Human Resources is the department or function responsible for managing and optimizing the workforce, including hiring, training, and personnel-related matters.
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Last Updated: January 23, 2026
Business owners need to delegate certain tasks to keep their companies running smoothly — especially if they have employees. In fact, many entrepreneurs will need to regularly delegate employee matters to the human resources (HR) department. But what, exactly, is human resources? This guide takes a quick look at the essential facts about HR, including its advantages and disadvantages.
A business’s human resources department helps that business fulfill many of its obligations and manage the relationships between the business and its employees. The functions associated with the human resources definition include:
Often, a company’s human resources department handles many tasks that are vital to the company’s survival. Some people even go to school specializing in human resources, but it’s possible for a business owner to hire someone else to handle this task if they don’t have that background.
Any business with employees needs to address all of the HR tasks covered above. But it’s not uncommon for business owners to be short on time to handle these tasks. Or they might not be familiar with all the employment laws they need to adhere to. Here are just a few laws to address:
These laws can also have different variations at the local, state, and federal levels. If a business owner tries to handle these tasks themselves, they could easily get overwhelmed and overlook critical details. It can be wise to have a separate HR manager or human resources department to take on these tasks.
Having a human resources team can also bring needed protection if the business encounters a workplace harassment complaint. If a state or federal agency receives a harassment complaint from one of a company’s employees, the agency is more likely to find the company liable if it didn’t have a separate human resources department to take complaints. Sometimes complaint resolution efforts of a human resources team can stop an employee’s state or federal harassment complaint from happening.
Hiring a human resources team or manager costs money and requires more effort when forming and managing a business. But with all the hefty fines and legal troubles an employer could incur without human resources, it’s often better to spend money and time on hiring a good team from the outset.
When an entrepreneur is ready to hire employees, an HR team can help them stay in line with their legal obligations as an employer. The presence of a human resources team can also help business owners avoid bigger legal issues if there’s a workplace dispute. Hiring this kind of team can cost extra, but it’s often worth it in the long run.
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Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. For specific questions about any of these topics, seek the counsel of a licensed professional.
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