Labor is a very important resource asset for the business world or a company, because it is one of the means of production or driving force of a business run by the company.
However, a large element of cost and risk is provided by the labor sector, so that when business performance declines, the costs of this sector are not easy to reduce unless you take action to terminate employment relations. Layoffs are not a cheap alternative, because the social impacts caused are quite expensive. Therefore, Human Resources management needs to be the company’s main concern.