When most companies talk about scaling their business, there’s an emphasis on strategic initiatives to increase sales and marketing, improve quality and production, secure new equipment or acquisitions, research new products or services, and the list goes on. Hours upon hours are spent strategizing these areas; unfortunately, one of the last things on the list is a strategy for scaling Human Resources (HR) and how its functions need to adapt and grow with the business as well.
As the economy continues to strengthen, many businesses are growing faster than they anticipated. While that’s a great “problem” to have, it’s leaving many business owners scrambling to keep up with all the demands that come along with that growth. Some of the greatest unforeseen challenges are added compliance requirements, hiring protocols, employee retention and other HR-related functions. Here are just a few examples of the types of issues many employers face as their companies grow:
It’s most often the additional tactical HR needs that become apparent as a business grows: payroll, benefits, compliance, etc. But a strategic approach encompasses much more and includes the following:
A major element of today’s HR landscape involves technology as a support foundation. Notably, technology helps your company remain compliant. The 1095 form, for example, can be quickly pulled for ACA reporting and, when filling out an I9 form, the right system will help ensure accuracy because it won’t allow you to advance if it’s not filled out properly.
In the event that auditors from the Department of Labor (DOL) show up at your door, you can quickly run a report to give them only the information they ask for. Having this information in a digital format is important because if a printed I9 form, for example, is tucked away in a personnel file along with multiple other records, the auditor may ask for the entire file folder. This means he or she will have access to any other information contained within the file and has the authority to examine everything. Even if the I9 form is accurate, but other items in the folder are deemed non-compliant, you could be fined.
Technology also helps with performance management by documenting reviews, employee training, benefits, disciplinary actions and more. Employee information and documentation is kept in a secure system and accessible via an online portal. Tech-savvy employees like that they can access information from home on their own time without having to bother HR, and it helps minimize human risk by allowing electronic signatures, password access and keeps data secure in the event of a fire, theft or other loss.
Another major aspect of company growth is the utilization of metrics. Technology provides analytics so you can see information such as how long it takes to fill job openings, productivity results, average length of service, turnover, cost of benefits per employee, what it costs to recruit and so much more. Metrics take away the guesswork and allow you to make strategic decisions based on real data.
Scaling HR with your business needs to be a two-pronged approach that involves both tactical and strategic initiatives to sustain long-term growth. Not every business has the capacity or resources to hire a dedicated HR professional, so they turn to an HR services provider to offer the guidance they need along with the ability to implement best practices, create employee engagement, ensure compliance and implement robust technology that can keep it all straight. If you’re not sure whether outsourcing some or all of your HR functions is right for you, check out the infographic below for some helpful insights.
As your business is grows, make sure your HR grows with it. Reach out to McClone for a complimentary HR Gap Analysis. We’ll help you discover areas of opportunity and help your business reach new heights.