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Clark Schaefer Strategic HR's wheel of HR Services, including HR Strategy, Recruitment, Training & Development, Benefits & Compensation, Communications, Employee Relations, Recordkeeping, and Health, Safety & Security

Do I Need HR?

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HR Question:

As a business owner, how do I know when I should engage someone to help me with our human resources needs?

HR Answer:

The quick answer is the typical rule of thumb is to have one HR professional for every 100 employees. However, depending on the scope of the role and how proactive your organization is, this number may be more like 1.5 HR professionals per every 100 employees (Bloomberg Report).

But not all businesses have over 100 employees, and you can’t wait until you are at 100 employees to address human resources in your business. When you hire one new employee beyond yourself, your journey down the human resources lane begins.  It doesn’t necessarily mean you are ready to hire a full-time HR person; but rather, you need to do some basics to get your business in shape to have employees such as:

  • Setting up workers compensation
  • Obtaining a payroll solution
  • Posting mandated posters
  • Creating employee files
  • Developing a recruiting process
  • Creating an onboarding program and required forms
  • Setting up how an employee will be paid in compliance with various laws
  • Identifying benefits–not just health, but also holidays, PTO, and programs
  • Setting expectations for employees through policies in an employee handbook

Once you have your HR function set up, you may be comfortable handling your human resources function internally yourself, through your management team, or even an office manager. But, be sure you have a lifeline to an HR consultant and/or attorney to help you, should an issue arise.

As your business grows, you will also see other triggers that may tell you it’s time to get more formalized help with your HR function such as:

  • Business growth
  • Employee turnover
  • The need for more formal policies and procedures
  • Gaining or maintaining a competitive edge
  • Change that is impacting your employees
  • Conflict with responsibilities
  • Compliance

Compliance with federal, state, and local laws is critical for you to stay on top of as your business grows, which again is why it’s important to at least have a lifeline to an HR consultant and/or attorney.  Check out this general list of the federal labor laws by the number of employees you have on your team. This list links to details on the actual law.  But, there are also many unique state and local laws that may apply to your business too.

Too often, we see businesses wait until a problem occurs: if it isn’t broken, why fix it?  When it comes to HR, you are better to be proactive than reactive to avoid losing key employees, receiving penalties for violating a law, or litigation.

Strategic HR can help you with any of your human resources needs, whether you are hiring your first employee or your 1,000th.  With our customized, a-la-carte approach, we can support exactly what you need. We can conduct an analysis of your HR function, establish your HR function, become your HR function, or help with key components of HR.  Want to learn more? Request a Free HR Consultation.

 

 

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Employee Files

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Question:

I’m a new HR assistant in a company that hasn’t had an HR presence before. The secretary previously handled all of the personnel paperwork and the files are a mess. What’s the first thing I should do?

Answer:

Keeping employee files “clean” are a very important part of human resources. If you have inherited a mess we would recommend taking the time to review each file for completeness as well as ensuring all of the paperwork is in its appropriate place. The following is a guideline of documents that should be included in employment files as well as “where” they should be housed.

In general, a minimum of 2 files should be maintained for each employee. However, that number may increase based upon the number of actions for an employee. You will probably have an Employee Main File and an Employee Medical/Benefits File (i.e., benefit enrollment forms, profit sharing, 401(k), insurance claim forms, COBRA letter). In addition, separate files should be maintained for such documents as: Child Support Orders, EEO charges, Exit Interview, I-9 Forms, litigation documents, Workers Compensation claims, and Affirmative Action; however, a separate file isn’tnecessary for each employee.

Review your files and ensure the information is stored properly toavoid compliance concerns in the future.

What can go into the main personnel file?

• Application
• Offer Letter
• W-4 Form
• Nondisclosure Agreement
• Orientation and/or Termination Checklists
• Performance Appraisals
• Salary Information
• Official Performance Information (i.e., letters or memos)
• Payroll Data
• Tuition Reimbursement Information
• Copies of Credentials (i.e., certificates, license, diplomas)
• Sign off sheets / Policy acknowledgement forms
• Training information

What cannot go into a personnel file?

• Information related to medical, injuries, and disabilities
• Information disclosing affirmative action identification
• Applications that include non-job related information
• I-9 Form
• Subjective documentation and/or performance appraisals

What records can/cannot be kept together?
Typically, the following files are all kept separate:

• Employee File
• Employee Medical File
• Child Support
• EEO Charges
• Exit Interview Form
• I-9 Form
• Litigation Documents
• Workers Compensation Claims
• Affirmative Action

Recordkeeping can be a daunting task, especially once you get behind in filing. Keeping some documents accessible, but confidential is extremely important. Strategic HR has an easy to use desktop reference to assist with managing employee documentation and record retention. Visit our HR Store page to learn more about this handy tool.