When preparing to launch a business venture, entrepreneurs are faced with creating and developing a healthy and productive operational team. This involves organizing functional departments such as marketing, accounting, technology, customer service, and – Human Resources. You will need a designated plan for addressing recruiting, benefits, and compliance within your organization. These are the basic roles and responsibilities of an HR department and tips to ensure it runs smoothly
The major responsibility of the HR Department is staffing the company. This is also called talent acquisition. Typically when there is a need for additional help, human resources creates a list of the job description and is responsible for attracting candidates with suitable skillsets and relevant expertise. This process can include posting on job boards, putting an ad in the classifieds, posting it on the company website, or using a third party service.
Talent assessment duties of the HR department include reviewing resumes, interviewing candidates, and testing their knowledge and skills relevant to the job. One major obstacle that HR typically faces is how to assess the loyalty and dedication of the candidate and potential new hire. Training and onboarding a new hire takes time and money; therefore, you want someone who will stick around.
A good tip to make sure you are hiring someone who has the potential for staying long term is by looking at how frequently they have switched their jobs in the past. If it is too frequent, then the chances are higher that they are looking for a better opportunity. While it is important to look into their education and certifications, overlooking job stability is a major flaw in the hiring process leading to severe consequences within the company.
Also, make sure that you interview candidates appropriately. It is important to have someone from the specific department help interview since they are the ones who will be working with that person.
The HR department is also responsible for determining what constitutes grounds for terminating employment and deciding what that looks like. It can be very unhealthy for an organization’s firing process to be flawed. Companies show many talented employees at the exit door due to bad performance. What they may be missing here is the importance of looking into what is causing the bad performance. The employee may just be going through a bad phase of their lives. It is the job of an organization’s HR department to find out the problem with an employee and address it rather than firing them due to poor performance.
It is extremely important to have a department that is free of any favoritism as this is the biggest concern in the corporate sector. Usually, a successful HR department incorporates some sort of policy into a job application that disallows the family of the executives to apply for the job. This ensures your company avoids hiring on people that don’t add any value to the company.
Another major part of the HR Department is to make sure all of the correct tax forms are filled out when onboarding new employees. Any mistakes in this area can lead to fines by the IRS and loss of money from the company.
These are the common mistakes that ultimately prove to be fatal and unfixable. Statistics show that more than half of the small businesses worldwide dissolve within their first few years, and mistakes made in HR have the potential to cost a larger established firm millions of dollars. Ensure your company succeeds and invest in a qualified team.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.