How to Build a Strong HR Team

The role of Human Resources (HR) has come a long way from just handling paperwork and payroll. The HR function, often referred to as the people department, plays a key role in business growth, helping to shape strategies and align employee goals with company objectives. This shift highlights the people department’s crucial role in driving overall success and making a real impact on the organization.

In 2024, being able to analyze and interpret HR data has been critical. HR analytics and data-driven decision-making has allowed HR professionals to understand workforce trends and employee performance better. This approach has helped HR make informed decisions, predict future needs, and develop strategies that boost employee engagement and retention. Data-driven insights are key to optimizing talent management and driving continuous improvement within organizations.

By using advanced technologies like artificial intelligence and automation, HR can make processes smoother, improve the employee experience, and stay on top of changing regulations. Digital tools help HR create more efficient workflows, offer personalized support to employees, and keep up with the latest labor laws.

For organizations looking to build strong HR teams, here is a comprehensive guide that offers a strategic roadmap for success. 

1. Establishing Clear HR Functions and Roles

In order to setup a strong HR department from scratch, it is crucial to define clear functions and roles. Without a well-structured HR team, there’s a risk of overlapping responsibilities, which can lead to inefficiencies and missed opportunities. 

By creating role clarity and aligning HR functions with the company’s strategic goals, organizations can ensure that each team member knows exactly what is expected of them and how their work contributes to the overall success of the business.

Function Identification within HR Teams:

When identifying key HR functions in 2024, it’s essential for organizations to address critical questions to ensure their team aligns with organizational goals and the evolving workforce.

Consider these key questions:

1. What are our current and future talent needs?

Identifying required skills or potential shortages will shape recruitment and employee development strategies.

2. How do we define success in employee performance and development?

Clear performance expectations and growth paths are essential for effective performance management and employee progression.

3. What is our strategy for retaining top talent?

Understanding what drives employee satisfaction, whether compensation, benefits, or career growth, will guide retention efforts.

4. How can we create an inclusive work culture for hybrid and remote teams?

Fostering engagement for all employees, regardless of their work environment, is crucial in today’s flexible work models.

5. What are the compliance risks we need to address in 2024?

HR must stay ahead of evolving labor laws and data protection regulations to mitigate legal risks.

6. How can we leverage data and analytics for smarter HR decisions?

Using HR analytics to gain insights into workforce trends enables informed decisions that improve HR strategies.

By addressing these questions, organizations can ensure their HR teams are equipped to drive business success and remain agile in today's dynamic landscape.

Role Definitions within HR Teams:

Once these functions are clearly defined, it’s crucial to align them with specific HR roles. This ensures every aspect of human resources building and management is covered, and there’s no duplication of effort.

Here are some key HR roles that organizations have defined in 2024:

As the company grows, the HR department must evolve to meet new demands. For example, a small company might combine several HR functions into one generalist role, while a larger organization may need specialized HR roles for each function. Scaling HR roles is about understanding where the company is heading and adjusting the HR structure to support that growth.

2. Identify Internal Talent Interested in HR Roles

When organizations face rapid growth, restructuring, or the need for an immediate HR presence, turning to internal talent can be an effective solution. Instead of hiring externally, leaders can quickly identify employees who already demonstrate leadership, communication, and problem-solving skills.

By conducting a simple internal talent review, organizations can find employees who are already trusted by their peers and show potential for roles in employee engagement, relations, or recruiting. By adopting this strategy, a strong HR team can be set up quickly while retaining continuity and leveraging existing talent.

Assessing HR Potential:

When reviewing potential candidates for HR roles, look for:

• Communication Skills: Ability to clearly articulate and mediate between staff
• Problem-Solving Abilities: Natural inclination to handle conflicts and suggest solutions
• Leadership and Empathy: Capability to engage and motivate peers while understanding their concerns

Steps to Conduct an Internal Talent Audit:

• Create a Skills Inventory: Review current employee roles, competencies, and performance reviews to identify those who have demonstrated leadership, collaboration, and organizational skills.
• Survey Managers and Team Leads: Ask managers to recommend team members who have shown interest or potential in areas such as conflict resolution, mentorship, or communication qualities that are critical for HR functions.
• Use Assessment Tools: Implement competency assessments or personality profiling tools (e.g., Myers-Briggs, DISC) to evaluate interpersonal skills, leadership qualities, and emotional intelligence. These are vital for handling employee relations and engagement.

