How to run a more efficient HR department?

As any good HR professional knows, the HR department usually wears many hats and sometimes carries a heavy load. Outside of everyday administrative tasks, such as payroll management, processing sick days and vacation requests, and ensuring all paperwork is in order, the HR department is also entrusted with helping the business grow and achieving its goals — all while supporting the employees’ wellbeing and mental health.

This is a big undertaking for any team, but it becomes even harder for small companies and startups, who barely have their business off the ground — where a fully realized HR is nowhere to be seen. This does not mean that they cannot run an efficient HR department, simply because they don’t have the time or manpower. It just means that they need to look at it from a slightly different point of view. 

For instance, one way of improving efficiency in HR for SMEs is to outsource any big task that may become a burden. If your company doesn’t hire employees that often, why not use a recruiting firm to take that task off your plate? With Recruiters LineUp it’s even easier to find the best search firm in your area or niche, to help support your recruiting efforts. Here are additional ways to run an efficient HR department:

Set clear goals and expectations

The main aim of human resources management is to make sure your team runs efficiently and subsequently contributes to the company’s success. As we’ve discussed, there are many ways of accomplishing that, but first and foremost, there needs to be an achievable and measurable set of goals. This may sound like a basic requirement, but it still needs to be said.

In small companies and especially in startups that may shift their focus often, while the Founder and CEO may know their goals and company mission, the employees are not always aware of them. Taking the time to set goals for each department, as well as the HR department itself, is the start of improving efficiency in HR. Creating a handbook that conveys those goals, and maps out guidelines, policies, and expectations accordingly, is also advised. This will ensure your employees will know what they are getting into.

Adopt new technologies

There are so many tools out there to make your life easier, so why not take advantage of them? The most obvious one is an all-inclusive HR management software, which can automate anything from hiring to retiring. But if you don’t have the time for a large integration project (or the money), you can still choose to use a tool to streamline just one task in your HR department, such as payroll, or employee performance. Think about it as another form of outsourcing. You’re investing a sum of money now, which will save you money later, and will ensure there is one less thing to worry about. 

Encourage employee engagement

A company’s most valuable resource is its employees. If they are not productive, then the organization will ultimately fail. One way of ensuring results is punishing your team if they fail to meet their goals. However, this method is not sustainable in the long run. A better approach to ensuring productivity is by promoting engagement and therefore enhancing your human resources management.

An efficient HR department will organize team activities and after office hours events to build-up the company culture. Another suggestion is to turn pitching into competitions, to bring in a sense of fun. You can offer rewards for meeting goals, like taking best-performing employees out for lunch or organizing a trip for the team that beat the deadline. Development opportunities are also something to consider, which will serve your bottom line as well as your employees’ happiness. Talk to your team members and ask them what kind of benefits will make their life easier and incorporate that into your HR strategy.

Embrace feedback

The best way to run an efficient HR department is to make sure we learn from our mistakes. And the best observers of our mistakes are our employees. Make sure you incorporate regular performance reviews into your strategy, weekly, if possible. But more than that, it’s important that you make it clear to your staff that they can come to you with any issue or concern and they will not be penalized for expressing their opinion; on the contrary, that you encourage them to speak up. 

You can also use an employee engagement tool, which not only helps recognize issues that need to be addressed but also opens lines of communication between you and your staff, for better human resources management.