The human resources department is the motherboard of the company. They handle tasks geared towards managing employee engagement and productivity.
As a business owner, you likely have countless open tasks at any given moment. Taking care of your employees is one thing you can’t afford to fall behind on.
Your employees are one of the most important assets to your business. HR is a key player in supporting your team throughout their work life cycle so they can thrive in your company.
What does the HR department do? When should HR get involved? Everyone knows that HR is essential, but do you know why?
HR is an acronym for human resources. In the simplest terms, the human resources department is a group of employees that are meant to be a resource for everyone employed by the company.
They are responsible for all things work-related, such as onboardingnew hires, organizing employee benefits, and dealing with compliance issues. Their role in the company may sound insignificant. However, you may be surprised to learn just how many factors HR has its hands in.
Every business, no matter what industry or what size, needs an HR professional. That could be a team of workers, or it may be an individual that’s in a leadership role. Whatever it looks like for your company, a person or department needs to be in charge of all things relating to human resources.
HR is centered around supporting employees in the best way possible. They’re responsible for managing the employee life cycle, which covers a wide range of strategic roles to maintain the structure of the business.
Most business leaders understand the importance of keeping employees happy and engaged in their work. There are plenty of studies to confirm the amount of time, energy, and money that is lost with disengaged employees.
To be proactive and increase retention, employers should focus on nurturing the employee life cycle. It’s not a one-time endeavor — an ongoing effort to design an employee experience that leads to longevity, high-level engagement, and overall success.
The employee life cycle (ELC) is broken down into several categories to organize and visualize how an employee engages with the business. These include:
A skilled human resources department handles various tasks to support the employee life cycle and promote engagement and productivity.
The HR department is responsible for attracting prospective employees and recruiting for new positions. That involves more than simply creating an ad; they should be able to analyze the market, consult stakeholders, and manage the payroll budget.
Proper recruiting is a crucial task that can either revitalize the organization with the right candidate or upend operations with a toxic employee.
The HR person or department is in charge of handling interviews, coordinating hiring efforts, and onboardingnew hires. They carefully review all the paperwork to make sure everything is filled out correctly and educate new employees on the different policies within that company.
When new hires start their first day, they’re immersed in the company culture. While human resources teams cannot control the work environment entirely, it is their responsibility to do what they can to create a positive culture.
Employee well-being is the primary responsibility of HR teams, and most duties contribute to that goal in some capacity. A supportive, warm, and engaging company culture is one area that improves employees’ daily and overall work experience.
Human resources oversees the payroll, which includes counting hours, calculating taxes, verifying benefits, paying bonuses and raises, and reimbursing expenses.
Employees are counting on their money, so HR must keep track of bank holidays and important deadlines that could affect payday.
This is what a lot of people think of when discussing HR — where to go when being reprimanded.
This is an important function because when disciplinary action is handled improperly, it could cost the business a valuable employee, litigation, or even a bad reputation.
However, when handled correctly, disciplinary action could be a good teachable moment for employees, resulting in greater success.
In most cases, policies should be updated or at least examined each year as the company continues to evolve.
HR is in charge of making company-wide announcements for official policy updates and suggesting changes if a policy no longer serves the organization.
Sometimes a policy needs to be changed due to an occurrence. In that case, human resources should always be included and consulted regarding those decisions.
Business owners are legally required to maintain specific records for all their employees. HR must stay up to date on compliance and the latest regulations in their market.
These documents contain sensitive information and personal data that human resources need to keep confidential. This also helps HR identify skill gaps during the hiring process and analyze demographics.
Recognizing employees that are performing well is essential — not just because people need recognition, but because it motivates everyone to achieve more when they know it’s valued.
An employee that doesn’t feel appreciated will eventually lose motivation to go above and beyond. Human resources should regularly assess everyone's skills, achievements, and growth potential in the business.
Employees with a clear career path and an understanding the steps necessary to move up are more likely to achieve their goals. Human resources can answer questions and guide employees towards success in the company.
HR should check in with employees regularly and offer additional training opportunities. Employees who feel you’re vested in their future are more engaged and committed to your business.
A business typically needs a human resources manager once it grows to a certain size. Most small businesses can handle their HR needs internally with the staff they already have.
Most experts recommend bringing on a full-time HR manager when there are at least 10 employees within the company. We think that’s a fair generalization, but some business owners may choose to hire someone sooner or later than that.
Obviously, if the business continues to grow, that HR manager will need to grow into a department to handle all the tasks appropriately.
Having a dedicated human resources person or team plays a major role in a business’s work culture and company retention.
Research indicates that 75% of employees would stay with an organization longer if they felt like the company listened and addressed their concerns. This is especially important in smaller companies, where having someone other than the business owner address employee needs can help the team work more efficiently and professionally.
A savvy HR specialist can also improve your bottom line by increasing retention rates and reducing the costs associated with high turnover.
A human resources department is beneficial and vital to businesses over a certain size. Whether it’s one person or a whole team of professionals, HR should be dedicated to the well-being of employees and what your company can offer them.
The right HR team should be able to eliminate the bulk of mundane tasks that business owners try to avoid. They also know how to attract the best talent and keep them happy and engaged while your business employs them.
If you need help hiring the right people, Hoist can provide training and support to guide you through the process.
Sources:
What Does Human Resources Do? | Indeed
Does Your Small Business Need an HR Department? | U.S. Chamber of Commerce
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