According to the analyzed literature and research, the main focus of today's business world is human resources, and their knowledge, skills and abilities are the main factors in creating new company value and they represent a key segment of the success of the entire organization. In order for a company to operate successfully, it is necessary to properly select a quality, efficient and dedicated employees, adequately manage it and motivate them to achieve results within the organizational. In the business of small and medium enterprises, the exceptional importance of developing a special department of human resources and the separation of the function of human resources management from other business functions within an individual company, has been determined. Considering that human resource management is a key factor in the success of the company, it is important to relieve top management and assign the human resources function to a person who has all the necessary knowledge, skills and competencies adequate to perform this important role. This greatly contributes to easier access to employees, greater connection, communication becomes easier, it provides easier insight into the work of employees, as well as monitoring their work performance. Summarizing the results of the research, it is worth to point out the main characteristics of small and medium enterprises, namely flexibility, informality, intimate environment, quick and easy communication, easier delegation of tasks and the ability to respond quickly to market needs. As nothing is perfect in the world, small and medium enterprises in their business face numerous limitations that hinder their development, such as insufficient and limited financial resources, labor shortages and insufficiently developed managerial knowledge. Therefore, it is crucial to work and invest in people and improve their knowledge and skills, creating a suitable motivating work environment that encourages employees to achieve greater efficiency and effectiveness in terms of business operations. This is confirmed by the surveyed employees who especially emphasize the work environment and work atmosphere, as well as participation in various educational programs as the main motivating factors that encourage them to achieve better and more successful results. As the main conclusion, it is worth emphasizing the exceptional need of the company to invest in employees, their growth, development and proper orientation towards achieving business results and achieving organizational goals, because the development of te entire company is based on the development of the employees. It is necessary to strive to improve the existing knowledge and skills of employees and move towards new, creative and innovative ventures that will bring new challenges and business successes. Human resources are the main source of competitive advantage of the company and as such require proper guidance and guidance towards personal and professional growth and development, as well as the achievement of organizational goals. The future of the company lies in quality, dedicated and satisfied staff who direct all their efforts to perform business tasks as efficiently as possible. Therefore, the main task of every company is to create a sense of belonging among employees and enable them to feel satisfied and motivated within the company.