On-site human resources departments affect organizations in many and varied ways. Some HR duties might be absorbed by the business owner or manager, such as administering payroll, employment taxes and employees' personal time off. Frequently, however, business executives are unable to find the time needed to adequately perform these duties. The many imperatives enacted by a fully functioning HR department can have numerous beneficial effect and result in the successful growth of your organization.


New businesses generally possess a strategic plan that is followed toward the goal of success. The people employed are integral pieces of such a plan. An HR department at the forefront your strategic plan manages your human resources toward achieving each facet of your plan. The department is qualified to deal swiftly and effectively with business downturns requiring layoffs or the outsourcing of jobs and can do so with a minimum negative impact to your business.


A human resources department can save your organization time that could be spent on increasing your bottom line. HR professionals recruit, interview and properly hire employees. These tasks are not as straightforward as might be expected; imprudently handled, they could cost your business a great deal in value, monetary outlay and reputation. Your HR department also oversees employees' benefits and takes care of potentially costly workers' compensation issues.

Building Your Team

Your human resources department is integral to building a fully functioning, happy workforce. This involves timely orientation and job training, regular performance appraisals and providing for employee involvement, including developing job perks and opportunities for team social gatherings. In handling this, HR frees you to engage with your customers, market your business and perform the other myriad duties of a business owner or manager. This affects your organization by increasing your profitability and business value.

Risk Management

One of the chief considerations of any business with employees is protecting itself from exorbitant legal fees brought on by employee lawsuits. The business and work environment is awash with potential legal entanglements resulting from business owners who are unfamiliar with employment law. In situations that require court proceedings, the courts lean in favor of employees, which could mean financial harm to your business. Your HR department can guide your organization through the many laws governing employment, minimizing your risk.