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January 29, 2014
The Changing Face of HR
What does an HR director do?

In the past, HR directors or managers were in charge of payroll, keeping track of sick days and vacation days, and benefits for the employees.

Now, HR directors are more in charge of employee retention rates, training, hiring and firing, and finding the most qualified people for a specific role.

While they may still handle the administrative tasks, HR is focused more on the people and the improvement of the company.

With most companies leaning towards social media (think sites like LinkedIn and Google+) to find qualified candidates, it's important that the HR director understands social media and strives to learn more.

Do You Need an HR Director?
There are a few things to consider when deciding whether or not to hire an HR director.

First, do you have the funds available in your monthly budget to pay for one? If money's tight, now may not be the best time to hire one, at least full time.

On the flip side, since HR directors typically improve the success of your business, you may want to consider hiring one either part time or contracting the needs out, which is less expensive than hiring someone on full time.

Second, are you hoping to grow your business, or are you happy with where things are at?

If you are looking to grow, hiring an HR director is where you should start. You're more likely to grow and succeed by having the right people on your staff.

And finally, do you feel like it would be a weight lifted off your shoulders if you were no longer fully in charge of hiring, firing, social media, and growing your company?

Business owners typically wear 10 different hats — everything from marketing and accounting to growth and hiring. Having someone else take over the HR duties frees up your time to focus on other areas, if that's what you wish to do.

Cost of Hiring and HR Director
Financially, how much will it cost you to hire an HR director? And on the flipside, what could you potentially lose by not hiring one?

According to the Occupational Outlook Handbook, the average HR manager earned $99,720 per year in 2012. Top earners make more than $170,000 per year, and the lowest earners make $50,000 per year.

Keep in mind that these are averages, with mostly everyone having five or more years of experience. If you are a smaller business, you can always hire someone who has recently graduated for slightly less money.

On the flipside, your company will lose money by hiring a “bad hire,” or someone that is not a good fit for your company.

According to the U.S. Department of Labor, a bad hiring decision will cost you about 30% of their pay. If an employee makes $60,000 per year, for example, that will potentially cost you $18,000 if the person doesn't pan out.

The decision to hire or not hire an HR director is one only you can make.

Talk to others in the industry, weigh the pros and cons, and make a well-informed decision. Since it's going to cost you money either way, you'll want to be as prepared as possible.

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Sarah Brooks is a freelance writer living in Glendale, AZ with her husband and two daughters. She's passionate about writing, traveling, cooking and spending time with her family. Her writing topics include food and nutrition, travel, personal finance and small business. Sites she writes for include ripoffreport.com and those discussing college degrees.
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