The addition of millennials into the workforce has caused businesses to reevaluate how they manage and support their employees. This change has brought with it the belief that “human resources” is an outdated term which should be replaced with “talent management.”
Related: Measure These 5 Talent Metrics for Greater Success in Hiring and Managing Employees
But, what some fail to grasp is that true talent management is a revitalization and extension of HR roles, and that HR’s core functions remain necessary for business success.
While talent-management programs may meet the varied expectations of a multigenerational business environment, HR operations must not be ignored. Mismanagement of these systems places you at risk of legal penalties and exposure to hidden costs that can damage your company’s reputation and profitability.
Lack of HR expertise
Entrepreneurs often underestimate the complexity of HR functions and the field’s requisite legal requirements. There are thousands of federal and state laws employers must meet, or face significant penalties.
The Affordable Care Act alone can trip you up in hundreds of ways. That’s why you need to hire or outsource this role to someone who understands these complicated laws and how they apply to your business. Otherwise, you could risk heavy fines.
Your HR system also performs critical employee monitoring, support and development functions. I asked Gary Corcoran, CEO at Advance Systems Inc., about this, and he said, “Today’s HR functions must be matrixed, yet fluid, to address the dynamic needs of modern businesses.
“These multifaceted processes,” Corcorn continued, “include individualized benefit options and career-development opportunities, to encourage employee satisfaction and retention. You need the ability to track and analyze employee data, including time sheets, vacation and personal days, bonuses and other personnel data functions that impact pay and document productivity.”
Fortunately, resources are available to support these processes. So, reduce your costs by using these resources to identify your company’s inefficiencies or needed staffing adjustments. The…