Developing Existing Staff for HR Roles:

• Training and Development: Once potential employees are identified, provide targeted training in key HR areas such as recruiting, compliance, and employee engagement. This can be done through HR excellence programs or corporate in-house training.
• Job Shadowing: Allow employees to shadow current HR professionals or work with external consultants to gain hands-on experience.
• HR Generalist Approach: In smaller teams, hiring or developing a generalist who can manage multiple HR functions (e.g., payroll, recruiting, and employee relations) can accelerate the process and increase efficiency.

3. Recruiting HR Talent with Growth Mindsets

When recruiting HR talent, focus on candidates with a growth mindset, adaptability, and tech savvy. These traits are essential for building a forward-thinking HR team capable of handling dynamic environments.

Key Indicators to Consider While Recruiting HR Talents:

When recruiting HR talent, prioritize candidates with a growth mindset, adaptability, and tech-savviness are the key traits for building a forward-thinking HR department in a company. 

To assess a growth mindset, ask about how candidates handled challenges and used them to learn and improve. Look for resilience and continuous self-improvement. 

For adaptability, explore how they’ve managed shifting priorities or high-pressure situations, focusing on their ability to remain calm and adjust quickly. 

Lastly, to evaluate tech-savviness, discuss their experience with HR software and digital tools, ensuring they can leverage technology to streamline processes and make data-driven decisions.

Customize the interview questions to align with the organization’s specific needs and goals. By focusing on what truly matters to the organization, you’ll find HR professionals who are not only a great fit but also capable of making a significant impact in the modern landscape.

4. Build a Multi-Disciplinary HR Team

A multidisciplinary HR team is essential for business success in today's dynamic environment. Employers can address diverse workforce challenges by bringing together specialists in key areas like training and development, employee relations, and HR technology. This approach helps businesses stay agile, manage employee needs effectively, and leverage technology to improve efficiency. 

Diverse Expertise for Comprehensive Solutions

A multi-disciplinary HR team offers diverse expertise, providing comprehensive solutions to address a variety of workforce challenges. Learning and Development specialists focus on upskilling employees, while Employee Relations professionals ensure higher engagement and retention. HR Technology and Analytics experts leverage data to streamline operations and guide decision-making. This collective expertise helps align long-term strategic planning with daily operational needs. 

For example, HR Analytics drives forward-looking strategies, Compensation and Benefits manage payroll and operational tasks, and Talent Acquisition addresses immediate hiring needs while preparing for future talent demands. Together, these specialists create an agile and effective HR function that can adapt to evolving business demands.

5. Implement a Comprehensive Compliance Framework

To ensure legal compliance while building an effective HR team, organizations must establish a robust compliance framework that addresses all applicable labor laws, data protection policies, and workplace safety regulations. This process starts with identifying the legal obligations specific to the industry and geography where the business operates.

Next, the HR team should collaborate with legal experts to draft and implement clear policies that cover everything from hiring practices and employee classification to remote work arrangements and wage compliance. Regular compliance training is essential for both HR professionals and management to stay informed about regulatory updates. Conducting periodic audits to review internal processes and identify potential legal risks can further strengthen compliance efforts.

Additionally, an internal system for tracking compliance deadlines and a protocol for addressing violations should be in place to avoid costly penalties and preserve employee trust. By taking these proactive steps, the HR team can ensure that legal compliance is embedded in the organization's culture.

Key Compliance Areas for 2024:

• Labor Laws: New legislation on remote work, minimum wage adjustments, and employee classifications are expected to impact HR practices
• Data Protection: With rising concerns over data security, ensure compliance with GDPR, CCPA, or any new regional data protection laws
• Workplace Safety: Review and implement health and safety regulations that continue to evolve in a post-pandemic workplace

Immediate Action Plan: Compliance Checklist:

• Stay Updated: Subscribe to newsletters or hire legal counsel to stay informed on 2024 changes in labor laws and data protection regulations
• HR Policy Review: Ensure all HR policies regarding hiring, harassment, and termination are updated to reflect the latest laws
• Training: Provide ongoing training for HR teams and managers on new labor and privacy laws. Make sure they know how to apply these regulations in daily operations
• Regular Audits: Schedule compliance audits, reviewing job descriptions, contracts, and employee records to ensure adherence to the latest standards
• Documentation: Maintain detailed records of all HR activities including hiring, performance evaluations, training etc to protect against potential legal disputes
• HR Technology: Implement compliance management tools to track updates, employee training, and audit schedules, reducing human error

Regularly consulting with employment law specialists to review and update organization’s policies ensures they align with 2024 labor and data protection laws. By proactively addressing these areas, the organization can minimize legal risks, stay compliant, and create a safe, positive workplace for everyone.

