An HR Department performs an important and necessary function in the organization. Recently an article in GoSmallBiz highlighted the importance of this activity.
From the article “Whether it employs 50 people or 5,000, every company must manage certain basic issues related to human resources. These generally include recruitment, interviewing and hiring of employees, orientation and training for new hires, maintenance of personnel records and compliance with Equal Employment Opportunity Commission guidelines and reporting requirements, and the administration of salary reviews, increases and health benefits.”
We would like to focus on the importance of having the HR department help your organization comply with legal and regulatory guidelines. The HR department should serve as the control center of decisions about hiring, performance reviews, salary raises and terminations.
The HR department should be involved in these decisions because of the exposure i.e. lawsuits resulting in dollars lost and a damaged reputation, that doing the above-mentioned activities incorrectly can result.
A strong and capable HR Department can not only help avoid lawsuits and loss of dollars, but it can only help reduce legal fees.
The article also posits a suggestion of when an HR Department should be established based on the number of employees. From the article “According to national statistics, the median ratio of HR staff to employees across all industries is 1-2 per 100; this number represents the total HR staff size, including professional, technical, secretarial and clerical employees.” “An alternative solution might be to add clerical staff in the various units of the company to manage the paperwork associated with personnel administration. If your workforce is larger than 200, it may be time to create an in-house HR function.”
From where should you consider recruiting your first human resources position. The article has a recommendation as follows “In recruiting for the first human resources position, it is a good idea to look outside the company. You will want someone who already has HR experience and training and will be qualified to manage the growth of the department as the company itself continues to grow.” “An organization’s first HR staffer should be experienced in the basic functions: employment, compensation, benefits, records, maintenance, employee relations and training and development. One to two years’ experience is adequate if it is from an organization comparable to yours, and the ideal candidate would be one who had already started an HR department at another small company.”
James P. Randisi, President of Randisi & Associates, Inc., has since 1999 been helping employers protect their clients, workforce and reputation through the implementation of employment screening and drug testing programs. This post does not constitute legal advice. Randisi & Associates, Inc. is not a law firm. Always contact competent employment legal counsel. Mr. Randisi can be contacted by phone at 410.494.0232 or Email: info@randisiandassociates.com or the website at randisiandassociates.com
