Arguably, an organization’s most important tasks are managing its most valuable asset—its people. HR also plays a key leadership role in nearly all facets of the workplace environment, from designing and administering benefits programs, to conducting attitude surveys, to drafting and enforcing employment policies. HR is on the frontlines in managing adversarial employment conditions such as work–life conflicts, mediations, terminations, and layoffs. It is on the scene when an employee joins and leaves, and all along the way.

Researchers have been examining the effects of a high-performance work system (HPWS), a group of human resources practices that some organizations have been implementing. These practices can include those that enhance motivation, such as profit sharing programs and other reward systems, as well as practices that improve skills, such as training and development. HPWS may increase employee engagement. Leadership by HR begins with informing employees about HR practices and explaining the implications of decisions that might be made around these practices.

When a company successfully communicates how the whole system of HR practices has been developed and what function this system serves, employees feel they can control and manage what they get out of work. The role of HR is increasing in organizations worldwide.