Human Resources Guide For Small To Medium Enterprises

Without HR outsourcing, SMEs face a number of human resources tasks and should take into account the following types of activities:

1. The human resources area should be segregated from the rest of the enterprise in order to maintain privacy and confidentiality. The HR function should report to a high level person within the enterprise who is authorized to make decisions.

2. The person or persons in charge of human resources should handle the payroll functions either in-house or in coordination with an outside vendor. The distribution of payroll checks should be handled by HR.

3. All input for salaries, bonuses, employee benefits as well as changes to payment conditions should be handled by human resources.

4. All changes to salaries, employee benefits, time sheets, and vacation schedules should be handled by HR.

5. Any and all employee complaints, counselling and issues of controversy should be coordinated by the head of human resources and the applicable department within the enterprise. The higher level person that the HR area reports to must be immediately informed of these types of issues.

6. The head of HR should provide executive management with budgets, forecasts and other statistical reports that are necessary in order to run the enterprise.

7. Whenever staff are needed, the head of human resources should coordinate the needs of the enterprise with the interview and hiring functions.

8. Another important task for human resources is the compilation of a formal employment manual that all new employees and existing employees can refer to. This manual will need to be updated as changes to laws and regulations take affect.

9. All legal and regulatory reports must be prepared by human resources in order to comply with local requirements on a timely basis.

10. Employee benefits and salaries need to be reviewed on a periodic basis in order to retain and maintain proper levels of compensation.

11. The job specific training of employees must be monitored and controlled by HR for purposes of economy and quality of work.

12. Vacation and sick days must be controlled by human resources in order to maintain the level of days agreed upon.

13. Employee travel should be controlled and maintained by human resources for purposes of consistency and proper control of costs. All approvals need to be obtained and all travel documentation must be authenticated.

14. All labour union relationships and communications should be maintained by HR. However, the executive manager directly in charge of human resources must be notified of such communication.

The above tasks represent the core functions that human resources should be in charge of. However, other responsibilities may arise since the handling of people may involve other issues such as injuries, disabilities and circumstances that change on a day to day basis.

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