Tech Advice for HR Departments of One
HR departments that are managed by one person often say that some kind of technology is imperative for them to do their jobs. But the majority of business owners prefer not to spend money on HR. Therefore, leaving HR professionals to heavily rely on the technology and software the company already has provided to manage all HR functions.
Using technology that you already have may be convenient and financially attractive, but using technology that is not specifically for HR exposed companies to legal and tax issues. If you haven’t experienced a lawsuit because something wasn’t done properly, it’s hard to be aware of the dangers.
Smaller companies tend to have office managers that move into HR, unfortunately, an employee not properly educated on what is compliant versus not complaint and what information needs to be confidential. One mistake, even an unintentional one that you are not aware of, can get you into one big trouble. Spread sheets and accounting software are a good start, but an HR department shouldn’t consider this software as an HR solution. Regulations vary by jurisdiction and are ever-changing and departments of one often need help to make sure their HR activities are compliant.
Finding Help When Help is Needed
Software spreadsheets can be programmed to help with issues, but most people use software at the beginner’s level so they don’t know how to properly operate the technology and create an HR tool. However, there is a difference between creating technical solutions and HR solutions. There are other resources that a less expensive compared to hiring a full time HR position to make sure you company is in compliance. At the very least, supplying a handbook and guidelines to help employees get the companies basics met and to help mitigate risk.
In Payroll, So Many Dangers and So Little Time
Some companies process their own payroll rather than relying on financial software. However, processing your own payroll is very easy to mess up. If a company decides to use such software, and not a payroll service, at the very least someone with experience in the entire payroll process should review it. Most companies wind up using a payroll service because of the IRS or state regulations. There are pros and cons to each approach, and companies need to understand the advantages and disadvantages of doing work in-house compared to outsourcing. As a company you need to decide which path is more beneficial for your company.
States aggressively search for companies to make mistakes because that means fines, and fines mean revenue for the state.
How Confidential is Confidential?
Confidentiality is another risk. There is a great deal or risk when it comes to storing confidential information on your desktop or in the cloud. HR needs to be cautious when it comes to terminated employees, they could potentially access files on their computer. This could elicit sensitive information being leaked. It’s worth having a basic HR information system because it helps with compliance. For smaller companies, you need to save money, but there’s a point where risks overrides that, and protecting your companies information is more important.
HR departments of one often “don’t know what they don’t know”, and the complexities of HR have evolved immensely over recent years. Having a basic HR information system is worth having. Where s once hiring the 50th employee led owners to pay more attention to HR, today companies with fewer workers are turning to outsourcing for even basic tasks. From a risk standpoint it keeps you out of harm’s way.
In conclusion, for HR departments of one, it is important to have updated technology but also makes note on how important it is to not rely on such technology to solve all issues.. While you should be outsourcing your payroll, there are many other risks when it comes to HR. HR has evolved over the years and it makes sense to hire an outsourced HR partner as well. It is essential to have someone else checking your work to avoid fines, lawsuits and other problems that could harm the company’s future.
Investigations can be tricky to navigate, an HR professional should always be involved. If you ever have any investigation needs arise or questions, Converge HR Solutions has trained HR professionals that can handle the investigation process. You can call us at 610-296-8550 or email us at info@convegehrsolutions.com for assistance.
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