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Do you know the importance of the Personnel Department for your Company?

For both medium and large companies, the Personnel Department does much more than simply process employee payrolls. The DP plays an essential role in developing a company’s strategy, as well as handling an organization’s employee-centered activities.
See below a little more about the importance and tasks of the personnel department sector, and why it is so important for the company to be successful in its activity.

What are the DP’s obligations?
The personnel department (DP) is the sector responsible for managing employees. This includes bureaucratic control related to employees, such as control of payroll, vacations, labor benefits, certificates, attendance, punctuality, etc. Another important activity of the DP is ensuring compliance with labor laws.
Finally, the DP manages the staff from admission to dismissal, including remuneration.
Other important activities carried out by the DP consist of exploring turnover rates, controlling, respectively, the entry and exit of employees, absences and absences of employees. Check below some strategic activities included in the sector:

  • Attract and retain the best talent: The best companies are those with the best teams, with the best human talent. It’s the DP’s job to find them, inside or outside the organization. This requires a carefully planned process, as well as defining strategies to stimulate employee motivation and well-being.
  • Development of a positive work climate: The work climate is one of the most important factors in the company, as it significantly influences the well-being and productivity of workers. Experts agree that a positive work climate increases productivity, reduces absenteeism, increases motivation and reinforces commitment.
  • Training and development of personnel: The personnel department must also implement training schemes to ensure the growth of each employee and the development of key skills for their career and for the future of the company. This is not only a way to attract and retain talent, but also to maximize the potential of your human capital.
  • Improve productivity: The personnel department is also responsible for managing the productivity and performance of all sectors of the company. The sector is also responsible for detecting opportunities for improvement and planning their implementation.
  • Employee Performance Assessment: Assessing the performance of each employee and their commitment to the company is something that should be done regularly. Specific and measurable objectives for each member of the organization and a pre-established evaluation system are essential for this process. There are employee performance evaluation software, and with the use of a cloud platform, a qualitative and quantitative evaluation of performance is possible.
  • Ensuring compliance with labor laws: There are many labor laws and regulations that the company must comply with with its employees, and this is handled by the DP. Vacations, sick leave, maternity/paternity leave… These are all regulated and must be strictly enforced. Companies that neglect this sector are prone to serious legal problems.
  • Occupational health and safety: HR plays a vital role in creating and implementing occupational health and safety policies. This can be a particularly delicate task in many sectors as we are dealing with people’s health and safety.

The relevance of the DP to the company’s success
People management has played a very important role in resolving conflicts of interest between employees and employers, in a scientific and sophisticated way, and in creating a harmonious environment, where production can be achieved at an increasing pace.
The importance of DP has increased with the advancement and application of technology. People management emphasizes the role of teams in work organization. Psychology, sociology and other related behavioral sciences help manage the workforce to get the desired results and effectively.
The personnel department helps other departments to contribute to organizational goals. It is the personnel department that is in charge of the responsibility for recruiting, selecting, placing and monitoring workers in their respective departments.
However, if the personnel department is not careful in selecting and inducing the right people to the right jobs, not only will the other departments not be as productive as expected, but this will also lead to a waste of resources.
Ultimately, the effectiveness of each department depends on how efficiently the personnel department works. This is because if the personnel department selects the right people and maintains the appropriate specialized follow-up, then all departments at the level of effective organization result in the company’s success.

With over 30 years of experience, Conmax is a specialist and market reference in Personnel Department and Human Resources Management. Click here and meet Conmax.

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