We all know that HR departments are necessary for seamless business growth and for handling matters including evaluations, recruitment, employee management, among other responsibilities. A South Africa-focused study published on ResearchGate.net highlights that changes at an organisational level and patterns of employment have a dramatic impact on HR policies. However, this is not always the case, as not all HR departments are properly trained on business structures.
What do we mean by business structures?
Business structures essentially define the flow of business across an organisation. It determines roles, indicates who reports to whom, establishes decision-making delegations, and aligns everything in the big picture overall. Entrepreneur.com lists the five types of South African Business Structures as sole proprietorship, partnership, proprietary limited company, public company, and franchise. Of course, every type will have key differences that will set them apart from each other.
For instance, you will also need to establish whether the business registered as a propriety limited company or a Pty Ltd is regarded as a separate business entity. This means that shareholders are not typically held liable for taxes or debts. From a digital perspective, you will also have to check if the domain has already been taken by another company and that all the information included on the website details the exact business entity you’ve established. You can do this by using a business name generator on Namechk.com. This is very important so that you don’t mislead people and you also need to consider that other structures might not enjoy the same benefits, but will be advantageous in other ways. Propriety limited companies also differ in structures around the world – which is why HR departments must know the ins and outs of the relevant structure.
What role does HR play in maintaining business structures?
At a foundational level, HR teams are responsible for hiring capable employees for each open position, which helps maintain an organisational structure. Think of it as installing the right gears in a well-oiled machine. This, in turn, facilitates company growth as well as the growth of individuals involved in the business. HR departments must also understand the organisational structure to align resources and strategies. Likewise, the structure directly impacts a company’s ability to retain HR talent.
In terms of the structure of HR departments, it really depends on the size of the organisation, the industry, and your company’s pace. According to SBA.thehatford.com, 54% of small business handle HR in-house. But as a company grows, it’s best to find qualified professionals that are well-trained to properly handle HR issues. Beyond dealing with difficult employees and complaints, HR strengthens company culture and boosts the overall productivity of a company.
Current Trends In HR And Its Role In Businesses
Here at HRFuture.net, we emphasize the importance of being able to change your strategy and adapt to the ever-changing market to encourage your business to thrive. That said, learning how to navigate the current trends in HR and use them to your advantage will be crucial. For example, the great resignation has been a persistent trend in the workforce in recent years. This has given way to the rise in small businesses, and structures such as sole proprietorships, partnerships, and propriety limited companies.
For businesses and HR teams, there are many ways to go about this problem. Some have resorted to improving workplace diversity, equity, and inclusion, and others have begun to upskill and provide more opportunities for employees to improve retention. Moving forward, it’s foreseen that HR will continue to play an essential part in honing how business structures will change, especially now that most companies have adopted a sort of hybrid work environment.
Conclusion
All in all, HR teams have a wide range of responsibilities. How you organise your HR department and the people in it will have a big impact on how they align with your broader business strategy. It’s crucial to think about the culture or vibe you want people to have there, as these things can affect their job performance. As technological advances become more commonplace in the workplace, the function of HR staff is changing. Rather than just being for HR tasks, their work impacts the overall success of a business.
HR Future Staff Writer
