Impact of HR

The human resource department is an integral part of any organization irrespective; of the industry or size. The HR department is responsible to set best practices and positive company culture. Positive company culture will ensure higher productivity, retention rate, and customer satisfaction. It is a very long, complex, and continuous task to set the company culture. Because; company culture plays a crucial role in any organization’s brand image. Company culture plays a vital role in the success or failure of any organization. In this blog, we will study the impact of human resources on the company culture.  

What is the impact of HR on the company culture? 

The company culture reflects on each department and every management level. Company culture is visible in day-to-day activities in which they complete every task. It also reflects how the higher management interacts with the workforce and how the colleagues interact with their teams.  The higher management can choose what type of work culture they want to have in their organization. They can choose to have a goal or performance or employee or client-oriented company culture based on their needs. The business HR leaders can consider the following aspects while setting the company culture: 

  • Various factors affect the company culture.  
  • The higher management and the HR leaders have a tremendous impact on the company culture.  
  • They should measure the impact of company culture on the work.  

Following are the top five ways human resources impact the company culture: 

Employee compensation: 

Employee compensation plays a vital role in the company culture of any organization. The human resource department is responsible for compensating the employees based on their skills and experience. If the organization does not have a competitive pay scale, it will have a tremendous impact on your work culture. If your business pays less than what the market offers it will impact your business in negative ways. For instance, your business will have lower productivity, a higher attrition rate, and a negative brand image if you do not have a competitive pay scale.  

On the contrary, when your organization has an efficient and competitive pay scale in the market. You will have the best talent in the market who are highly motivated and satisfied to work with your organization. Additionally, it will have a positive impact on your company culture because of your highly motivated workforce. The best HR software will ensure that your employees get competitive competition as per the market demands.  

Training and development: 

One of the best ways to make the employees adapt to company culture is to conduct continuous training. Business HR leaders can emphasize employee code of conduct to ensure they behave professionally at the workplace. Organizations can have an internal training team or have external vendors conduct the training modules.  

The top HR software will have LMS integrated to conduct the training efficiently. Organizations can design a training module that employees can complete at their own pace from anywhere. The company culture training program can revolve around company vision, ethics, and work-appropriate behavior.  

Relationship between company and employers: 

The human resource department is the bridge between the employees and the higher management. The HR department is responsible for recruitment, onboarding, development, and performance management. As a result, the human resource department has had a tremendous impact on the employee since the interview rounds.  

The most effective way to enhance the relationship between the employer and the employee is to; have transparent communication and set clear expectations. Additionally, they need to have an efficient conflict resolution team to resolve employee grievances.  The HR software will help the business leaders to monitor the relationship between the employers and employees. This software will help collect employee feedback to understand the challenges and changes they need in the company culture. It is also an effective way to strengthen the relationship between the employers and the employees.  

Performance management: 

Performance management helps you to set the best company culture that is goal-oriented. Efficient performance management will ensure that your team does smart work and not hard work. The HR leaders can set the key performance indicators and monitor the performance based on that. Rewarding the top performers will help to motivate the bottom line of your organization.  

Business leaders: 

Business leaders play a crucial role in setting the right company culture to yield higher productivity. The business HR leaders are responsible for setting the right practices at the workplace to complete a task or project. Additionally, they need to set guidelines for employee behavior and monitor them to ensure adherence to the company culture.  

The business HR leaders can have an open and clear conversation with the employees to have transparency. The leaders can strengthen their relationship by providing constructive criticism to develop personally and professionally. Furthermore, they can recognize and reward the top performers to appreciate their efforts.  


Company culture plays a vital role in the success or failure of any organization. Hence, it is crucial to have a positive company culture to ensure business growth and expansion. The human resource department plays a crucial role in setting the best company culture to achieve goals faster.

By Anurag Rathod

Anurag Rathod is an Editor of, who is passionate for app-based startup solutions and on-demand business ideas. He believes in spreading tech trends. He is an avid reader and loves thinking out of the box to promote new technologies.