Should HR have its Own Department?

Many companies are unsure as to whether or not they should have a whole department entirely devoted to the realm of human resources; it can be an especially difficult decision to make if you are a small company or a company that is still growing, since it may seem like you don’t truly need an entire HR department.

But there are numerous benefits to have a true HR department, even if your business is a small one. With that in mind, we’ve outlined below some reasons for why HR should have its own department at your company. We hope you find this list helpful and informative.

  • Manage employee needs better. When your small business starts to grow, it can become harder and harder to manage every single aspect of your company yourself, particularly when it comes to hiring and firing employees (as well as handling their day to day needs, such as insurance plans and retirement benefits). As a result, having a whole department set aside to handle these various human resources issues can be of tremendous help when it comes to managing the needs of your employees. And with all of those employee-related duties being handled by someone else, you will have more time to focus on other aspects of your business, such as brainstorming new product ideas or increasing your revenue.
  • Ensure compliance with state and federal safety laws. There are a great number of rules and regulations when it comes to running a business. Depending on what sort of operation or business you run, these can be equipment and workplace safety laws (such as OSHA regulations), food safety laws (for restaurants and grocery stores), hazardous chemical laws (if you work in an industry that handles strong chemicals), and so on. There are both federal laws and state laws for all of these things, and it is the responsibility of an HR department to make sure that your company complies with all of these regulations.
  • Handle payroll and benefits. An effective human resources department can also be a tremendous resource when it comes to handling employee payroll and employee benefits (both health insurance and life insurance, a well as retirement and 401K benefits if your company offers them).
  • Help with conflict management. HR departments are also a tremendous asset when it comes to resolving disputes and workplace conflicts, especially when it comes to being an advocate for an employee. Having a functioning human resources department can give your employees a reliable avenue to pursue if they are having problems in the company (whether it is an issue of harassment or discrimination, or simply a matter of being dissatisfied with their current position in the company). Whatever the problem, the HR department is there to look after the best interests of both the company and its employees, and as such is the best resource when it comes to resolving conflicts in a way that satisfies everyone.