Why have an HR function?
A well-established HR function:
• increase your productivity
• reduce your overhead
• increase the commitment of your employees to your business
• improve your employee/employer relationship
• minimizes the risk in labor relations
• help establish your trading strategy
• help put your strategy into an operational plan
• enable you to measure significant milestones in your operating plan
What will an HR function provide?
An HR feature is designed to give you some practical tools and advice, such as:
• an employment contract
• a robust recruitment process and tools
• a performance management system
• tools and support for managing performance issues
• metrics regarding your people
Human Resources will contribute to the construction of a strategic business plan integrated with solid people plans.
Following your strategic business plan is a compilation of operational goals and employee action plans with measures to monitor progress and results.
These operational goals mean you’ll have a way to measure and reward employee behavior.
As your company grows and requires more resources or changes to your organizational structure, the right HR person will be able to work with you to identify your business needs, establish a process, and guide you through the change process to achieve maximum stakeholder involvement. employees and minimize risk. This would apply both to change involving a reduction in staff and to change resulting from growth.
When should you put in an HR role?
Human resources starts from the moment you can no longer run your business by yourself and you start the planning process of how to meet the requirements of your business by recruiting staff. It is the quality and intent of your HR function that drives when you should consider a dedicated HR resource to manage the HR function.
The general rule of thumb is that when you have more than 80 full-time employees, you guarantee to have a dedicated full-time resource in your own company. Up to that number, you can outsource your function to qualified professionals who will accomplish the same goals on a part-time or contract basis.
Where would you find qualified professionals?
You can find suitable resources from finance/management consultants who offer HR resources as part of their audit services, as do some recruitment/management consultants. Lawyers can offer employment agreement templates. Some business associations offer templates and have in-house advisers to help companies with employment-related matters. Using non-HR specialists, particularly management consultants, can be an expensive option and often lack the full business focus.
Another way to get help with this role is through HR experts who have set up their own consulting firm. They offer the HR function on an hourly or monthly basis and work with you on your business as needed. This is a more holistic and cost-effective way to have a feature that can be fully integrated into your business. These people can be found on the Internet, through your local human resources institute or business association.
Who is the best consultant to choose?
The best people are those who are experienced HR consultants. They must have both the qualification and experience to understand your entire business and be able to partner with you. Look for someone who has worked in your industry sector and/or across a broad spectrum of organizations, who has a proven ability to understand business needs. Check that they have sat on management teams and can talk about sales, marketing, operations, etc., and that they can understand finance and customer service. You want someone who can think strategically but is operational. Also check that they have personal credibility. Will they do what they say they will?
Conclusion
A quality human resources function is an important asset to your business. The sooner you make sure you have such a feature, the sooner you will start to see positive results in your business. It may not require a huge financial commitment, but it does involve finding the right professional to handle that function for you.