2 Best Ways to Structure Human Resource Department as Your Business is Growing

September 27, 20184:54 pm11915 views

As your company grows, you need to constantly revamp the company’s organisational structure too. In most cases, human resource department will be the first place to achieve this goal. HR is like the heart of a human’s body. Without it, the body cannot distribute and pump the blood around the body well. Meanwhile, within a company, HR department’s responsibilities span a wide variety of functions, including staffing, employee training and development, compensation, and retention.

Maintaining the employees is just a small part of HR department jobs. When a business is expanding and growing, there will always be bigger and harder challenges to face, such as raising the bar to find the best talents for certain position or ensuring high employee engagement level. That being said, it is a vital to restructure your HR department when your small business grows bigger. Below are the solid ways to structure your HR department better. Let’s take a look.

See also: Top 3 Barriers Influencing Performance of the Human Resources Function

Mind the number of employees

First and foremost, the size of your company will determine the complexity of the HR department you should have. The bigger your company is, the more complex and larger the HR department will be. Let’s take a look at the chart below.


SOURCE: softwareadvice.com

The chart suggests that you should have at least two HR staffs when you have 150 employees on board, while you can rely on HR software when your employees are only 49 or below. Why so?

According to a research from Society of Human Resource Management (SHRM), the need of HR people is according to the compliance of the problem that the company might face such as hitting an unexpected growth. Moreover, the more HR employees you have, there is need to construct the HR department better. At this point, you should define the role and responsibility based on the needs. For example, you should have HR staffs assigned for staffing role because it is essential for your company’s talent development.

Create an HR plan

In line with the earlier point, the second thing you should do is create an HR plan. You can start by jotting down the jobdesc of your HR team. This will help the HR department focus on their tasks and improve their performance. There are 7 HR jobs suggested by Chron:

  1. Recruitment and Selection
  2. Compensation and Benefits
  3. Health and Safety
  4. Labor and Employee Relations
  5. Training and Development
  6. Risk Management
  7. Managers and Directors

Likewise, to avoid any accumulation of task, you should outline the task of each HR person you have. Mary Karamanos, a senior vice president of human resources in BDC, suggests to cover the following areas:

  • Job description

As your business starts to grow, you should make sure to divine specifically the roles and responsibilities of your employee, to avoid duplication of efforts and burnout.

  • Organisational chart

It is a good thing to keep the organisational chart neat as you can make sure that the CEO won’t receive amass information of the company’s growth.

  • Hiring schedule

This area is to make sure when to hire and what kind of expertise you will need. It will help the hiring process run smoothly.

Read also: Learning “Human Resources” Language

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