Understanding the HR Evolution…the Most Essential Element of Your Business!

“Happy Wife…Happy Life” may be a theory that is applicable in your personal life, but in business long gone are the days where the Human Resources Manager/Department is solely focused on employee satisfaction as it was once perceived in many companies. Every company large or small has an individual or team of individuals that make up the department of Human Resources. It might merely be the entrepreneur or an individual hired as the Director of Human Resources. Regardless of the person fulfilling that role that individual is more fundamental to the success of the business today than it ever has been regardless of the company size.

First let’s look at the primary roles of the Human Resources Department that once encompassed their only function in the organization:

• Hiring

• Firing

• Payroll

• Benefits

Whether the entrepreneur for a company performs these roles or another hired person performs these roles there is no denying that their role is profoundly essential to the company. Think of one task that would literally implode a company if it weren’t performed flawlessly week after week, bi-weekly, or monthly. Undoubtedly that task would be payroll. That one deed in itself is a remarkable feat for anyone that hasn’t had the training to perform the task. Now let’s examine the roles a Director of Human Resources now has a responsibility to participate in as a result of the sophistication of business trends that are developing incrementally on a constant continuum.

Directors of Human Resources are now taking on a more strategic role in the company. The previously mentioned tasks are likely recognizable tasks that need little or no explanation in their importance or function. The following strategic roles will vary and certainly not all-inclusive to every company or every Human Resources Department.

• Employee Selection – Whereas “Hiring” was mentioned previously the added role of the HR Director now is often making the final decision of the hiring of a new employee.

• Onboarding New Employees – In order to expedite the new-hire fulfilling the position requirements it has rapidly become the role of the HR Department to initialize training for new employees.

• Professional Development – The HR Director is now charged with providing or finding the resources to continue educating employees to enhance their role in the company. It might be technology training, efficiency training, or any number of other needed skill improvement that now falls as the responsibility of the HR Department.

• Employee Promotions – The HR Director is often the facilitator in the portability of a current employee.

• Labor Relations and Legal Compliance – This requirement is analogous to the one line that exists in every job description that says, “And any other task assigned to the employee.” Without doubt every strategic decision has legal complication and or labor relations that need to be considered and a Director of HR must assume the role/responsibility for advising executives/entrepreneur of those regulations.

The development an HR Scorecard is imperative in strategically organizing and measuring the effectiveness of employee functions and the achievement of the company goals. Watch for upcoming blogs on creating an HR Scorecard for a company of any size.

If you would like support in developing your Human Resources Department and your HR Scorecard we are we are eager to team together with you to get the results you desire.

Visit our website at www.themeritgroupindy.com or call 317-805-4896 today!

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