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chelle21689's avatar

Is HR valuable to a company?

Asked by chelle21689 (5085 points ) January 19th, 2014 from iPhone

Update on the new HR coordinator job, I like the organization and my job (even though I do grunt work sometimes like scanning and copying lol) I still have in the back on my mind that one day it’d be nice to start something of my own like a staffing agency.

I asked someone if me building experience in HR learning about laws and interviewing candidates for positions would help contribute to starting a staffing agency one day (along with trying to build connections).

The answer I had wasn’t good. He said HR is usually the first to get cut, is seen as an expense, is often outsourced, and not very valuable. Is this true? If so, that sucks for me!

P.S my job mainly consists of screening resumes, tracking them, interviewing, onboarding, and orientations, etc. not exactly recruiting or head hunter type stuff

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8 Answers

BosM's avatar

If your goal is to one day have a staffing company the work you are doing is very valuable to help you achieve that. The person you spoke to had a “glass half empty” perspective on HR. HR is important, very many reasons – recruitment, retention, benefit administration, compensation, management development, etc.

Employees are often viewed as an organizations largest and most important resource and many companies are hiring what they refer to as Chief People Officer. HR is still important.

JLeslie's avatar

HR is seen as an expense, because they don’t directly produce revenue, and often HR is cut, but usually it is cut when other parts of the business are being cut also.

Doesn’t matter, HR also can move from one industry to another. My husband was in technology when tech was hot in the 90’s and then when that started to fizzle he moved to another industry, and now he is working for retail. He specialized in compensation and benefits, one of the better paid of the HR catagories. He has saved companies he has worked for millions of dollars, he works directly with finance and C-level at the level he is at now. If you love HR keep on keeping on. Well run businesses understand the value and the importance of HR. Do you speak two languages? I remember your family is from Asia? That might be a huge asset for you. Multicultural experience in HR can get you higher pay. Director level HR makes usually between $50k and $150k, not bad. VP levels $100k to $300k. Then up from there for higher positions. Don’t let anyone tell you HR is a bad career path if you love it.

The experience you are getting working for companies is important for your endngoal of owning a staffing agency. Your knowledge of what it is like working inside of companies will help you relate to staffing needs and how HR thinks.

It sounds like you are doing great! Don’t let negative voices take away your enthusiasm, esoecially if the person you are talking to is not HR, or is in HR but hasn’t moved up the ladder. My husband has really enjoyed working in HR.

elbanditoroso's avatar

Truly depends on the company and the role they play. In a small company where HR is sort of a necessary evil, and they don’t have a role in selecting and grooming people, it’s not much of a benefit.

In a large company where they manage the hiring process and do a lot of quality control on incoming candidates, and vet the process, it’s very beneficial. (I’ve worked for both types of companies, and the difference is like night and day).

If HR are allowed to do their hob well, it can be a huge asset.

glacial's avatar

I think it’s essential if the company is very large. But if the company is small, it is pointless.

tobycrabtree's avatar

For companies that consider employees their most valuable assets, human resources has extreme value. In the most general sense, HR serves to motivate employees to top performance and maintain an organizational culture of high morale.

chelle21689's avatar

Thanks for the responses. I see myself in HR long term but it’s just a nice thought to own something my own one day as I have always liked. It’s either that or the grocery my parents own if it’s not given to someone else lol.

I would hate to see it go down the hands of someone not family or even worse be shut down. But it’s nice to do something yourself, create it, and grow it

zenvelo's avatar

@chelle21689 Internal HR is often consider a drag on a company because it is part of overhead, and is generally an allocated expense to the revenue producing divisions. But that’s why your idea of a staffing agency is a good one. A lot of companies view outsourcing HR activities to be much better than having it in house. If you learn all about HR from top to bottom, you can go sell your services to a number of companies, and eventually have your own successful business.

It will take sometime, but start now and get to know the HR business inside and out, from laws to employee training programs.

LostInParadise's avatar

HR skills, like teaching skills, depend to an extent on understanding people. It is difficult to measure these skills, but that does not mean they are unimportant. A job applicant can do a great job at a technical interview, but if the person’s personality does not mesh with fellow workers then hiring him/her could be a disaster. You need some understanding of how the company is run, but you also need some inherent understanding of people, which I presume that you have. Like teaching, your skills will improve with experience.

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