| Without HR outsourcing, SMEs face a number of | | | | compilation of a formal employment manual that all |
| human resources tasks and should take into account | | | | new employees and existing employees can refer to. |
| the following types of activities: | | | | This manual will need to be updated as changes to |
| 1. The human resources area should be segregated | | | | laws and regulations take affect. |
| from the rest of the enterprise in order to maintain | | | | 9. All legal and regulatory reports must be prepared by |
| privacy and confidentiality. The HR function should | | | | human resources in order to comply with local |
| report to a high level person within the enterprise who | | | | requirements on a timely basis. |
| is authorized to make decisions. | | | | 10. Employee benefits and salaries need to be |
| 2. The person or persons in charge of human | | | | reviewed on a periodic basis in order to retain and |
| resources should handle the payroll functions either | | | | maintain proper levels of compensation. |
| in-house or in coordination with an outside vendor. The | | | | 11. The job specific training of employees must be |
| distribution of payroll checks should be handled by HR. | | | | monitored and controlled by HR for purposes of |
| 3. All input for salaries, bonuses, employee benefits as | | | | economy and quality of work. |
| well as changes to payment conditions should be | | | | 12. Vacation and sick days must be controlled by |
| handled by human resources. | | | | human resources in order to maintain the level of days |
| 4. All changes to salaries, employee benefits, time | | | | agreed upon. |
| sheets, and vacation schedules should be handled by | | | | 13. Employee travel should be controlled and |
| HR. | | | | maintained by human resources for purposes of |
| 5. Any and all employee complaints, counselling and | | | | consistency and proper control of costs. All approvals |
| issues of controversy should be coordinated by the | | | | need to be obtained and all travel documentation must |
| head of human resources and the applicable | | | | be authenticated. |
| department within the enterprise. The higher level | | | | 14. All labour union relationships and communications |
| person that the HR area reports to must be | | | | should be maintained by HR. However, the executive |
| immediately informed of these types of issues. | | | | manager directly in charge of human resources must |
| 6. The head of HR should provide executive | | | | be notified of such communication. |
| management with budgets, forecasts and other | | | | The above tasks represent the core functions that |
| statistical reports that are necessary in order to run | | | | human resources should be in charge of. However, |
| the enterprise. | | | | other responsibilities may arise since the handling of |
| 7. Whenever staff are needed, the head of human | | | | people may involve other issues such as injuries, |
| resources should coordinate the needs of the | | | | disabilities and circumstances that change on a day to |
| enterprise with the interview and hiring functions. | | | | day basis. |
| 8. Another important task for human resources is the | | | | |