Why HR Matters More Than You Think

Let's be honest. HR has an image problem.

Ask people what HR does, and you'll get answers like “they handle paperwork” or “they plan birthday parties” or, my personal favourite, “they're the ones who send those long emails nobody reads.” There's this widespread idea that HR is a support function that doesn't really do much. That it's not “real work.”

Having worked with hundreds of companies across industries, I can tell you: the ones with strong HR departments are almost always the ones that run better. And the ones that treat HR as an afterthought? They're usually the ones constantly dealing with turnover, culture problems, and internal chaos they can't figure out.

What Good HR Actually Does

The problem with HR's reputation is that most of what good HR does is invisible. When it's working, nobody notices. People only think about HR when something goes wrong. That's a bit like saying the foundation of a building doesn't matter because you can't see it.

Here's what a good HR team is actually doing every day:

• They make sure new people actually succeed. Onboarding, training plans, setting expectations, making sure someone feels welcome and knows what they're supposed to be doing in week one. Without HR driving this, new employees are left to figure it out on their own. Most don't last.
• They keep your good people from leaving. Retention doesn't happen by accident. Someone has to pay attention to employee satisfaction, flag burnout before it turns into resignation, resolve conflicts that would otherwise poison a team. Good HR does all of this quietly and consistently.
• They protect the company. Employment law, compliance, workplace safety, harassment policies. These aren't exciting topics, but getting them wrong costs companies millions. HR is the reason most companies don't end up in legal trouble for things they didn't even know were risks.
• They shape culture. And I don't mean hanging motivational posters. I mean the actual day-to-day experience of working at a company. The onboarding that makes new hires feel welcome. The feedback processes that help people grow. The policies that make it possible for people to do their best work. That's culture, and it doesn't build itself.

The Cost of Getting It Wrong

I've seen what happens when companies underinvest in HR. It's not always dramatic. It's usually a slow deterioration.

People start leaving and nobody understands why. New employees feel lost because onboarding is a mess. Managers make it up as they go because there's no framework. Internal conflicts fester because nobody knows how to address them. Performance conversations don't happen because there's no structure for them.

Then one day the CEO looks around and wonders why the company feels different. Why morale is low. Why the good people keep leaving. And usually the answer is that nobody was taking care of the stuff that HR is supposed to take care of.

Good HRs Are Rare (and Incredibly Valuable)

Part of the problem is that “HR” covers such a wide range of work. Payroll, employee relations, learning and development, compliance, performance management, culture. At small companies, one person might be doing all of it. That's an absurd amount of responsibility, and it takes a genuinely talented person to do it well.

The best HR professionals I've worked with are some of the sharpest people in the building. They understand the business. They understand people. They can have a difficult conversation with a senior leader in the morning and a compassionate one with a struggling employee in the afternoon. They make decisions that affect every single person in the organisation, every single day.

If that sounds like “not much work,” I'd love to see someone try it for a month.

What Companies Should Do Differently

If you're running a company or leading a team, here's my honest advice:

• Hire HR early. Don't wait until you have 50 people and everything is on fire. A good HR person at 15-20 employees will save you from problems you don't even know are coming.
• Give them a seat at the table. HR should be part of strategic conversations, not just called in when there's a crisis. They see things that leadership misses. They know what's actually happening on the ground.
• Invest in good HR people. Like any function, you get what you pay for. A talented HR lead who genuinely understands people and business will pay for themselves ten times over in lower turnover, stronger teams, and a healthier workplace.
• Respect the work. This one is free. Just acknowledge that HR is doing hard, important work. It goes a long way.

The Bottom Line

Every department in a company depends on having the right people, in the right roles, feeling motivated and supported. That doesn't happen on its own. Someone has to build and maintain the systems that make it possible. That someone is HR.

Next time you're tempted to think HR “doesn't do much,” take a closer look at the companies that invest in it versus the ones that don't. The difference is usually obvious.