How to Create an Effective Human Resources Department from Scratch

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As your business develops and you start to scale up, it’s only a matter of time before you’ll have to employ additional personnel and set up an efficient HR team. And while you may feel overwhelmed at first, creating an effective HR department doesn’t have to be a daunting process. All it takes is a step-by-step approach and an organized plan to get you on the path toward success; before long, your HR machine will run as smoothly as possible.

What is an HR Department?

An HR department is a vital part of any business, large or small. It is responsible for overseeing key personnel-related functions such as recruitment, onboarding, payroll, employee benefits, and retention. It is also responsible for ensuring that all legal requirements are met and that the company follows good business practices.

Having a dedicated function to take care of these tasks ensures that all personnel-related matters are handled efficiently and appropriately. Not only that but a dedicated HR team will free up a substantial amount of time for other business activities that may otherwise be occupied by personnel-related tasks.

Step One: Establish HR Goals

The first step in creating an effective HR department is to establish goals. What do you want the department to achieve? What challenges must be surmounted in order to achieve success? Setting clear objectives will help ensure that everyone is working towards the same outcome – and will make it easier to measure progress later on.

According to McKinsey, an effective HR department should be the function that drives and maintains the identity of the compa… Read More

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