6. Take Inputs from External HR Experts for Immediate Impact

Leveraging external HR expertise in 2024 is a strategic move for businesses looking to address critical HR gaps without overburdening their internal teams. As HR functions grow more complex, many firms turn to external consultants or outsourcing partners to handle areas like compliance, talent acquisition, and administrative tasks.

These experts bring specialized knowledge that helps companies stay updated with evolving labor laws and best practices, ensuring they mitigate risks while maintaining operational efficiency. By outsourcing routine tasks such as payroll and recruitment, internal HR teams can focus on core business objectives and long-term strategies, enhancing overall organizational performance.

In addition, external HR partners often utilize advanced technologies like AI and analytics to streamline processes and provide valuable insights, helping organizations make data-driven decisions. This collaboration allows businesses to remain agile and competitive in a fast-changing market, making external HR expertise a vital tool for growth and operational success.

Key HR Functions to Outsource:

• Compliance Audits: External HR consultants can handle labor law audits, ensuring your organizational policies are up to date and reducing legal risks
• Talent Acquisition: Outsourcing recruitment streamlines hiring processes, bringing in top talent while your internal team focuses on strategy
• Payroll and Benefits Administration: These complex, time-consuming tasks can be efficiently managed by third-party providers, ensuring accuracy and freeing up internal resources

Outsourcing doesn’t mean giving up control. To stay aligned with the business goals, set clear KPIs for the external HR team and maintain regular communication. This way, organizations can ensure accountability while allowing external experts to handle daily HR tasks efficiently.

7. Developing an Agile and Accountable Culture within HR

Developing an agile and accountable HR team is crucial for organizations aiming to stay competitive in this ever-evolving market.

Agile HR focuses on flexibility, allowing teams to respond quickly to changing business needs through short, iterative work cycles (sprints) and continuous feedback. This approach ensures HR can quickly adapt to talent demands, shifting employee expectations, and new workplace challenges.

Accountable HR ensures teams are held responsible for delivering measurable results, with clear goals and metrics that align with business objectives. 

Combining agility with accountability allows HR teams to drive meaningful change while maintaining consistent performance, ultimately supporting the company's growth and success.

Key Steps:

• Agility: Break projects into smaller tasks, track progress in short sprints, and use regular feedback to make quick adjustments.
• Accountability: Set clear goals with KPIs (e.g., employee turnover, time-to-hire), and empower HR teams to make decisions in real-time.

Best Practice:

Adopting a Sprint-Based HR Model allows HR teams to handle projects more efficiently by breaking them into 2-4 week cycles, or "sprints." This approach helps tackle tasks like recruitment or training in focused bursts, ensuring faster and more tangible results.

Daily check-ins keep everyone aligned, ensuring progress is made, and any challenges are addressed immediately. After each sprint, the team reviews what worked and what needs improvement, allowing for continuous adjustments and quick responsiveness to business needs. This method keeps the HR team agile, accountable, and always aligned with the company's strategic goals.

8. Choose the Right HR Technology for Better Operations

HR technology plays a pivotal role in helping organizations manage their teams more effectively, especially as businesses grow and face increasing complexity. Automation, AI, and analytics are now essential tools that streamline HR operations, enhance decision-making, and improve employee experiences. These technologies help manage everything from payroll and recruitment to employee engagement, allowing HR teams to focus on strategic priorities rather than routine tasks.

With the rise of hybrid work models and the demand for more personalized employee experiences, choosing the right HR technology is critical. Leading platforms like SAP SuccessFactors, UKG Pro, and Workday offer comprehensive solutions that support talent management, compliance tracking, and workforce planning. These systems not only increase efficiency but also ensure that HR teams can adapt quickly to changes, making them indispensable for businesses looking to scale.

By integrating automation, AI, and analytics into your HR operations, organizations can simplify processes, make smarter decisions, and create a more engaging and efficient workplace. This strategic approach meets the current HR needs and prepares organization for future challenges and opportunities.

9. Create Clear Metrics for HR Success

Tracking clear and measurable metrics is crucial for strengthening HR teams and aligning their efforts with business goals. 

Metrics such as employee turnover, time-to-hire, employee satisfaction, and learning and development progress provide valuable insights into the effectiveness of HR strategies. These key performance indicators (KPIs) help leaders make informed decisions, identify problem areas, and improve HR processes.

