Human resource is that department of the company that handles people. It includes a couple of disciplines from recruitment, accounting, to people management. The role of the HR stuff is to make sure that the people employed by the company are hired, paid, and are working. Businesses owners need to focus on the HR department to maximize the performance of one’s business and to ensure customer satisfaction. The following would show the importance of an HR company for small businesses:
It’s the HR that seeks for new recruits, assesses, interviews, and negotiates with them.
Small business owners may no longer have time to find staff and recruit them. It’s the HR people who know the significance of creating a balance between hiring the best individuals and filling the position at the soonest time possible. These people know the appropriate tools to use for the task. Oftentimes, they resort to online job boards and social media sites. They look for candidates based on high quality job qualifications.
Most HR people know from afar a qualified and trustworthy candidate from the one who’s not. This is not done according to intuition but through the aid of data analysis and some tools such as the resume scanner, conducting pre-employment tests, personality tests, and background checks to make sure that the skill sets of the employees match the requirements of the company. An example of such is encouraging their applicants to use minimalist resumes for thorough checking and helping lessen the application process for both parties.
It’s the HR who ensures that the company practices are Labor Law compliant.
The majority of small businesses don’t realize the value of HR services until such time they have to pay for a fine or receive an audit or a penalty. There are numerous laws under the Labor Code that have to be followed by businesses. Safety of the company employees and the management is a concern of the HR. For a food manufacturing business or a commercial construction company, it is pertinent to hire a safety manager who will ensure that the business practices adhere to the Occupational Safety and Health Administration (OSHA) laws. It is also the role of the HR to make sure that any employee is not discriminated against. Discrimination ranges from sexual harassment to pay inequity.
The HR also handles all the administrative tasks.
There are so many tasks involve before and after recruiting an employee. New hires have to be reported to the state. It is also the HR’s job to classify the employee. Payroll taxes have to be processed and employees will be receiving W-2s at the end of the year. Even the perceived as simple tasks such as setting up filing systems for employee data management. They are the people knowledgeable about what payroll records have to be stored and for how long. They also ensure compliance to the confidentiality laws.