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No HR department? Here’s what you can do

An effective HR department can provide tremendous value to an organization. It handles difficult or complex employee issues and is also in charge of talent recruitment for the company.

These days, however, having an internal HR department may not be very practical for companies anymore, especially for start-ups. Many organizations are just too small or not sufficiently funded to afford a dedicated HR department or professional.

While it is still important to assign a person to coordinate HR duties, companies can make do with cutting down on the responsibilities through automation tools.

Here are 4 reasons why you should rethink the need for having an HR department:

1. You can hire an HR professional on a project basis

There are times when you’d need the help of a professional to create or update the employee manual, sexual harassment or social media policy. However, you don’t need an entire HR department for that. You can hire an experienced HR consultant to review what you have and draft a manual or policies that will also get reviewed by a lawyer.

By doing so, you get the expertise you need without having to spend on a monthly salary & benefits. Plus it will be better for the company’s bottom-line in the long run.

2. You can get tools for staff management

There are plenty of HR tools in the market to help you manage absence management, time tracking, performance reviews, and a lot more. You can get data and analytics from your people processes to give you insights and help grow your business.

Usually, these are time and effort-consuming tasks for an HR department, but you can easily automate them with various tech tools.

3. You can automate payroll

It usually takes a lot of time and extra resources for a company to manage its own payroll. There are several payroll software in the market that help speed up every aspect of the payroll process, with a range of automated features.

You can quickly monitor employee attendance, create payslips, or update employee taxes with the payroll software’s auto functions.

4. You can use employee referral software for recruitment

Recruitment is a key function of an HR department. These days, however, there are software like Firstbird that can help you manage all your referrals in one place.


You can easily create a company account and invite Talent Scouts who will share your job openings to their networks. You can monitor and manage all recruitment activities from within the program.

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