The efficiency of a company’s human resources department affects every aspect of its business. When you are planning for growth, either rapidly or over a more extended period, you need HR processes that can match your vision. Unfortunately, many practices that work well for small businesses fall short in larger ones.
Choose Which Processes You Can Outsource
If your company’s HR department is small, asking the staff to take on too many roles can cause problems. For example, employees may make mistakes as they rush through paperwork, which can have disastrous results. Your internal staff does not need to handle every single task alone.
Many larger companies outsource specific tasks. For example, you might find a consultant who can handle hiring paperwork or hand payroll to a CPA. You can also turn entire processes over to outside companies for more relief. An excellent example is using a pharmacy benefit management company to oversee workers’ comp claims.
PBMs handle every aspect of prescriptions associated with workers’ comp claims. Processing and approving claims is just the start of what they do. Top companies will also handle jobs such as negotiating lower prices directly with drug companies and monitoring prescription utilization rates. When you use a PBM for workers’ compensation medications, you get the savings associated with their work.
Bring In Contractors or Temporary Employees
The cost of adding the necessary staff for a growth stage can be overwhelming. For every position you need to fill, your HR department must complete the following tasks:
- Compile a job description
- Choose where to post the open position
- Screen applications and resumes
- Schedule and conduct interviews
- Conduct any pre-employment screenings (background checks, drug tests, and DMV record reviews)
- Extend a job offer to the chosen candidate
All of that happens before the new employee is hired. Once employed, HR must complete the onboarding process, which is paperwork intensive and time-consuming.
Your HR department may be better served hiring independent contractors for specific roles. This alleviates a lot of the strain associated with onboarding and reduces the amount of work required by your HR staff.
Alternatively, consider using a temp agency if the open positions are seasonal or short-term. This takes a lot of work off your shoulders during the hiring process and continued employment. If you go this route, be aware of any time limits for how long an employee can legally be classified as temporary to avoid legal problems.
Listen To Employee Feedback
If you ask an employee to take the time to provide feedback, you must listen to what he says. That does not mean you have to agree with the feedback, act on it, or even like it. However, it does mean you will listen to it and consider what it says about HR processes. Failure to do this tells employees that their input doesn’t matter.
For example, take a look at exit interviews. They are frequently done, but companies often fail to act on the feedback received. This trend has led to a negative impression of the entire process and employees’ reluctance to participate. As a result, instead of being a valuable tool to inform future HR decisions, exit interviews have become a dreaded part of changing jobs.
Embrace Digital HR Tools
There is no avoiding the paperwork involved in human resources. However, numerous digital tools can help make it less tedious. The best HR management software can help simplify department processes and make the job easier. They can help staff tackle everything from recruitment and hiring to performance reviews and employee terminations.
Recognize When You Need New Processes
Just because something has always been done a certain way does not mean it should continue in that manner. Unfortunately, admitting that something isn’t working is difficult for any manager. However, it must be done if you want to develop an HR department that can grow with your business. Take an honest look at how you are currently handling things and what will need to change for your business to meet its goals.
For example, if all of the hiring and training falls to individual departments (or yourself), then it is time to invest in HR personnel. Starting with a part-time employee or independent contractor might work during transitional periods, but you should start planning now for more staff.
A good human resources department adapts to company growth by adopting new strategies for success. These may include turning to independent contractors, listening to feedback, and embracing digital tools. Outsourcing specific tasks can also help alleviate strain on the department.