It's good to hash passwords kept in your database because they can't be reversed. People have a tendency to use the same password on different systems, increasing the risk that an attacker can learn a password from one system and try it on another system. You're protecting your users when you hash their passwords in case your system is compromised.
Technically, your function should be named "HashPassword" rather than "EncryptPassword" because encryption and hashing are not the same thing. Encryption is reversible-- you can decrypt and get back your original content. Hashing is "one way"-- it's like summing up a list of numbers. You can verify that the numbers haven't changed by summing them up again and comparing, but you can't generate the list of numbers from only the sum. Hashes work in much the same way.
Your best option moving forward is to continue working with hashes and to create processes and policies that don't require knowing a user's password. On login, you hash the submitted password and compare hashes instead of directly comparing passwords. If someone can't remember their password, you e-mail them a token that lets them reset their password rather than e-mailing them their password.