Savvy business owners know how important it is to stay on top of the rules and regulations regarding employment and labor laws. Companies can find themselves in trouble by not staying abreast of current laws and can find themselves suddenly facing legal issues and court time from lawsuits brought on by their employees. The issues are real and complicated.
Here are some areas employers should be aware of if they decide to forego an HR department or if their company’s size does not warrant a full-time HR administrator.
Understanding Human Resource Department’s Role
The role of a HR department is to effectively manage your employees within your company. They are responsible for defining job duties, recruiting employees, hiring staff, and overseeing employee benefits and benefit administration. They serve as your frontline and intermediary with your employees. Their role can be as defined or as loosely based as necessary to carry out your company’s objectives.
Avoiding Trouble
There can be pitfalls to not having an HR department. There is a risk of communication breakdown, especially from smaller companies that hope to have an open door policy. There can be deadlines missed with benefit applications and legal issues regarding terminations and unemployment compensation that pop up unexpectedly. Your goal as a businessperson is to fully embrace and develop your company to its full potential.
Hiring Liabilities
A key role for a HR department is to actively recruit new employees. A competent HR department fully understands each role within the company and thoroughly reviews each application to find the best pool of interview candidates. A business faces a severe liability when attempting to navigate and assume every role within a company, and this includes acting as an HR manager.
Putting your full resources to work in hiring and interviewing potential candidates can take away from your core goals. An effective HR manager analyzes and evaluates each potential candidate to ascertain their ability to fulfill your company’s key strategic goals and objectives.
Sending a Consistent Message
Consistency can make or break company morale. There can be an inherent danger of sending mixed messages to employees. This is why it is so important for a company to have a comprehensive set of guidelines and a mission statement. This applies to a small business. A consistent message lessens the chance for confusion and derision amongst the employees. Having a skillful HR department in place imparts the same message and reaffirms company policies and procedures.
Rewarding Employees
An HR department can track and note employee performance and recognize employees for their service. This goes hand-in-hand with promoting a positive work environment. Do not shortchange your business by ignoring the value of a compensation package. This can include the following quarterly salary and bonus review, safety awards, and promotions. Recognizing and rewarding employees can stabilize and increase your employee retention rate and improve your company’s overall performance.
Keeping Your Eye on the Prize
Your goal is to create a positive work environment that promotes your business and contributes to your company’s growth. Whether you have an HR department or not, you need to be aware of the pitfalls and advantages and then decide where to put your company’s resources to maximize your potential. If you need assistance in this area, Linton & Associates, LLC can help with a full range of HR consulting services and a team of seasoned professionals who know the ins and outs of the HR department.
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