HR: more than a necessary evil: how an HR department can help your company thrive.

• Author: Ryther-Francom, Sarah

Your business is starting to take flight and you've hired your first batch of employees. But what tools and support, systems do those employees need to not just do their jobs, but to thrive? And as a company owner, what do you need to do to make sure that you've got your bases covered? To be an effective employer, it's time you consider forming a human resources (HR) department.

As a small company, starting an HR department from scratch may seem like an insurmountable task, but it's a chore that may free you from heartache in the future. The first step: hiring an HR specialist. An experienced HR specialist will keep your employees working and allow you to keep business running smoothly.

PROS AND CONS

Many small business owners think that the costs of hiring a HR specialist outweigh the benefits. But according to the Society of Human Resource Management (SHRM), small companies will reap heavy benefits when hiring an HR specialist. In fact, SHRM reports that small companies have some major advantages over large companies when it comes to HR. For one thing, an HR specialist in a small company is much more likely to develop a relationship with each and every employee. This relationship is key to attracting and retaining a valuable team. In its report, "The Varying Roles of HR," SHRM found that HR departments in small companies have greater capability to deliver HR practices, as well as are more apt to train and develop employees. The report also stated that HR departments in small companies are generally more responsive to their employees and that those employees, in turn, are more likely to contribute to the company's overall business strategy.

As a small company, however, you face one major disadvantage: cost. According to the Department of Workforce services, HR salaries vary greatly between $32,000 and go up to more than $80,000, depending on experience. So there's no question that adding an HR specialist to your payroll will cost you. The question now is whether the benefits will outweigh the cost, and the answer is usually yes. If you have an HR specialist who's managing employees effectively, you'll be able to see those employees' performance levels...