HR occupies an odd position in the modern workplace. Many consider it essential. But it’s often one of the last departments a company implements. If your business needs one, check out this guide!
Do you really need one?
A lot of small businesses don’t have HR departments. Some say that this is a big mistake. But not every business is in dire need of one. A medium-sized business I once worked for the HR tasks covered by the financial controller. An HR department is going to cost you time and money that you may not have. Regardless, you need someone in charge of HR duties. For a lot of businesses, the financial controller being in charge of it makes sense. If your business is growing to about a hundred employees, though, then you’ll want to consider a more involved HR process.
Make sure you know what HR will cover
You’re going to need to have documents and software ready for HR professionals to use. That means you need to know precisely what it is HR are going to cover! HR are going to be dealing heavily in employment law and payroll. They’ll also deal with safety procedures, sick leave, schedules, and holidays. They need access to all the relevant data.
Reviewing the law
The “employment law” thing I made a passing reference to just now? That whole thing is really important. It’s absolutely vital that your HR department is fully in the know about the intricacies of these laws. Dealing with any issues that arise means that they’re going to need quite a lot of authority within the office. If you want to make sure your HR department will cover everything it needs to, then you need to do some thorough research. A lot of business owners choose to consult with employment law solicitors during this process.
Getting the right people
Maybe you only need one HR employee. Maybe you need two or three. Whatever the case, you’ll probably want to start by hiring the head of the department as soon as possible. This is going to make the process much easier. Once you’ve got the basics I’ve listed down, it’s time to make your first hire. This employee will help you build your department. They’ll help you determine how much further you need to go in its development. You don’t want to hire too many HR employees to begin with. After all, they’ve going to need to get a feel for the culture of the office before they make any big decisions!
Determining a budget
Of course, before you do any of the above, you’re probably going to want to figure out a budget for the department. The software and other resources necessary could end up being quite costly. Then you’ve also got to account for the salary of your HR head. This will depend on the size of your business and of the department you’ll be building. The average salary in such a position ranges from £35,000 to £65,000. Remember that the more HR employees you employ, the more you’ll have to pay the head of the department!
This article was provided by ellie jo