When your company is just starting out, you most likely take care of all the responsibilities and paperwork for human resources, payroll and management. However, as your small business grows, you'll have to adopt more tasks. While it might seem easy to delegate some duties to your competent staff, you shouldn't break up HR. With too many people handling recruitment and company goals, your business will lose some of its efficiency, which is why should hire an HR director to take care of those responsibilities.
Why should you implement an HR director?
While small businesses tend not to have HR departments, that's a mistake. Compared to larger corporations, companies with fewer employees are more likely to need the extra help, Slate explained. Because you'll have other responsibilities as a small business owner, you might not be able to keep up with the rules and regulations for companies put forth by federal and state governments. On the other hand, it's the HR director's job to know what you have to do to comply with any necessary legislation.
Having an HR department in place will also help as your business grows in size. The director ensures that you have a diverse group of people working at your company to allow for a variety of ideas. When employees from different backgrounds come together, you'll have a more productive and creative work environment.
"There are people who recognize early on, 'We're going to grow into a big company and we're going to lay the foundations of a big company early on,' and those people do bring in professional HR," Diane Burton, associate professor of human resource studies at Cornell University, told the source. "But then there are lots of people who think, 'We don't need it until we get large.' What we find is that it's very harmful, because if you have a set of patterns and styles and way of managing that all the people have grown up with, when you try to change that, the organization is resistant."
How do you create a successful HR department?
You can't have an efficient department without a knowledgeable leader, so the first step is to start your search for an experienced director. Don't hire for the company you have, but recruit for the one you're working toward, Inc. suggested. You want someone who will be able to help grow the company and will know what to do once it increases in size. If you hire someone without the experience of a larger business, you'll be looking for someone new. Unfortunately, a vastly experienced person will most likely require a higher salary, so you'll have to work it into your financial plan. You'll also need to determine what duties you need filled and then you should create a job description that exemplifies that position. Make sure you include behavioral traits that will ensure you recruit someone who fits in with the company culture.
Once you've made the decision to implement an HR department and hired its director, you'll have to establish its goals and responsibilities. You want to create a business partner model, Entrepreneur explained. This means that HR employees will work with the company's executives and other senior workers to make a plan for goals that will align with the business's overall mission. You don't want your HR department to act on its own. It needs input from employees on the floor to construct policies that will protect and help the company's staff.
While it may not seem like you need an HR department to run your small business, having one in place will be useful to both you and your employees.