Human Resources (HR) is an essential function in any organization. HR professionals handle a range of responsibilities, including staffing and recruitment, compensation and benefits, employee development, safety, and dispute resolution.

While some businesses may believe they can manage these responsibilities without a dedicated HR department, the benefits of working with an HR professional far outweigh the costs. Explore the reasons why businesses must have HR professionals on their team.

1. Handles Staffing Concerns

One of the primary responsibilities of HR professionals is to manage staffing concerns. It includes developing job descriptions, sourcing candidates, interviewing, and selecting new hires. An HR professional can streamline the hiring process by ensuring job postings are targeted to the right audience and the screening process is efficient. Additionally, HR professionals can evaluate the company’s current staffing needs and develop effective strategies to address gaps.

2. Fixes Employee Compensation

HR professionals are responsible for developing and implementing compensation and benefits strategies that attract and retain top talent. This includes developing salary ranges, negotiating salaries, and administering employee benefits programs. A professional can monitor market trends and adjust compensation and benefits packages to ensure the company remains competitive. Additionally, HR professionals can ensure that compensation and benefits are administered fairly and equitably across the organization.

3. Ensures Development

Employee development is crucial in retaining top talent and improving organizational performance. HR professionals can develop and implement training and development programs that enhance employee skills and knowledge.

An HR professional can also provide coaching and mentoring to help employees reach their full potential. By investing in employee development, businesses can improve their bottom line by increasing productivity and reducing turnover.

4. Secures Safety and Health

Ensuring the safety and health of employees is a critical responsibility of any organization. HR professionals can develop and implement safety policies and procedures that comply with federal and state regulations.

Additionally, HR professionals can conduct safety training and monitor the workplace to ensure all safety standards are met. An HR professional can also manage workers’ compensation claims and ensure injured employees receive appropriate medical attention and compensation.

5. Handles Employee Disputes

Employee disputes can be time-consuming and costly for businesses. HR professionals can intervene and resolve disputes before they escalate. It includes mediating conflicts, conducting investigations, and developing policies and procedures to prevent future disputes. An HR professional can also ensure that the company remains compliant with federal and state employment laws, reducing the risk of legal disputes.

When Should Businesses Consider Outsourcing HR Personnel?

Here are some instances when outsourcing HR personnel may be a smart move:

  1. When the business is growing rapidly: Rapid growth can mean increased hiring and onboarding, changes in benefits administration, and an increase in the need for compliance. Managing these tasks in-house can be overwhelming and may distract the management from focusing on strategic initiatives. Outsourcing HR can be a time-saving and efficient solution in these scenarios. 
  1. When cost savings are a priority: Maintaining a full-time, in-house HR team can be expensive, especially for small- and medium-sized businesses. Outsourcing HR functions can be cost-effective as businesses only pay for the services they need. They can also save on overhead costs associated with additional office space, equipment, and employee benefits.
  1. When the business needs access to expertise: HR laws and regulations constantly change. It can be challenging for businesses, especially those without a dedicated HR department, to stay up-to-date. HR outsourcing companies specialize in HR management and stay abreast of the latest changes, providing businesses with the expertise they need.


Businesses must work with HR professionals to manage critical responsibilities, including staffing, compensation, development, safety, and dispute resolution. HR professionals can streamline the hiring process, ensure fair and equitable compensation and benefits, develop employee training and development programs, ensure workplace safety and health, and resolve employee disputes. While some businesses may believe they can manage these responsibilities without a dedicated HR department, the benefits of working with an HR professional far outweigh the costs.

Are you a business owner struggling to keep up with the administrative work that comes with having employees? Let SustainableHR PEO take the burden off your shoulders! Our full-service Professional Employer Organization (PEO) provides employee payroll, HR management, benefits administration, and co-employment services to help you manage and grow your team. Contact us today to learn more about how SustainableHR PEO can support your business’s growth and success!

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