The Basics for a Successful Human Resources Department

by: Sandie Hill Ferrigno of HR Alternatives

All companies - regardless of size - need some basic HR tools in order to run successfully. How does your company stack up? Do you have the basics covered?

• HR Audit

You may first want to conduct an HR Audit to see how you measure up. An HR Audit looks at everything to do with "human resources" - from your personnel files to your HR practices. This is a good way to ensure you are in legal compliance!

• Personnel File and Retention of Records

Accurate records need to be kept in case of an audit from the government. Certain records need to be kept for a set amount of time. Retention periods differ by agency and most records are subject to on-site audits by field representatives.

One record you need to have in place is a personnel file for each employee. This should be in a centralized location where you can file all the proper documents.

• Employee Handbook

When a business grows, so do the number and variety of personnel issues. Business owners no longer have time to handle all the questions. Thus, the need for written policies becomes apparent. One tool to assist you in this matter is an employee handbook. An employee handbook is not only good for you the employer, but is nice for the employee as well. The purpose of the handbook is to provide a reference for the employee. This document will typically answer their questions and provides them with a guide on the employer's expectations. This also assists the employer by communicating up-front what the policies are and what benefits are offered by the employer. A well-written handbook can also assist you in unemployment claims as well as litigation.

• Benefits Package

In today's tight labor market, offering competitive benefits is a must. Do you know what your competition is offering? If not, you may want to assess the market. A well-thought-out benefits package will assist you not only with recruitment but also with employee retention!

• Job Descriptions

Some companies don't take the time to write job descriptions but they really are essential! A good time to use the job description is early in the recruitment process. During the interview, one of the first things you want to do is to review the job description. This will give the potential employee an overview of their duties and responsibilities. This will also help you down the line when it is time to do a performance evaluation.

• Legal Issues

Do you know what laws you are subject to and obligated to comply? Increasingly, business owners are being required to know more and more when it comes to legislative issues. If past legislative trends are an indicator, you can expect even more legislation in the future. Not only do you need to look at federal law but also state law. Compliance with these laws for business owners has been quite a challenge.

From a human resources standpoint, there are so many things that can make your business run more smoothly. Described here are some basics that you will want to have in place. While it seems like there is a lot to do, in the long run, you will suffer fewer headaches and have a jump start on creating a more uniform HR approach.

Article submitted by Sandie Hill Ferrigno, PHR. Sandie is founding partner of HR Alternatives, Incorporated. She has over 20 years of human resources management experience specializing in the employment and employee relations areas. Sandie has provided consulting services for a wide variety of industries, which span from manufacturing, distribution, healthcare, nonprofit and service industries.