Every company either small, big or a startup needs to enforce human resource laws and policies to secure their employees. So, does this mean the organization should have an HR department implemented inside the entity?
For fast growing businesses the major problem for them might be managing the needs of their workforce in time. A popular trend in many of the business organizations today is outsourcing of the HR department for managing hiring and recruitment process.
According to Jan Kruchoski, principal-in-charge, CliftonLarsonAllen Search LLC in an article by Dan Emerson on finance-commerce.com stated that it entirely depends on an organization when they want to hire an HR leader. Jan also said that a highly focused professional service firm may want to make that calculation earlier than a small manufacturing business with shift workers, who may not want a full-time HR specialist.
A Minneapolis based HR consultant, Arlene Vernon highlighted the need for companies that often hire entry-level employees needs to have an in- house HR leader to handle job descriptions, employee orientation, managing benefits and maintaining personnel files.
Some of the common functions of an outsourced HR department in small businesses are mostly payroll, preparing necessary documents for the employees, keeping record of employee details etc. Companies who do not have an HR department mostly face problems while firing an employee because firing an employee requires written policies and documentations. If you fail to provide the supporting papers for that decision, it can make an employer accountable for paying unemployment benefits and potentially trigger legal liability. So, it becomes very essential to have an HR specialist who can manage the hiring and firing of employees either on-staff or outsourced, as said by Vernon.
Ken Viggers, HR management services director in RSM McGladrey’s Cedar Rapids, Iowa, expressed his views on the same saying that when organizations contain at least 50employees they often outsource functions to a contract HR manager. However, companies having 100 or more employees require a full-time, in-house HR manager. HR generalists are responsible for doing those types of jobs.