As a business owner, it is not enough to only have a business plan in place. In order to have a business run smoothly from top to bottom, every department must have a business plan. One of the first departments to focus on is the Human Resources (HR) department. This is because many of the compliance functions and hiring decisions are made from this department. It is the heart of any business in many ways and, as such, it should be treated with importance.
Just like a business needs a plan for success, so does the HR department. Real success for a business comes in the form of ensuring that all of the departments are working toward a common goal. The common goal is something that is outlined in the overall business plan. The department plan will look different for every department because they should all be working toward different goals, but at the end of the day, they should all still be working toward the ultimate goal of bringing the business together and making it better. Every business is different, and the HR business plan that is developed for one business may not be the exact same as it is for another business. As part of this process, it is important to analyze the needs of the specific business at hand. Another key component of this is that the Human Resources department should benchmark industry standards and requirements. Due to the heavy compliance requirements, this department is a bit different than many others within a business.
Another reason why it is so important to have an HR business plan is because every business wants to ensure compliance in all areas that require attention. The importance of this is that if this does not happen, the business could have a lot more trouble later on in the form of government fines or other penalties. Compliance is a big part of any business and HR department. If there is not a plan in place for things such as verifying that employees can legally work in the United States, minimum wage rules are met, and more, the business will be open to a lot of potential for risk. One way or another it will find you, and you will have to deal with it as a business if it is not kept up with from the beginning. By failing to take into account both the business and the regulatory needs of the department, you could be setting yourself up for failure before you even begin making your business profitable and successful. Do not make this mistake, like many other businesses have done, as it could end up costing you your business.
A common question during the process is, why is there a need for a separate plan for the HR department? A business plan is designed to outline the goals and processes for the business as a whole. It does not take into account how things should be managed by various departments. It is still important to have a business plan, but it should be understood that it is not a document that can take into account all of these other factors that are important to the growth of the business. If you take a look at your business plan, you will find that, most likely, aspects such as compliance requirements and regulations have not been included. There are many different parts of HR that need to be a priority for the department, and there should also be a plan in place to determine how the department will serve the business and the employees. This should not be included in the overall business plan because it would be out of place and it would not be directly tied to the department and the goals of that department. This is why it makes the most sense to ensure the two are separate with ties that bind them, and that the HR department has ownership of their plan.
Once the business plan is created, it is time to develop the HR business plan. To do this, it is important to ensure that all areas are examined and that the goals of the business plan are in line with the business. Use these steps to develop your own HR business plan for your business:
Once there is an HR business plan in place, the work is not over. Just like with a business plan, it is important to continue to revisit the HR business plan on a regular basis. As the business grows and as goals are met, there will be some components of the HR business plan that will need to be updated. The plan should outline how things will be run for a successful HR department, but it is not meant to be a static document. It is one that will grow with the company, meaning that it will need to be examined at least every two years. Sometimes there may be no need to make any changes while other times a lot of changes will need to be made. It will depend on a variety of factors such as whether or not the department has implemented new technology, whether or not employment laws have changed, and even how much the business has grown. As there are many factors that can play into this, it is important to ensure it remains a living document that is updated as needed.