Do All Companies Need a Human Resources Department?

Do All Companies Need a Human Resources Department?

The concept of human resources isn’t a new one; in fact, it was first introduced to enterprises well over a century ago. It’s their role to manage disputes, handle employment (including hiring and firing), navigate the complex tunnels associated with personnel operations and much more – but are they really needed for companies of all sizes?

The simplest answer is that it all depends on the activities that go on within the company itself.

It’s not unheard of for companies with an employee count of under 10 to hire these types of specialists to take care of all of the aforementioned factors and more, but generally speaking it’s the larger businesses out there that could stand to benefit. Those with a higher than average amount of transactions, payments via payroll, employee turnover and larger numbers of personnel are the most likely to need to take on these types of services.

What they do in a little more detail

Outside of the traits mentioned above, HR teams will usually also take care of the administrative functionality of a company, address benefits owed to staff, manage training and take care of the direction of personnel for the betterment of the business. This is part of the reason why, as soon as a company expands to enough employees, the owner will often consider taking on an HR agency – either in-house, or opt for the more convenient third party provider instead.

Why third party?

One of the most appealing things about hiring a third party team of specialists is that they will only be needed in increments. Although many companies take on HR specialists all year round, they’ll typically switch them to in-house team members as they’ll be a part of the business. A third party on the other hand will always be separate from the actual financial obligations of the company; meaning that they won’t need to be paid for holiday time or sick days – they’ll simply be expected to perform their task as and when they are needed.

Another benefit of their services is that they can take care of the hiring and firing process in a legally supported way. Many company owners have found themselves facing lawsuits and claims of unfair dismissal when relieving employees of their duties, but with an HR team – the entire process can be handled from a more legally-sound perspective.

Their team will often understand the legalities, policies and protocols associated with hiring and firing. As a result much of the onus can be taken off of the business owner, allowing them to reduce their own stress and pressure.

So, do all companies need these types of services?

If they’d like to spend their time in better ways, save themselves money by negating waste and have their company handled by a team of dedicated experts, then certainly – all companies could stand to benefit from these types of providers.