The human resource industry was valued at around $16 billion in 2019 and is only slated to grow from there. When it comes to modern business practices, getting an HR department is fast becoming a prerequisite. 

But what does an HR department actually do? If you’re a business owner, do you really need to get one?

Those are a few common questions that we’re looking to answer today. Read on to find out more about human resources departments and how they function in today’s world of business.

What Are Human Resources?

Human resources, or HR, is a division of any business tasked with searching, finding, and training applicants while also coordinating employee benefits programs. 

It’s focused mainly on meeting the changing demands of the business landscape to bring a quality workplace experience. With employees switching their jobs all the time these days, HR is needed to keep a stable workplace.

So how does HR manifest in a typical business? What exactly does an HR department do?

What Does an HR Department Do?

HR departments are responsible for handling and helping out with an employee’s life cycle. This cycle consists of recruiting, hiring, training, and perhaps letting go of employees. 

So let’s break down each of these different responsibilities to get an idea of what an HR department does daily:


Every business needs new talent every now and then, and HR departments are responsible for understanding company needs and executing recruitment initiatives.

They analyze the job market and advertise their jobs as effectively as possible. This takes a lot of effort towards understanding the job climate. 

Once candidates are recruited, HR departments help hire the right ones and welcome them into the company.


Whether it’s arranging interviews, carrying them out, or processing applications, hiring is a big part of an HR department’s duties. As such, hiring the right candidates is a big part of their daily routine.


It’s not all about the incoming talent, as HR departments are the first places to go when processing payroll. Current employees need to be paid the right amount, and their benefits must be processed properly.

Policy Updates

Company policies often change, and it’s the HR department’s job to create effective ones while carrying them out properly. In order for a company to institute good policy, they count on HR departments quite a bit.


Maintaining HR records isn’t just something you do to abide by the law. It tracks how well your employees are performing and identifies skill excellence and gaps. 

So Do You Need an HR Department?

Depending on the size of your business, it might be getting tougher to track your employees’ success, payroll, and other intangibles. An HR department helps keep that information in order. 

It provides opportunities for your employees’ growth while helping your company become more well-equipped for the current market. HR also provides efficient hirings and a stronger workforce overall.

They can also support health and wellness needs, as HR isn’t just about hiring and payroll. No matter how you slice it, an HR department can really help your company grow while keeping employees happy.

Leverage HR Department Support Today

While some think human resources is a buzzword for business administration, it’s much more than that. Use this article to help you decide whether an HR department is right for you.

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