What does a Human Resources department do? Most people are aware that HR handles recruitment, payroll, employment policies, benefits and compensation. HR also often acts as a go-between for employees and managers, and can explain company policies such as FMLA and paid time off.

The most important function of HR, though, is hiring talented employees, developing employees and helping them grow, and retaining your best employees. In addition, your best HR managers understand your business so that what they do has a direct and positive effect on your business.

The most successful companies view HR as a vital link to growth from the outset, but the majority of firms with fewer than 50 employees don’t have a dedicated human resources department. In fact, the average ratio of HR representatives to employees is about one representative for every 50-55 employees.

Every company’s strategy is different, but you probably need to have someone handling HR if:

You’re expanding quickly

A company is only as successful as the employees who work for it, so if you’re hiring new staff at an increasing rate or opening a second location it might be difficult to ensure that you recruit and retain the best staff without a dedicated HR person. HR can help you create job descriptions and person specifications to ensure you attract top talent.

HR can also review each of your employees’ performance on a regular basis to determine areas of strength and weakness, identify where improvements need to be made and make recommendations based on where employees are best suited within your organizational structure.

You can’t keep on top of changes to employment law

A dedicated HR expert can make sure you’re up to date with all the latest changes to employment law from restricting salary history inquiries to eliminating questions about criminal history on job applications to accommodating pregnant and nursing employees and protecting LGTB workers. In addition, the #MeToo movement is causing companies to scramble to hold anti-harassment training, which HR can do.

You find yourself getting involved in employee disputes

The more employees you have, the greater your risk of harassment claims, pay disputes and unfair treatment. The consequences of handling these types of situation badly could end up with you being sued. An HR manager is responsible for handling conflicts in the workplace, and can most likely avoid lawsuits through mediation. Harmonious employee relations are important for the success of any business.

You’re spending too much time on personnel issues

Many entrepreneurs put off hiring a dedicated HR professional because of the cost, but this means that key people in their business are forced to spend time on employment issues – time that could be spent elsewhere. So if you want to concentrate more on growing your business, an HR person can deal with all your legal requirements, policies and procedures, making sure that you are in compliance with current employment law.

Is it time for you to outsource HR? To learn how The Lindenberger Group has helped numerous companies with successful HR outsourcing, call us at 609 730 1049 or email us at info@lindenbergergroup.com today.