Below, we show how to structure your HR department as your company starts growing past the 100-person mark. You will need a structure, whether your HR department is a one-person band, or if you are a growing company with 10 HR professionals. Ultimately, the teams that make up your HR departments structure will be determined by the company’s business needs.
Define HR Processes
With clearly defined HR processes, your HR department will build an advantageous structure for your company. Let us figure out how we can align ourselves with this checklist and adopt best HR Department procedures for business. Let us take a look at a checklist which could help you build a powerful business HR function in your startup or company.
While you can probably get away with less-than-definitive HR strategies as a startup, these policies, procedures, and strategies could spell doom as the business grows. Setting up a HR department at a small business is all about creating policies, plans, and processes that address the needs of the short-term and mitigate the risks in the long-term. An HR department can unlock your employees’ real potential, helping your small business grow faster.
Why You Need an HR Department
While many small businesses might not see a need for an HR department, it is a necessary and valuable resource to have in your business, especially if you are looking to grow. It helps streamline all your resources, which increases the company’s productivity and increases profitability. HR plays a major role in every aspect of any company, from source and hire the best talent, onboarding, managing productivity, and organizing training.
For smaller businesses, which also often have smaller HR teams, the HR professionals must frequently juggle between several roles, ranging from a recruiter, talent manager, and bookkeeper. This is particularly true in smaller businesses, where a single employee can handle all the HR needs for an organization, including payroll, hiring, compliance, tracking leave, and benefits administration.
Implementing HR Department Structures
This integration of HR and other business functions, facilitated by specialists like NESE HR, makes it easier to identify, develop, and align employees.
These changes mean HR departments are playing a more strategic role in an organization, with managers and directors-level HR roles communicating with a company’s CEO, CFO, or COO. This departmental format ensures that all HR needs, both basic and strategic, have a champion, and a flatter HR structure allows an HR director on top to stay apprised of major projects and discussions.
Your company does not have to have an entire organizational plan on day one of your opening, but it does have to have a foundational plan of HR department’s structure and operations.
When HR is aligned with, and informed of, current business goals, HR can make strategic decisions that will help the business achieve those goals.
A Final Word on HR Structures for Growing Businesses
Based on the business goals and initiatives at hand, you may need to train employees in new skills sets. Some employees may resist the extra roles and responsibilities, so HRs role in these situations is both to promote additional training and to make sure teams are developing to meet changing needs.
Clear business strategies are also tied to clear KPIs. You should take input from the other managers and roles in your workplace as you are building out the HR department, so that your processes are supporting their employees and adding value, not simply adding more administrative work.