Human Resources encompasses more than just listening to employees complain or distributing information about benefits. It is actually the nerve center of the company, communicating vital information and performing integral processes that keep the business running.
On the most basic level, HR is involved in recruiting, hiring, morale, employee assistance and counseling, benefits, compensation, training, discipline, firing—just about anything that involves employees and their working lives. There are some general areas that characterize most HR responsibilities, which include:
• Compliance—Keeping track of state and federal employment law and requirements, and keeping managers and supervisors informed of what they need to do
• Employee and labor relations—Equal employment opportunity compliance, dispute resolution, union efforts, negotiations and arbitration, employee communications
• Staffing—Forecasting, recruitment and selection, hiring, orientation, retention, performance management, discipline and termination
• Performance—Helping supervisors assess an employee's specific and overall performance, and documenting performance accurately
• Benefits—Health insurance, workers' compensation plans, pension, profit-sharing, and 401(k) plans, other retirement benefits, work and family programs, vacations, leaves of absence
• Compensation—Wage and salary programs, job classifications, performance appraisals, salary surveys, incentive and bonus programs
• Training and development—Management training, supervisory and nonsupervisory training, skills-based training, team-building, career development, organizational development
• Planning—Strategic planning, restructuring, mergers and acquisitions, succession planning
• Recordkeeping—Maintaining accurate records to help prove your compliance with government recordkeeping and reporting requirements, as well as to defend your decisions on such matters as hiring, discipline, and compensation
With all of these different hats to wear, owners of small business and office managers may find it difficult juggling compliant human resources function on top of their other demanding tasks. Not to mention that most of the people in smal businesses who are thrown into the HR role don't have an HR background and are unaware what regulations they're subject to. It is important to establish HR function for three critical reasons:
Compliance doesn't have to be a struggle or a headache. Learn from the experts and apply their knowledge to your business. The peace of mind you gain will be priceless!
On the most basic level, HR is involved in recruiting, hiring, morale, employee assistance and counseling, benefits, compensation, training, discipline, firing—just about anything that involves employees and their working lives. There are some general areas that characterize most HR responsibilities, which include:
• Compliance—Keeping track of state and federal employment law and requirements, and keeping managers and supervisors informed of what they need to do
• Employee and labor relations—Equal employment opportunity compliance, dispute resolution, union efforts, negotiations and arbitration, employee communications
• Staffing—Forecasting, recruitment and selection, hiring, orientation, retention, performance management, discipline and termination
• Performance—Helping supervisors assess an employee's specific and overall performance, and documenting performance accurately
• Benefits—Health insurance, workers' compensation plans, pension, profit-sharing, and 401(k) plans, other retirement benefits, work and family programs, vacations, leaves of absence
• Compensation—Wage and salary programs, job classifications, performance appraisals, salary surveys, incentive and bonus programs
• Training and development—Management training, supervisory and nonsupervisory training, skills-based training, team-building, career development, organizational development
• Planning—Strategic planning, restructuring, mergers and acquisitions, succession planning
• Recordkeeping—Maintaining accurate records to help prove your compliance with government recordkeeping and reporting requirements, as well as to defend your decisions on such matters as hiring, discipline, and compensation
With all of these different hats to wear, owners of small business and office managers may find it difficult juggling compliant human resources function on top of their other demanding tasks. Not to mention that most of the people in smal businesses who are thrown into the HR role don't have an HR background and are unaware what regulations they're subject to. It is important to establish HR function for three critical reasons:
- To avoid costly lawsuits and government fines. Your money is your money! You want to use profits to invest in your company and your employees, and to provide yourself with an income. But if you aren’t doing things the right way, the government can fine you—the I-9 form alone carries fines from $100 to $16,000 per violation. Disgruntled employees may look for reasons to sue. It only takes one lawsuit to negatively affect your bottom line. The average defense costs for wrongful termination are $85,000 with the average settlement $500,000. Read more about non-compliance here.
- To establish best practices. We don’t just recommend implementing HR structure as an option that might help you or busy work for rainy days. We know through experience that establishing your HR function will make your company run smoothly. Your employees will be able to work more efficiently because they know what’s expected of them, and you’ll be able to measure your successes with certainty because you have processes in place.
- To make your company great. We know you strive for excellence. You want to be successful, and you want your businesses to be a coveted workplace. Paying attention to human resources can help your business run more efficiently and be more profitable.
Compliance doesn't have to be a struggle or a headache. Learn from the experts and apply their knowledge to your business. The peace of mind you gain will be priceless!
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