences of poor HR, employees not feeling supported, not being given opportunities to progress and succeed, working long hours, and so on, their motivation to perform is affected. If you have no HR or it is ineffective, ultimately it will effect your bottom line.

If you would like to discuss how HR Revolution can support your HR and Talent needs please do get in touch:+44 203 538 5311 or email: or visit where our expert CIPD HR professionals are waiting to help you with any questions you may have.