Organizing The HR Function
All organizations need an HR function. Almost all companies pay close attention to their products (quality, price, delivery etc.), or else they will have unhappy customers. They pay attention to their customers – old ones need attention and new ones need to be identified and sold – making sales and marketing a crucial concern. Everyone pays attention to finance – we are all in business to make money and to spend it wisely.
But the fourth wall in the foundation – the people who make it all happen – is often given little or no attention, and very rarely the same level of attention and concern as the other three.
Small organizations often say that they are too small and cannot afford a seasoned HR specialist, and that is usually right. In fact, the occasions that a small organization needs an HR professional are few.
Where small organizations notice a gap is in the simple things. The first challenge is hiring. Choosing the right candidate is not so simple. Entrepreneurs are naturally confident – and in hiring often over-confident. Good hiring does not come naturally – it is something that is learned and can be taught. This is a time when a wise boss in a small company does his research, and probably asks for professional help. Interviewing skills do not come easily, and too often untrained interviewers do more talking than the candidate. Reference checking is also crucial, and digging for information is a specialized skill. Seeking professional help pays off many times over.
Rewarding employees for a job well done, or limiting rewards when performance drops off, should not be a haphazard affair. Internal equity is important, and getting pay right both saves money and keeps pay off the table as a bone of contention. And when variable pay (bonuses etc.) comes into the discussion, there is an opportunity for disaster. Variable pay is a specialist topic and should not be entered into lightly.
Saying good-bye to an employee is also an activity that should be planned in an environment of professional expertise. There are risks everywhere – the law sets requirements, employee relations need to be considered, and termination costs must be managed. None of these issues should be left to inexperienced or amateur efforts – the risk is too high. We let people go because there was a problem – don’t create more problems by handling the termination unprofessionally.
For small organizations that cannot justify an HR professional, the solution is to appoint someone internally to manage the clerical side of things – completing and submitting forms to insurers, etc. For times when professional advice is needed there are independent HR professionals who have experience and expertise, and can assist on a small project basis, or by the
hour. A professional interview by an HR professional should not be expensive, and will be a positive bargain if it prevents a bad hire, or helps identify just the right and best person. Professional advice when designing a bonus plan is invaluable – the chances of creating a rewards mess is significant, and the consequences can be very serious and expensive. Accidentally incenting the wrong activity can backfire badly and cause unpredictable consequences that can be very serious.
So, for small organizations, the HR function is as necessary as it is for a large company, even if the problems are less frequent and sometimes a little less arcane. But the same small organization that would not consider handling its own corporate tax returns, should manage it HR needs the same way – seek professional advice to improve the likelihood of top HR performance and to minimize risks and headaches.
We can help with professional advice and assistance in a variety of HR areas, from assessing an organization’s needs, to providing professional services during hiring, designing, handling questions, firing etc. Contact us for additional information or to ask specific questions.
All organizations need an HR function. Almost all companies pay close attention to their products (quality, price, delivery etc.), or else they will have unhappy customers. They pay attention to their customers – old ones need attention and new ones need to be identified and sold – making sales and marketing a crucial concern. Everyone pays attention to finance – we are all in business to make money and to spend it wisely.
But the fourth wall in the foundation – the people who make it all happen – is often given little or no attention, and very rarely the same level of attention and concern as the other three.
Small organizations often say that they are too small and cannot afford a seasoned HR specialist, and that is usually right. In fact, the occasions that a small organization needs an HR professional are few.
Where small organizations notice a gap is in the simple things. The first challenge is hiring. Choosing the right candidate is not so simple. Entrepreneurs are naturally confident – and in hiring often over-confident. Good hiring does not come naturally – it is something that is learned and can be taught. This is a time when a wise boss in a small company does his research, and probably asks for professional help. Interviewing skills do not come easily, and too often untrained interviewers do more talking than the candidate. Reference checking is also crucial, and digging for information is a specialized skill. Seeking professional help pays off many times over.
Rewarding employees for a job well done, or limiting rewards when performance drops off, should not be a haphazard affair. Internal equity is important, and getting pay right both saves money and keeps pay off the table as a bone of contention. And when variable pay (bonuses etc.) comes into the discussion, there is an opportunity for disaster. Variable pay is a specialist topic and should not be entered into lightly.
Saying good-bye to an employee is also an activity that should be planned in an environment of professional expertise. There are risks everywhere – the law sets requirements, employee relations need to be considered, and termination costs must be managed. None of these issues should be left to inexperienced or amateur efforts – the risk is too high. We let people go because there was a problem – don’t create more problems by handling the termination unprofessionally.
For small organizations that cannot justify an HR professional, the solution is to appoint someone internally to manage the clerical side of things – completing and submitting forms to insurers, etc. For times when professional advice is needed there are independent HR professionals who have experience and expertise, and can assist on a small project basis, or by the
hour. A professional interview by an HR professional should not be expensive, and will be a positive bargain if it prevents a bad hire, or helps identify just the right and best person. Professional advice when designing a bonus plan is invaluable – the chances of creating a rewards mess is significant, and the consequences can be very serious and expensive. Accidentally incenting the wrong activity can backfire badly and cause unpredictable consequences that can be very serious.
So, for small organizations, the HR function is as necessary as it is for a large company, even if the problems are less frequent and sometimes a little less arcane. But the same small organization that would not consider handling its own corporate tax returns, should manage it HR needs the same way – seek professional advice to improve the likelihood of top HR performance and to minimize risks and headaches.
We can help with professional advice and assistance in a variety of HR areas, from assessing an organization’s needs, to providing professional services during hiring, designing, handling questions, firing etc. Contact us for additional information or to ask specific questions.
