Hiring a Human Resources Manager

For many small companies, hiring a human resources manager is a big step. Most do without formal HR departments or even dedicated managers. Personnel-related duties are often assigned to relevant employees: payroll to the accounting manager, hiring practices to a midlevel supervisor, personnel management to a department head. And that works fine, for a while.

Knowing whether you actually need an in-house HR manager can be tricky to assess. Many companies put off making the decision for as long as possible, so they don’t have to incur the additional expense. After all, small companies are used to getting by with less. Their employees are accustomed to multitasking, often outside their areas of expertise. If the company is so small or new that short-term dollars are paramount, this practice may remain in place until staff becomes truly overloaded.

Overload occurs when employees who have been tasked with HR functions find they don’t have enough time to do the jobs for which they were actually hired. Overseeing employee matters such as insurance, attendance, performance reviews, and the like is time-consuming, especially as the business grows and hires more employees.

Recruitment is another key area that may determine whether you need an HR pro on staff. If you don’t have someone with formal training in finding good employees, you may end up with unsuitable workers who will cost you in the long run, especially if you are growing quickly and need to hire several people.

Outsourcing

Outsourcing HR functions can make sense, especially for companies that need quick-hit help, perhaps for seasonal hiring, developing a workplace handbook, or evaluating insurance plans. However, for more general ongoing HR functions, it may actually be cheaper to hire a human resources specialist to work in-house. If you’re unsure of just how much HR help you need, you can always begin with a part-time position.

When in-house human resources managers aren’t dealing directly with personnel, they can be tasked with other important functions such as the following:

• Streamlining delivery systems (everything from benefits to notifications)
• Creating and updating policy handbooks
• Leading benefit seminars
• Developing detailed job descriptions for each position within the company
• Creating employee retention programs
• Sending out employee surveys to solicit feedback and suggestions
• Setting up an intra-office web system to coordinate schedules, benefits, and accounts
• Establishing workplace programs (from training to counseling)

In some cases, an HR manager will do things your company only dreamed of. He or she can bring the kind of expertise and know-how to your business that will make personnel matters run more smoothly and more completely.

Hiring

When the decision is eventually made to hire an HR manager, take your time to find the right fit. Ideally the person will have worked in your industry and will be familiar with HR customary and best practices. For instance, some industries have robust employee retention programs, everything from pizza Fridays to Outward Bound adventures; others have none. Some companies provide a roster of benefits; others offer few to none. Knowing what employees in your line of business expect is key to delivering human resources they want and you need.

Ultimately the HR manager you hire must be a good fit for you and your company culture. No amount of training, experience, or competence can replace a good working relationship. This person will often be your stand-in, performing important tasks such as hiring and firing, resolving disputes, and rewarding productivity. Look for a natural fit, a person who can take the reins of this new, unchartered territory in your company and guide it to growth.

Andrea Poe is the author of hundreds of articles on a wide variety of topics, including small business.