Human resources is the person or group of people at a company who manages all things, or “resources”, related to its employees. Responsibilities of Human Resources Handle employee relations Create an employment structure Manage employee job satisfaction Manage employee benefits Handle compensation Maintain the company business plan Handle new hire training Create company culture standards Maintain a healthy work environment Handle necessary administrative work Handle employee relations HR handles the employee-to-employee relationships as well as the employee-to-company relationship. Your company’s HR team will ensure you have the right people to help you grow your business. Manage employee benefits Your HR department will handle the amount and type of employee benefits your company offers. It also includes your company’s ethical standards, values, goals, and expectations. How to Build an HR Department in 10 Steps Create a company-wide staffing plan Set an HR budget Make a payroll and administration system Write job descriptions Lay out a clear benefits plans Create an employee handbook Set safety procedures Collect administrative records Display necessary employment posters Create performance and feedback processes We’ve put together a list of 10 steps — not listed in any specific order — you should take to build a successful HR department. You’ll want to create job descriptions for all of the HR roles you need to hire for. Roles in Your Human Resources Department Now that we’ve covered general requirements and characteristics that you should consider looking for in your HR candidates, let’s dive into some of the actual roles you’ll need to fill within the department. So what do HR employees in these roles actually do? Your HR department will manage your employee relations, hiring, training, career development, benefits, and company culture.
When I initially applied for my role at HubSpot, I was immediately blown away by the hiring manager I was working with. She was professional, incredibly informative, and experienced. She had the answer to every question I had about the company, the role I was being interviewed for, and HubSpot’s culture.
From the first point of contact with this HubSpot employee and throughout my onboarding process, she was the prime example of what I believed a person in human resources should be. Even now, she checks in with me to ask how I’m doing and how my job is going when I see her around the office.
Remarkable Human Resources (HR) employees are critical at every company. They handle all employee relations so you can focus on your side of the business. Before we discuss more reasons why your company needs an impactful HR department and how you can go about building one, let’s talk more about what human resources actually means.
What Is Human Resources?
Human resources is the person or group of people at a company who manages all things, or “resources”, related to its employees. This includes — but is not limited to — hiring, maintaining a budget, recruiting, managing benefits, ensuring employee satisfaction, implementing a company culture, and training new hires.
Based on this definition alone, you can see how it would be difficult to run your operation successfully without the assistance HR provides. That’s why even small and medium-sized businesses (SMBs) have HR departments with employees who oversee all management, engagement, and development between the company and its employees. HR departments exist to support you and your employees so you can continue doing your jobs successfully.
The work and responsibilities of a human resources employee will touch a large portion of your business every day. So what does that mean for you? Let’s review some of the most common responsibilities these employees have so you can better understand the impact HR will have on your company.
Responsibilities of Human Resources
- Handle employee relations
- Create an employment structure
- Manage employee job satisfaction
- Manage employee benefits
- Handle compensation
- Maintain the company business plan
- Handle new hire training
- Create company culture standards
- Maintain a healthy work environment
- Handle necessary administrative work
Handle employee relations
HR handles the employee-to-employee relationships as well as the employee-to-company relationship. This means they work to develop positive interactions and treatment among all employees within your company so they feel good about coming to work, committed to their jobs, and invested in the growth of the business. Whether it’s a personal matter or a work-related issue, human resources will handle all issues with care and keep the best interest of the both your company and employee in mind.
Create an employment structure
Your HR department will handle your entire staffing plan — meaning they’ll identify the gaps in your current employee structure and fill them by acquiring new talent. They’re also in charge of firing any existing talent that isn’t meeting company standards. Your company’s HR team will ensure you have the right people to help you grow your business.
Manage employee job satisfaction
Once your employees have begun work, you’ll want to make sure they’re excited to come to the office every day and add value to your company — their excitement is directly related to their level of job satisfaction. If your employees are happy in their roles, feel as though they can grow at your company, and can change departments down the road if they choose to, they’re more likely to be productive members of the team. Your HR team ensures your employees really do feel satisfied in their roles, and will work with them if they feel unhappy or unsatisfied at any point in time.
Manage employee benefits
Your HR department will handle the amount and type of employee benefits your company offers. Providing good employee benefits is critical to the success of your business because they’re proven to attract and retain talent as well as increase employee productivity. Benefits keep employees satisfied by giving them a variety of perks and and making them feel secure in their roles.
All payroll and compensation work is managed by HR — this includes employee salaries, payment schedules, W2s, and all other tax-related paperwork. If an employee is offered a promotion, or if employees are given bonuses, HR will handle all changes in their regular payment schedules.
Maintain the company business plan
Your HR department will help you create, distribute, and maintain your company’s business plan — this serves as an overview of your company’s organizational structure. It covers your company’s philosophy and culture code, the way in which you manage your employees, and how you’ll distribute your resources.
Handle new hire training
When an employee is hired, HR will often take them through the necessary training they need prior to diving into their everyday tasks. Whether it’s one day or six weeks, new hire training is critical to making that person feel comfortable in their new role. It’s also a great way to set expectations early on and get them prepared so they can begin making an impact as quickly as possible.
Create company culture standards
HR is in charge of helping you create and maintain your company culture — this includes your philosophy, mission statement, and work environment. It also includes your company’s ethical standards, values, goals, and expectations. HR may implement programming, activities, check-ins, or events at your office so your employees can learn and develop a better understanding of the culture.
Maintain a healthy work environment
Your HR team will assist you in creating a healthy and safe work environment for all employees. Their role in this includes setting health and safety standards in the office, communicating these standards to all employees, and upholding them as the business grows. These health and safety standards should be written so they can be easily referenced at any point in someone’s time at your company.
Handle necessary administrative work
A lot of your company’s administrative work is handled by HR. This includes paperwork related to federal and state tax laws, job applications, time-keeping and payroll information, and employee contracts.
How to Build an HR Department in 10 Steps
- Create a company-wide staffing plan
- Set an HR budget
- Make a payroll and administration system
- Write job descriptions
- Lay out a clear benefits plans
- Create an employee handbook
- Set safety procedures
- Collect administrative records
- Display necessary employment posters
- Create performance and feedback processes
We’ve put together a list of 10 steps — not listed in any specific order — you should take to build a successful HR department. Whether you begin working through this list with or without your company’s first (or first few) human resources employee(s), all 10 items on this list should be thoughtfully considered.
1. Create a company-wide staffing plan
Create a company-wide staffing plan so you can identify all positions you’ll need to fill with your new hires. This may also include moving current employees into new roles or even removing employees and/ or their roles entirely from the company.
2. Set an HR budget
You’ll need a budget for…