HR professionals

Since 2013, we have been celebrating HR Professionals day on the 26th September. This day celebrates the HR profession and the individual's professional development. 

With this in mind we wanted to take a look at how HR has changed over the years, and what could happen if you didn’t have a HR department within your business. 

If you need immediate advice on improving your HR department or processes, get in touch with one of our experts on 0800 141 3591. 

The history of HR 

The industrial revolution in the late 18th century had various impacts on business in the UK, and not all of it was to do with technological advances. It also signified the change in the relationship between employees and employers. 

As at the start of the industrial revolution, most businesses were small scale, where the business owner knew all of the staff they had on the rota. But as the industrial revolution took hold, factories and business grew beyond the control of the business owner. 

Due to the socialatal separations, employee grievances or feedback was either ignored or unheard. Which caused more and more workplaces to become more dangerous and dissatisfied. As employees grew tired of unfair labor and health and safety concerns, an American group called The Progression Movement was formed. They worked to address the issues the workforce were facing on a daily basis and implemented new legislation that would stop the ill treatment of employees and improve health and safety. 

As the legislation change was attempted, employers argued with them and resisted the statement of the workplaces needing to change. Another group called the National Cash Register co. was established as a response to strikes and employee walkouts. This group was also charged with handling any grievances, dismissals and safety issues within the business. 

The post war employment landscape 

After the war, businesses were required to have an employment manager. It was their job to handle recruitment, employee conduct and payroll. The idea was that this role would help re-ignite the economy and help boost stability. After the war the title ‘Personnel management’ was used as an umbrella term for individuals who handled welfare and employment management. 

In the 1980s, the phrase human resources was starting to become popular as an extension of personnel management. Human resources started to become more and more specialist in employee tasks, including compensation, employee relations, training and recruitment. 

The 1980s also saw the rise of digital technology usage in HR practices. This included utilising HR Information systems, storing employee information and payroll effectively, instead of keeping the information as hard copies. 

This paved the way for businesses to use companies like Croner to easily outsource their human resources responsibilities to other companies. 

Since the 2000s, Human resources was adapted to make it more people focused, wth the department also going by ‘people management,’ and ‘talent departments’. This was to signify the growing relationship between employers and employees to encourage more employee lead incentives and schemes. 

Today HR departments enforce employment law changes within the workplace while continuing to improve relationships between employees and employers. 

Life without a HR department 

Some employers may believe that HR departments are the root source of headaches, especially around employee tensions and employment law legislation changes. 

Many may have wondered why they need a HR department if everyone within the business seems happy. But without one there can be serious ramifications for your business, including employment tribunal claims. 

Let's take a look at the risks associated with not having a HR department. 

Employees can feel insecure 

Without a HR department it can cause your employees to become more uncomfortable at work. This can be caused by tensions and conflicts between employees, abuse of power, and conflicts in their personal lives. 

Without an effective structure in place to solve these issues, employees will be less likely to stay with a company, or feel that they can’t raise concerns, or speak to their manager about them. This will have an adverse effect on your employees productivity and overall well being. 

Employees may become stagnated 

A business's HR department isn’t just there to help solve conflicts between employees and ensure that the business remains compliant with employment law. They also help develop your businesses talent, this will help to prevent employees from becoming stagnant. 

As we’ve established, your HR department will be vital when it comes to improving your staff morale and general wellbeing - remember a happy workforce is a productive one. 

Increased legal issues 

Business owners will no doubt find themselves in breach of some employment law legislations. Especially if they are a growing business without a HR department to ensure you’re remaining compliant. 

Without the proper process in place for health and safety concerns, sick pay and holiday pay, businesses could find themselves dancing costly litigations at an employment tribunal or facing disruptive disputes. 

An effective HR department will help take this off the businesses owners plate. 

Tensions can be amplified 

Without a proper HR department in place, issues and conflict between your employees are left unchecked and unresolved. Even if the issue is considered to be a small one, it can snowball into something bigger and cause tensions to ripple throughout your business. 

A smooth working HR department will resolve these issues before they become more complex. HR departments can also help to prevent tensions between your workforce from appearing in the first place. 

Some of the most common failing on HR today are

• Unfair Dismissal. 
• Discrimination.
• Updating policies and documentation.
• Following the correct process in terms of redundancy, dismissal and disciplinaries. 

Get expert advice 

HR departments are paramount for businesses. They help businesses and owners avoid tensions between coworkers, protect businesses against employment tribunals and help to develop your employees throughout their career with you.

At Croner, we have been helping businesses for over 80 years with their HR and Health & Safety concerns. Our experts have on average 15 years of experience each, who go over contracts and documentation to ensure our clients are following best practices. 

For more advice, get in touch with one of our experts on 0800 141 3591.