What is the meaning of the prefix N in T-SQL statements and when should I use it?

I have seen prefix N in some insert T-SQL queries. Many people have used N before inserting the value in a table.

I searched, but I was not able to understand what is the purpose of including the N before inserting any strings into the table.

INSERT INTO Personnel.Employees
VALUES(N'29730', N'Philippe', N'Horsford', 20.05, 1),

What purpose does this ‘N’ prefix serve, and when should it be used?