**Payroll is often an externally sourced function provided by a vendor partner for SMBs (small and mid-sized businesses). *A small business will not always have specialist HR roles. Focused on administration, payroll processing**, and other administrative tasks, as well as employee orientation, training, and pre-screen interviewing. Often responsible for HR teams of two or more, human resource directors may serve as the highest-ranking member of HR within a smaller company or a startup. Generalists in their roles, they do a bit of everything including benefits, compensation, recruiting and handling employee relations issues. HR Organizational Reporting Structure in a Small Business or Startup With that in mind, here are three examples of HR department team structures within an organization. Companies to which HR services can be outsourced, which are highly specialized, can cover all the needs that a small or medium-sized company may require. But that does not mean that a small one can benefit from it. This type of organization within the HR department occurs mainly within large companies. There is much less focus on compliance and administration and an organization with HRBPs typically has an HR shared services team or central department to support policy development and enforcement, benefits, and compensation. HR business partners have clients within the organization and provide resources focusing on the missions and objectives set forth by the organization. At some companies, this is where the supporting role of the Human Resources Business Partner (HRBP) comes in. The HR leader is not always on the executive team or considered the company board’s peer, yet they are responsible for reporting to the CEO as a trusted partner of the executive team. Starting with the head of a company’s HR department, we should clarify that what this role is and who this person reports to varies widely, most frequently based on the size of the company or the bandwidth of internally sourced HR responsibilities versus externally sourced tasks. Ultimately the teams that form the structure of your HR department will be determined by the business needs of your company. So for instance, one person or team focuses on training and development, another on issues that involve monetary transactions (salaries, compensation, benefits and so on), and another that deals with compliance and employee and labor relations. Regardless of the size of your organization, at a very basic level, the most effective way of organizing the structure of an HR team is to have individuals (or teams) that each specialize on key human resource functions. Structure of HR departments depend on the size of your organization, your industry and the speed of change within your industry, and whether or not the responsibilities of HR are sourced internally or externally. These changes mean that HR departments play a more strategic role within an organization, and that manager and director-level HR roles are interacting with the CEO, CFO or COO of the company.
This evolution has seen the creation of new positions like Chief Diversity Officer (CDO), Chief Human Resources Officer (CHRO), and changes in who the Vice President of HR or CHRO reports to. Responses also indicated that HR is taking sole responsibility for major policy decisions. According to a report produced by the Cranfield Network on International Human Resource Management in collaboration with SHRM called Human Resources Management Policies and Practices in the United States, 70 percent of responding organizations said HR has a place on the board of directors, and 66 percent reported having a written HR management strategy. The HR organization and HR departments are evolving from administrative departments that lead the transactional HR activities of record-keeping, payroll and employee benefits administration into teams led by C-level executives and directors who report to C-suite. What Does an HR Organization and Team Structure Look Like? If you’re handed a blank org chart to fill out for your company, how do you determine what resources you’ll need where? How do you develop your HR “dream team?” Here’s a resource on 6 advantages (and disadvantages) of a matrix organizational structure. What we haven’t covered in depth is the structure of these teams within your organization and setting up an organizational chart and workflow with these HR job descriptions.
BUSINESS FOLDER STRUCTURE DIAGRAM HOW TO
For a blog post series on Workology to help HR leaders and teams create better job descriptions, we covered the basics of what a job description is and what it’s used for, and put together a set of guidelines on how to write an effective job description posting and template.