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How to Set Up an HR Department in Your Growing Business

In Business
August 21, 2020
Growing Business

No matter what anyone says, the reality is that the Human Resources Department is the backbone of a company. They are the ones that ensure employees are paid, internal company issues are resolved, keep employees happy, and a large variety of other things. Without them, a company can’t grow successfully.

When you started out you may not have needed an HR department. As your business grows, you’ll start to employ new workers. Eventually, you’ll need to set up your own HR department. Here’s everything you need to know.

Why Do I Need An HR Department?

The HR department structure is comprised of a payroll and benefits coordinator, recruitment, administration, and talent/retention team. When you start out, it might be in your best bet to hire a generalist who can work all the areas needed.

Employee payroll and benefits will be the biggest portion of your HR department’s responsibilities. You will want someone who understands this area very well to make sure your employees are being properly compensated. They will need to make sure proper income tax deductions are made, pay stubs are created via a stubcreator, and employee benefits are set up.

The HR department is also responsible for handling employee disputes. This means that HR will be the middleman between you and your employees. They will bring up questions and concerns your staff may have, as well as hand down any directions or company policies on your behalf.

Who’s The Best Person For The Job?

As mentioned earlier, an HR generalist will be what you’re looking out for when starting up your HR department. Ideally, look for someone who has experience working in start-ups so that they’re already familiar with the environment they’re coming into.

Additionally, check to see if there are any HR support groups in your area that can mentor the individual you bring into your business. They can be your HR department’s sounding board as you begin to grow and develop.

When Is It Time to Grow My HR Department?

The typical sweet spot for one generalist to handle is 50 employees. This is usually the time when one generalist can get overwhelmed with the administrative side of HR work, and start putting in less focus on the talent management/retention, and HR strategy aspect of the job. You will need to determine with your hired generalist what they feel is their employee limit.

Always check in with your HR department to stay on top of departmental needs and see where staffing demands are.

HR Departments Make or Break a Company

It’s imperative that you understand the responsibilities and requirements of an HR department and why it’s necessary to have one. As a company owner, you can’t expect to tackle everything yourself so it’s best to hire someone to do the job for you. Make sure you’re understanding who you need to hire and the right time to grow your HR department to keep up with demands.

As this concluding title says, an HR department can make or break a company.

Be sure to check out the rest of our site for helpful content for your company.


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