3 Signs Your Business Needs An HR Department

3 Signs Your Business Needs An HR Department

When starting a business it can be common for an entrepreneur to fulfill many different roles at the same time. It’s natural to be reactive when a problem arises and try to resolve the issue yourself. However, by being reactive as opposed to proactive, you might be letting the ball drop on other important issues, that can be detrimental to the growth of your business.

Fast growth is exactly what you should be aiming for with your start-up, however to sustain that growth means you need to hire more employees, and with that comes many legal implications regarding things like payroll, contracts, and record-keeping. All of these things are important but take time away from other projects, resulting in sometimes messy or inefficient HR being conducted by your MD.

Here are 3 signs your business needs an HR department:

1.You’re relying on Apps!

HR tech tools are rapidly on the rise. There are some great apps out there that can be helpful with running your business, but they certainly don’t replace people! However these tools should not be used in place of an HR department, but for facilitating the transition of HR from an admin role within your organisation.

If you find yourself using HR apps to help manage your company, take a step back to assess what needs they’re fulfilling and recognise that those needs should be the full-time responsibilities of your HR Manager.

2. You’re being reactive

It is extremely uncommon for a start-up to have a member of the team being responsible for solely HR activities from the beginning. Instead, when a problem arises, it’s more common for a member of staff to be reactive to that issue in able to resolve it.

The problem with being reactive is that this is where companies can get into trouble, when required policies, employee records or other compliance issues have gaps. Fast growth is essential for a new business, but remember you must be able to sustain it. HR is that sense is a strategic movement for your company – you need to have a smooth runway before you can take off!

Assess your recent HR activity, was it reactive or proactive? Did it occur because of an incident that disrupted daily procedure for your company, or are you actively implementing policies around employee benefits, performance management, and employee relations into your strategy?

3. If someone without HR experience is managing your HR

HR Managers carry a lot of weight on their shoulders, and thus they need a particular skill set and experience dealing with legal issues. If you have someone filling in HR responsibilities on the side of managing other tasks, then this is where the ball can be dropped. Human Resources requires the full attention of an HR Manager, irrespective of whether you have 5 employees or 500.

Managing compliance and the legal aspects of the job cannot be overlooked. So if your Operations Manager is also casting an eye over your HR needs, it’s time to stop! This cannot be overlooked.

Is your company expanding at a fast pace? Do you need help implementing an HR Department? I’d love to hear from you so drop me a message!

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