Even in a small business, HR and payroll is a very sensitive area that requires knowledge not only of the law but also of financial matters. Employee documents must be stored properly and all payroll obligations settled correctly. What other duties does the HR department have, and can you run it yourself?<\/p>\n\n\n\n
HR and payroll in a company is the area of activity related to managing staff and handling matters concerning employees' pay. It covers a number of tasks and processes, for example:<\/p>\n\n\n\n
Well-managed HR and payroll are key elements of how a company functions, because they concern the most valuable resource of any organisation: people. Proper staff management can help increase productivity, employee engagement and the company's operational efficiency.<\/p>\n\n\n\n
The HR and payroll department is usually run by HR and payroll specialists or a team of employees dealing with this area. These people may have different job titles, depending on the company's organisational structure and size. The HR department may be run by a specialist in <\/strong>HR, i.e. a person responsible for matters related to employment, recruitment, employee records, working time records, training and employee relations. The company may also employ a specialist in <\/strong>payroll, i.e. a person responsible for calculating employees' pay, settling payroll, calculating insurance contributions and taxes, keeping payroll records and answering employees' questions about their pay. In practice, HR and payroll is often entrusted to the firm that handles the company's finances.<\/p>\n\n\n\n Of course, it is possible to run HR and payroll yourself, especially in smaller companies or sole proprietorships. In many cases the business owner can manage staff and payroll matters on their own, particularly in the early stages of the business, when the company has few employees.<\/p>\n\n\n\n However, running HR and payroll yourself requires the right knowledge and skills, as well as time devoted to a variety of tasks related to staff and payroll management. A person who decides to run HR and payroll on their own should be aware of the following:<\/p>\n\n\n\n Running HR and payroll yourself may be feasible for people who have the right knowledge and skills and enough time and resources, but bear in mind that as the company grows it may become necessary to hire specialists or use external accounting firms.<\/p>\n\n\n\nCan you run HR and payroll yourself?<\/strong><\/h2>\n\n\n\n
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