Human resources management business is considered as a growing field and will go mainstream in the future. For some companies and organizations prefer to outsource their human resources management stuffs in order to reduce their costs and to get other benefits. Some businesses run as human resources consultancies who can provide services that help businesses to develop or streamline their human resources practices. Actually in order to run such a business, you need to understand clearly about the requirements as well as have a strong commitment. The following paragraph will be discussed about the requirement of running human resources management business, other important recommendation as well as some steps for motivating your business to be a successful one.
A Short Introduction of Human resources management business
A. About Human Resources Management
Human resource management (HRM, or simply HR) is the management of an organization’s workforce, or human resources. It is responsible for the attraction, selection, training, assessment, and rewarding of employees, while also overseeing organizational leadership and culture, and ensuring compliance with employment and labor laws. In circumstances where employees desire and are legally authorized to hold a collective bargaining agreement, HR will also serve as the company’s primary liaison with the employees’ representatives (usually a labor union).
HR is a product of the human relations movement of the early 20th century, when researchers began documenting ways of creating business value through the strategic management of the workforce. The function was initially dominated by transactional work such as payroll and benefits administration, but due to globalization, company consolidation, technological advancement, and further research, HR now focuses on strategic initiatives like mergers and acquisitions, talent management, succession planning, industrial and labor relations, and diversity and inclusion.
In startup companies, HR’s duties may be performed by trained professionals. In larger companies, an entire functional group is typically dedicated to the discipline, with staff specializing in various HR tasks and functional leadership engaging in strategic decision making across the business. To train practitioners for the profession, institutions of higher education, professional associations, and companies themselves have created programs of study dedicated explicitly to the duties of the function. Academic and practitioner organizations likewise seek to engage and further the field of HR, as evidenced by several field-specific publications.
B. Human Resources Management Business
Before, most of the companies have their own Human resources management office or department but today everything has changed. Human Resources management office or department costs the companies a lot and the companies try to cut down the cost. They started to outsource the Human Resources Management stuffs to other business that could handle it. This is the start of Human Resource Management Business. Human Resources Management business is growing and it’s good for those who are interested in launching this kind of business since the market is not yet overcrowded.
Starting Your Human resources management business
Starting up a business is challenging especially those who start particular business that requires a big amount of knowledge. To run a human resources management business, you need to follow some steps below:
Step 1: Get your degree first
You should have got or graduated with a degree in business with human resources management specialization. Anyway, being a Human resources professional capable of consulting or managing Human Resources Management business, your MBA might be needed.
Step 2. Get a Certification in Human Resources
You should also have taken an exam to get a certification from Institute of Human Resources. The certification should be included Professional in Human Resources and Global Professional in Human Resources.
Step 3. Start your own Company
You should create a particular legal entity for you own business. For example limited liability partnership that is complete with licenses and tax registration.
Step 4. Get Insurance
Buy professional liability insurance for your business to protect yourself as well as your business from any un-expectable mistakes and un-predicted events.
Step 5. Build Network
Create a network of other Human Resource professionals who you might need to persuade to work with you in the future.
Step 6. Start Bigger
If you are looking to start as more than one-man operation, you should secure small business financing or investor.
Step 7. Define Your Target
Figure out which industries that you think they are the best for you. These may be based on the kinds of companies you’ve worked for in the past or perhaps industries that are dominant in your area. Whatever you choose, it’s important to narrow down to level at which you feel you can succeed.
Step 8. Market Your Business
Meet businesses you know which are looking to undertake a major HR initiative or which might be beneficial to you from outsourcing their HR functions. New businesses that may not be able to afford a full-time HR department may also be interested in your services.
Step 9. Following Up Clients
Develop proposals for the services you will provide as clients become interested. They’ll want to see exactly what doing business with you entails and how it will benefit them.