I must at the very outset congratulate you for thinking about adding a HR function to your business.
I am sure that you practice a business philosophy which is what makes you succeed - meaning a vision, mission, ethics, integrity, goals, value creation, image - in terms of product performing in the market, etc., governing on the tone of behaviors, decision-making and priority-setting, as well as how communication is done internally and externally. Now this can be done best by you, however, if you are going to do this then what will happen to moving the business ahead, therefore, it is obvious that you are looking for a person you would want to engage to carry out these responsibilities, sharing your philosophy.
If you can relate, to this philosophy then go ahead with what ever is there in it for you.
This is by no means a comprehensive document. There is no limit to the creative solutions an organization can find to solve even its most challenging problems. Hopefully, you will find some advice herein that is relevant and helpful to your situation. You may find that you have additional ideas or advice, based on your own experience, which could be useful to others. This guide is simply a vehicle through which communication between such organizations can happen.
For any company to be successful it must have a philosophy that all business functions participate in, and so Human Resources Management is a prime position. (I'm not sure if still several business leaders would accept this truth). A good HR person can set the tone for any company to meet it's business goals and enable it meets all its responsibilities to all it's stake holders. Based on the vision and the chartered out mission, HR creates a conducive, and participative environment for all other business functions to incorporate in their day to day activities - beginning right from the top management down to production employees.
In our technology driven world, Human Resources has become an advanced science...an art, some would say. Any seasoned HR person could spout methodology on how to achieve best practices in trying to meet the "philosophy" originally intended. But such methodology does not necessarily apply to the small organization as they are in a class of their own, and face unique challenges when it comes to finding the right person for the right job at the right time.
If this is ascertained and a person found, the next step would be the “Functional competencies” that you would expect from a HR person. These are job-specific competencies that drive proven high-performance, quality results for a given position. They are often operational in nature.
Competencies are used in human resources in a variety of ways: they describe the traits and skills and behaviors for a job role, they are used to establish performance and development criteria for performance management, they are used in the assessment of candidates for a position, and they are used in the assessment of people for leadership and new roles.
The best-practices in competency management involve four categories of competencies: company values (core principles) which apply everyone, broad general competencies which apply to the entire company (e.g. communications, integrity, etc),
leadership competencies (characteristics and skills we expect of leaders in our organization), and functional competencies (job-specific skills which are very different from role to role).
Competencies can be used for assessment, hiring, training, leadership development, succession, and many other important purposes.
Each of these four types of competencies is used for candidate assessment, evaluation, coaching, development, and assessment of potential. Every organization therefore should develop competency models with the end goal in mind.
Based on this to go a little further, there are many important functions, however, there are three crucial areas which make HR leaders. One of the major ways HR creates the environment is by encouraging employees to become and continue to be top performers. A second way HR sets the tone is by developing a diverse group of employees. HR must develop and uphold policy on diversity and other issues. Third, team building is essential to fuse a diverse group of individuals.
In order for a company to reach its full potential employees need to be top performers as individuals and as cross functional groups. Employees should be invested into their position.
HR can take the lead
1. recruiting candidates that are a good fit for the company and show potential for growth. Hiring the new candidates to competitive salaries with benefits will make for happy employees who want to give their best. Using a workable performance review process, employees can gain an accurate assessment of their performance. Employees will be able to understand their performance levels and work on areas that need improvement. Management will also understand employees' desire for growth. HR therefore plays a lead role in performance benefits and giving positive feedback. In this way employees will be able to realize their potential and will be able to take deliberate actions to have more say in driving their chosen career paths.
2. HR can lead is by developing a diverse workforce. Equal Employment Opportunity which refers to employment practices that ensure nondiscrimination on the basis of gender, religion, region, physical or mental ability, or age etc. The principle behind this is that everyone should have the same access to opportunities. Any company worth its name needs to be flexible and adaptable to meet new customer needs, therefore by developing a diverse workforce a company can gain diverse views especially when it comes to problem solving. Managing diversity well provides a distinct advantage in an era when flexibility and creativity are keys to competitiveness.
3. HR is its team building function. Team building can lead to several positive standards and make clear work objectives. The company will gain good communications with participants as team members and individuals. Departments will increase productivity and product creativity. Knowing exactly what is expected, team members will become more motivated to reach their goals. Having strong communication through teambuilding will create a climate of cooperation and collaborative problem solving, this will also increase trust and support from all employees. In many companies there is wasteful spending because of a lack of communication. By having regular interaction between teams a company will have better operating policies and procedures that can reduce cost. It also help knowledge building and knowledge sharing.
In this fashion Human Resources is one that becomes the locomotive for the train called 'company.' of which the first compartment will be that HR will make sure the company the company recruits well qualified candidates and ensure that they become happy and well paid employees. The other HR functions - induction, performance appraisal, compensations and benefits, training and development, etc. will make for the other compartment that can run on the rails of your company built on your philosophy - a lean running company that employees love to work for because they are well taken care and in return they offer high productivity and creativity.
Having said this it will also be appropriate to get the right person on board
Characteristics of a through HR Professional
Well qualified, well read, well bred, excellent communicator with the ability to influence and persuade across all levels of the organization exercising a high degree of confidentiality, professionalism, poise, tact and diplomacy to accomplish objectives. Excellent written, verbal, and nonverbal interpersonal and communication skills. Solid interpersonal, project management and presentation skills. Has and maintains a high standard of integrity & ethics; is aware of the business that the company prevails in therefore is customer-focused, creative & innovative, disciplined; with a can-do attitude; aggressive in the pursuit of goals; results-driven; action-oriented, flexible and adaptable, change agent.
Going on a little further, looking into the future and your company if it wants to get ahead of the race, you will have to hire "smart matured HR person," one who is a self-starter; highly organized; with a knack of complex problem-solving; has a strong analytical brain; strong in strategic management, who has the ability to work well in a variety of environments, and work well under pressure in a racy, speedy, dynamic, time-sensitive environment with shifting priorities and multiple deadlines. Also has the ability to - be proactive and independently advances skills as required to meet rapidly-shifting job requirements in a fluid but rapidly-growing organizational environment. One who can steer away from complacency, by effectively challenging and enhancing the professional development of others within the organization, at all levels drawing on an appropriate balance of assertiveness, tact, and respect.
.・ Possesses extremely good Communication Skills (Spoken/Written)
・ has Self-Awareness
・ is Proactivity
・ can Multi-Task
・ has the Ability to Prioritize
・ is Enthusiastic
・ has Integrity
・ Works well in teams
・ has Good self-organization and Organizational Awareness
・ is Effective in Problem Solving
・ has Self-Awareness, Proactivity
・ has the Ability to Influence
・ is Effective in Decision Making
・ shows Learning Agility
・ is Technical savvy
・ finally, is likeable by all.
It was lengthy, but I hope it clears up into several issues, as some honorable members have already raised some valid questions to stimulate the thinking process.
Best wishes..