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Why Businesses Benefit from Human Resource Development

Updated: Jun 25

An effective HR team uses Human Resource Development (HRD) to create an engaged and motivated workforce because it benefits the employees and improves business performance. We’ll explore a little about what it is and the benefits in this article.

What Is Human Resource Development?


HRD is a program established by HR to help each employee develop their skills, knowledge and abilities for the purpose of increasing the business’ productivity and effectiveness. In practical terms, HRD helps businesses develop their workforce through employee training and career development in order to guide them on a path of career advancement suited to their unique abilities and goals.


HRD programs vary from business to business but common opportunities and benefits offered to employees are:

  • Formal training as part of the onboarding process

  • Mentoring sessions with older or more experienced employees

  • Coaching by managers

  • Collaborating with colleagues

  • Performance management and development

  • Tuition assistance for college courses or training programs

  • In-house training provided by staff or an independent educator

  • Succession planning – where there is always an employee prepared to step into a newly opened position

You can imagine how these pieces would come together to create a positive situation for both the employee and employer. When an employee is hired, they begin a formal and thorough training program that sets them up for success. This is followed by mentoring, coaching and collaboration opportunities on a regular basis. A mentor and coach can help uncover an employee’s unique interests, abilities and potential. The knowledge gained through these sessions can lead to further mentorship and training programs or tuition help for education outside the organization that can prepare them for leadership roles or other promotions within the organization. This way, when a suitable job opens up, they are ready to step into the role.


What are the benefits of Human Resource Development?


There are several benefits to HRD, for both employees and employers.


Happier workforce


Many employees join a company or organization with dreams of climbing the ladder or working their way into their dream position. When a business invests in HRD, employees are given the opportunity and support they need to develop their skills, which makes them feel fulfilled.


Reduced employee turnover


Businesses that don’t invest in their employees and that don’t favor internal promotions, are much more likely to have high turnover. When a business is focused on Human Resource Development, they are reducing employee turnover as they help employees get to where they want to be in their careers.


Increased productivity


With succession planning in place, a company never has to suffer from decreased productivity due to a vacant job opening. As one employee moves to a new position, another is ready to fill their place. In addition, when employees know they have good opportunities for promotion, they are more likely to work hard in their current position to show that they are worthy of that promotion.


Partnering with Makai HR


Need HR support for your small businesses? We’ve got you covered through HR outsourcing! When you partner with Makai HR you can get on with the business you are trying to grow while we take care of your employee needs from payroll to taxes, health insurance/benefits and worker’s compensation. You also gain peace of mind that you are compliant with all of Hawaii’s employer laws (if you’ve ever looked you know that the list is very long). When choosing a PEO to partner with, there are many things to consider including cost, services and technology solutions.


With the cost of doing business in Hawaii at record highs, we know how important it is to keep labor costs in line with revenue. Our plans are priced competitively and include value-added services like time-in/time-out systems. Our three tiers of PEO service plans are tailored to the size of your business and specific needs. We offer a 100% paperless solution which means that your employees can manage their needs through a computer, tablet or phone. We can truly improve your employees’ work benefits while freeing you up to run your business.


What are you waiting for? Companies that partner with a PEO benefit from 7-9% faster growth, 10-14% lower employee turnover; and they are 50% less likely to go out of business. Contact us today to get started!

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