The five questions of human resources
Why have an HR function?
A well-established HR function:
• increase your productivity
• reduce your overhead
• increase your employees’ commitment to your business
• improve your employer / employee relationship
• minimizes risk in labor relations
• help establish your business strategy
• help put your strategy into an operational plan
• allow you to measure important milestones in your operational plan
What will a human resources function provide?
An HR role is designed to provide you with some practical tools and tips such as:
• an employment contract
• a robust recruitment process and tools
• a performance management system
• tools and support to handle performance issues
• metrics regarding your people
HR will contribute to the construction of a strategic business plan integrated with solid people plans.
Following your strategic business plan, operational goals and action plans for employees are compiled with measures to monitor progress and results.
These operational goals mean that you will have a way to measure and reward employee behavior.
As your business grows and requires more resources or changes in your organizational structure, the right HR person will be able to work with you to identify your business needs, establish a process, and guide you through the change process to achieve maximum employee participation and risk minimization. This would apply both to changes that involve downsizing and to changes resulting from growth.
When should you install an HR function?
Human resources starts from the moment you can no longer run your business with just yourself and begins the process of planning how to meet your business requirements by recruiting staff. It is the quality and intentionality of your HR function that determines when you should consider a dedicated HR resource to manage the HR function.
The general rule of thumb is that when you have more than 80 full-time employees, you are guaranteed to have a full-time dedicated resource in your own company. Up to that number you can outsource your role to qualified professionals who will achieve the same goals on a part-time or contract basis.
Where would you find qualified professionals?
You can find suitable resources from financial / management consultants who offer HR resources as part of their audit services, as can some recruitment / management consultants. Lawyers can offer sample labor agreements. Some trade associations offer templates and have in-house advisers to assist companies with employment-related matters. Using non-HR specialists, particularly management consultants, can be an expensive option, and they often lack the full business focus.
Another avenue of help with this role is through human resource experts who have built their own consulting business. They offer the HR function on an hourly or monthly basis and work with you on your business as needed. This is a more holistic and cost-effective way to have a function that can be fully integrated into your business. These people can be found on the Internet, through your local human resources institute or business association.
Who is the best consultant to choose?
The best people are those with experience as HR consultants. They must have both the qualification and the experience to understand your entire business and be able to partner with you. Look for someone who has worked in your industry sector and / or in a broad spectrum of organizations, who has a proven ability to understand business needs. Check to make sure they have sat down on the management teams and can talk about sales, marketing, operations, etc. and that they can understand finance and customer service. You want someone who can think strategically but is operational. Also check to make sure they have personal credibility. Will they do what they say they will?
conclusion
A quality HR function is an important asset to your business. The sooner you make sure you have such a feature, the sooner you start to see positive results in your business. It may not have to be a huge financial commitment, but it does involve finding the right professional to manage that role for you.