With advanced HR technology available, real-time data can now guide quicker, more strategic adjustments to workforce management. Setting and monitoring these KPIs ensures that HR teams stay agile and responsive, contributing directly to the organization's overall success.

Key KPIs to Track:

• Employee Turnover: Measure the rate at which employees leave the company to understand retention challenges. Reducing turnover leads to immediate savings in recruitment and onboarding costs.
• Time-to-Hire: Track how long it takes to fill open positions, which indicates the efficiency of your organizational recruitment process. Improving this metric speeds up talent acquisition and boosts team productivity.
• Employee Satisfaction: Use surveys to assess morale and engagement levels. Immediate insights from these surveys help HR address workplace issues and improve retention.
• Learning and Development: Monitor participation in training programs and assess their impact on employee skills and performance. Clear data on this helps organizations quickly adjust training initiatives to maximize employee growth.

Framework for Setting Up and Tracking KPIs:

• Define Clear Objectives: Set specific, measurable goals for each KPI (e.g., reduce employee turnover by 10% or shorten time-to-hire by 20%).
• Leverage Technology: Use HR tech platforms to automate data collection for real-time KPI tracking and analysis. Platforms like Workday or UKG Pro can provide immediate insights into HR metrics.‍
• Regular Review and Adjustment: Analyze KPI data on a regular basis (e.g., monthly or quarterly) to identify trends and make adjustments. This ensures your HR team stays aligned with business goals.

10. Develop HR Best Practices & Processes that are Consistent and Growth-oriented

Effective HR documentation is essential for ensuring consistency, legal compliance, and supporting growth. Using HR tech platforms like Workday, SAP SuccessFactors, and Paycom can streamline these processes, providing immediate benefits for your organization.

• Automating HR Documentation: By automating routine tasks like offer letters, performance reviews, and contracts, HR teams can reduce manual effort and eliminate errors. Platforms like Paycom can automate these processes, saving time and allowing HR to focus on more strategic initiatives.
• ‍Ensuring Legal Compliance: Automating documentation ensures that all employee records are accurate and compliant with labor laws. By tracking updates and actions, your HR team can avoid legal risks and maintain proper documentation with ease.‍
• Using AI and Analytics for Documentation: AI-powered tools help organize and analyze employee records, providing insights into performance trends and compliance gaps. Analytics tools in platforms like Workday allow HR teams to track key documents and ensure evaluations and policy updates are completed on time.
• ‍Digital Document Management: Switching to digital document systems increases efficiency, enabling HR teams to access records instantly. This enhances decision-making, improves collaboration, and ensures documents are consistently maintained and up to date.

By automating HR documentation, organizations can immediately reduce workload, improve compliance, and ensure all records are centralized and accessible. This creates a more efficient HR process, allowing your team to focus on supporting growth.

11. Conduct Skills Audit of the HR Team

For organizations looking to strengthen their HR teams, conducting a skills audit is a crucial first step. This process helps identify gaps in both technical and interpersonal skills within the team, allowing for targeted development. 

Begin by setting clear objectives, whether it's to improve talent acquisition, compliance, or leadership capabilities. Gather a comprehensive skills inventory through performance reviews, feedback, and job role analysis.

Next, assess these skills using self-assessment surveys, interviews to evaluate communication and leadership abilities, and technical tests for areas like HR technology and compliance. 

Analyze the data by creating a skills matrix that highlights strengths and weaknesses. From this, develop customized development plans, including training, mentorship, and on-the-job learning.

Implement the plans and track progress, adjusting as needed to ensure alignment with business needs. Regularly review and update the skills audit to ensure your HR team stays adaptable and prepared for future challenges.

This strategic approach ensures continuous growth and alignment with organizational goals.

Conclusion

Strengthening your HR team in 2024 requires creating a positive, productive work environment grounded in a clear organizational culture and mission. Succinct HR processes, including the use of a Skill Matrix, and regular reviews of strategies ensure your team continues to evolve with changing needs. Investing in targeted corporate training and HR Excellence Programs helps HR professionals enhance their skills, adaptability, and strategic thinking.‍

Edstellar provides customized training solutions tailored to each organization's unique needs, aligning HR teams with company goals, driving innovation, maintaining compliance, and boosting employee engagement. This approach, coupled with tools like the Skill Matrix, helps HR teams navigate the evolving business landscape effectively.