5 Reasons Why Companies Need Human Resources

I was talking with a friend yesterday who does “life coaching,” and she asked a great question … “Why do you like your job so much?” My answer was simple…ExactHire is a small company so everyone here has to wear many different “hats” and no day is ever the same. We have fun together and work as a team!

The more I thought about it, I was struck by the ironic fact that we work in the Human Resources (HR) industry but don’t have a specific Human Resources department or even an HR manager. Every company needs to practice HR-related activities, but that does not mean each organization is required to have a designated person or department for this function; it really just depends on the size of the company. At ExactHire, since we are a small business, we split the standard human resources duties among several staff members, and also utilize a professional employment organization (PEO).

Regardless of the size of your company, it is imperative that you consider how the following HR-related responsibilities are being handled for your business. That way, you can be confident that the employment brand you are presenting to individuals is positive.

Recruiting New Employees

At some point, every business needs to recruit new employees…whether due to growth or turnover. An effective recruiting process is key to an organization’s ability to grow and succeed. After all, how can you take on new projects / clients without more employees? In your business, who seeks out job applicants and screens them? You may have a designated recruiter in HR; or, individual departmental hiring managers may handle this duty for their respective areas. Applicant tracking systems (ATS software) can make the process of sourcing and screening job applicants streamlined and paperless, but someone in your business, preferably with an HR background, still needs to champion the recruitment function at your company.

Administering Employment Paperwork

I know…employment paperwork = BORING! But without it, your employees (and you!) wouldn’t get paid, taxes wouldn’t be properly recorded and benefits would not be available to your staff. Don’t forget about worker’s compensation and unemployment – those items require lots of time and paperwork, too! Also, HR should help to keep your business in compliance with federal and state laws. Many small companies can be overwhelmed with these compliance-related tasks, but it is still necessary to perform these responsibilities. Consider a paperless employee onboarding software solution, to make hiring new employees much easier on everyone involved.

Training & Employee Development

When a new employee is hired, who leads the orientation session(s) in your company? Normally, it’s the head of the employee’s department and/or the HR manager. Without HR, new employees might fail to learn critical company policies, and might fall short of feeling truly assimilated into the organization’s culture. Human resources professionals often head up other training programs such as health and safety programs for employees; as well as, sexual harassment or performance management training, too.

Compensation & Benefits Administration

When first accepting an offer with a company, some of the initial questions asked by new employees include “What is the pay?” and “What are the benefits?” HR typically handles all types of employee benefits, from insurance to 401k to educating employees about a flexible spending account. Medical, dental, vision, life, disability…the list of insurance types alone can get very long. Your human resources department coordinates these policies with the broker/provider and on behalf of the employee. HR business partners also manage benefit open enrollment for employees. When you have an issue with insurance, or a change in deductions for a flex account, or want to increase your 401K contribution, you will likely always seek out your HR guru first. Make sure your business has a “guru” resource.

Employee Relations & Evaluating Performance

Lastly, but certainly, not least – HR is usually tasked with championing a consistent and helpful performance evaluation process for employees. This is a big one! If policies are not being followed, the HR manager, in conjunction with hiring managers/department heads, has to step in and correct the situation…whether it’s a safety issue; or, perhaps an employee not showing up to work on time.

This wheelhouse also includes how well an employee is performing his/her function. Maybe the manager thought an employee would be a good fit for a position but it is not working out as expected. Could that employee thrive elsewhere in the company? Using an employee assessment recommended by HR, the organization may be able to help find the right fit for the department among other candidates; or, a new place for the existing employee. Performance evaluation also serves as a mechanism to review progress, and then effectively and sufficiently reward those that are doing a great job for a business.

As you can tell, there are MANY important duties that human resources performs in any company, of any size. Individuals tasked with these types of duties play the role of cheerleader for the employee, and also serve as the middleman between management and the employee. If you are not sure what you can do to improve your employment brand, ExactHire offers several web-based software tools to streamline HR-related tasks…making them easier and more efficient. Contact us today for more information or visit our resources section.

Image credit: Question mark made of puzzle pieces by Horia Varlan (contact)