Do Organizations Really Need An HR Department?
Sometimes the only thing worse than having an HR department is not having one.
With a sudden boom in the HR software industry it has become a lot easier to automate or outsource people related processes such as attendance, payroll and benefits.
So the big question is Can We Do Away with the HR Department and can the managers take up the HR role in the organization?
This article on the Wall Street Journal caught my attention and I thought of asking you and what is your take on the subject. Another thread on LinkedIn which takes a dig on this subject is a perfect read.
In 2012, U.S. employers had a median of 1.54 HR professionals for every 100 employees, up slightly from a low of 1.24 in the recession year of 2009, according to the Society for Human Resource Management. They earn a median annualized wage of about $51,000, government statistics show.
Think of the financial and strategic risks when you consider eliminating certain portions from the HR Department.
If we study the trends of last 5-12 years, many transactional jobs such as payroll, attendance management, recruitment, on boarding and benefits are already being outsourced by companies. Sometimes it does makes sense when you can have an outsourced expert who can do these jobs faster, better and cheaper, isn’t it?
As of now we see that HR has a core role to play in any organization, but how do we justify the existence of this role in the longer run?
Can non-HR Managers be trained to make HR related decisions pertaining to employees?
Can they keep pace with the ever changing legal and statutory laws? Or can we outsource them as well?
Some companies are planning to decide on doing away with the HR departments. Will this trend grow in the coming times?
Let me hear what you think in the comments section below.