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HR structure: the right setup for your HR department

There is a huge shortage in the labour market. Jobs are there for the taking and recruiters constantly make their move to attract new talent for a company. You might also be looking for reinforcement for your team, but of course you want your current employees to stay happy and commit themselves to the company with lots of motivation. An HR department with the right HR structure in your company gives you the tools to achieve your goals! We’re happy to tell you more about setting up an HR department, what the tasks of an HR department are and why it’s so important to create structure in HR within your organisation!

Structure in HR; why do you need it?

Many start-ups and small companies are known for their family-like atmosphere and the close bond employees have with each other. Everyone works closely together on tasks within the organisation, which means employees get to know each other better and better on a personal level. When the company grows and you need a new employee, you mainly look at whether the candidate fits the team and whether there’s a good connection.

As a company continues to grow, that very personal bond with the entire team will gradually fade. The atmosphere becomes more anonymous and there’s no direct family feeling with new employees. Different departments grow bigger and collaboration between departments becomes less close than in the early days of the company. To keep employees satisfied, communicate company goals clearly and hold conversations with employees, setting up an HR department is a great solution!

Setting up an HR department for more structure in HR tasks

The HR department handles all HR issues and tasks within the organisation. The HR employee(s) in the HR department are the point of contact for all employees, managers, directors and, if applicable, the works council. The HR department is responsible for deploying and promoting employees in the best possible way, with the goal of securing the success of the company.

The tasks of an HR department

The HR department works with different employees, both when attracting new talent and when developing current employees. For example, HR focuses on attracting new talent (recruitment), giving them a flying start (onboarding) and managing employees who leave the company (offboarding). We’ve listed a number of different tasks for you:

Selecting staff (personnel selection):

Recruitment is done through various channels to attract the most suitable talent for your company. Employer branding and different campaigns to attract talent also fall under this task.

Workforce planning and staffing needs:

This task ensures that your company has the right number of employees with the required qualities. Based on this, you work together to achieve goals within the organisation.

Workforce scheduling (personnel deployment planning):

By maintaining optimal workforce planning, the HR employee ensures that employees are deployed as efficiently as possible. This prevents understaffing or overcapacity.

HR administration:

This task covers all administrative and transactional HR tasks. Tasks within HR administration include keeping and storing contracts, calculating leave hours and processing mutations, onboarding and offboarding employees.

Employee development:

Performance management is an important task of the HR department to address weaknesses and encourage employees to build on their strengths. Tip: take a look at Personal development from HoorayHR to easily record and track employee development in the personnel file!

Employee loyalty:

One of the tasks of the HR department is to maintain employee engagement. This can include organising events, conducting employee satisfaction surveys and planning activities to create stronger connections!

People analytics:

Based on employee data, the HR department makes proposals for actions, which they then discuss with management. For example, this could involve tracking overtime, after which you might consider hiring a new employee.

Paying salaries:

The HR department is also responsible for paying salaries. They ensure that all employees receive their payslips on time and that payroll runs correctly.

Make it clear within your company what the HR department does!

It’s important to make sure employees understand and know what the HR department does. Make it clear that HR doesn’t just carry out administrative tasks, but also acts as a point of contact within the organisation. HR might already have a solution, but – especially in a large organisation – they can also make sure a conversation takes place between management and employees about a new role, a new activity or when there’s dissatisfaction.

All in all, the HR department is an important part of your organisation, committed to supporting employees and achieving company goals.

Ensure a suitable company structure!

When structuring the HR department, you set different goals for both current and future employees. A good start is half the battle, so it’s important to put your company structure in place straight away. To help you, we’ve listed a number of tasks:

Determine your organisation’s priorities

The first important task is determining your organisation’s priorities. A roadmap can help with this, after which you assign a level of priority to each task.

Which HR tasks will you outsource and which will you manage yourself?

It’s also important to decide which processes you’ll handle yourself and which you’d prefer to outsource. For example, will you choose an external HR administrator, or hire an employee? An HR employee will take care of HR administration in-house.

Payroll administration, for example, is a task we recommend outsourcing. A payroll administration package is usually a standard outsourcing option, but you could also look at an accountant or payroll administrator. This way, you make sure your payroll administration runs smoothly.

Looking for an accountant?  Discover our partners!

Define processes for a streamlined HR structure

There are various goals and processes within the HR department. Defining these processes is perhaps the most important step! Document the different processes and divide the tasks. Make sure the HR department knows how to handle employee data carefully and set clear priorities.

It’s also important to decide which channels you’ll use during the recruitment process. This way, you work in a structured way and create a clear goal within your organisation.

Choose to implement HR software

The final and perhaps most important task when structuring processes is implementing HR software. This ensures all information is stored securely and can be found in one digital place. Manage and store contracts or documents, streamline your requests and approve them easily, and optimise the entire HR process. With HoorayHR, you get an all-in-one HRM software solution that streamlines all your HR processes. We take a lot of work off your hands and make sure you face far fewer HR challenges. On our Discover page, we’re happy to tell you more about our HR software!

Ramon Glebbeek
Written by

Ramon Glebbeek

Expert in HR

Ramon is a true expert in HR, thanks in part to his many years of experience at HoorayHR. With a passion for writing relevant blog posts and knowledge articles about HR, onboarding, performance management, and more, he offers a unique perspective on challenges and opportunities in the field. As an experienced human resources professional and content writer, Ramon is happy to share tips to help you save time on HR tasks and build a Great Place to Work.