Signs that it’s time for an HR department

When should your company implement a Human Resources area?

When starting a new company, most people won’t even consider having a Human Resources department. “Maybe when we have more employees”, they say. So they start operating without the area that takes care of the most important factor in an organization: the human factor.

Contrary to popular belief, an HR department not only supervises work environment, but also manages aspects like recruitment, staff selection, mitigation of labor risks, compliance of legal and tax issues, payroll, among others.

This is why it’s important to have an HR area in your business, whether it is a start up or a big company. And if you don’t want to implement a whole department inside your office, you can opt for Outsourcing, the greatest way to handle all HR related subjects without actually having to handle them yourself.

Here are some signs that it’s time to start thinking about HR for your business:

When technology tools aren’t enough

Surely technology means a huge help when managing aspects like payroll. But the truth is, that while tools are useful and innovative, they don’t replace employees. Things like hiring should be done by people, because face-to-face contact can create a positive employee experience, which couldn’t be achieved with technology alone.

When random people assume HR responsibilities in case of incidents

You know you need an HR department when random employees start functioning as HR experts when problems arise. First of all, when this happens, a hole is left in another area of the company. And second of all, although the employee meant well, s/he is not really an HR expert, so who knows if the problem was properly solved or just controlled for the moment.

When no one is taking care of compliance and legal aspects

Payroll is without a doubt one of the most important tasks of an HR department. And if no one is paying attention to new tax provisions, mandatory requirements or legal aspects, the company can be in big problems. When specialized people take care of this area, sanctions are avoided and employees don’t experience delays or problems with their payments.

When unexperienced people are recruiting employees

Let’s not forget that recruiting, interviewing and selecting staff is a complex and specific duty that has to be done by Human Resources experts. Certainly, eventually the manager of the area will have to interview candidates, but it should be mentioned that these candidates were firstly selected by an HR expert. This is because only experts know how to recruit qualified people, so don’t tell one of your employees to start doing this job if they have no clue how to do it.

When the company grows 

There’s not an established number that indicates that your company is now a big company. You can have 5, 50 or 500 employees when your business starts to feel messy and disorganized. The minute you detect many problems, doubts or bad attitude from your staff, start considering an HR department. Besides, having this area will improve your image and endorse your formality as a company.

In RHS Latam we are experts in HR-related aspects, specially recruitment and payroll. If you are looking to establish your company in Mexico, contact us to manage your HR department.

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