Are you establishing a new start-up – but have no HR?
Establishing a business without a dedicated Human Resources (HR) department is fairly common, especially among small to medium-sized enterprises.
While the absence of an internal HR team can reduce overhead costs, it means you have to put extra work into thoroughly understanding New Zealand’s employment laws. This has to be done so your business stays compliant. You’ll also have to strategically allocate time and resources to keeping everything running smoothly.
Sounds like a lot of work? Don’t worry! In this article, we’ll guide you through understanding HR and employment laws, and how to navigate these while getting your business on its feet.
Understanding Employment Laws
New Zealand’s employment framework and legislation was designed to promote fair, and productive workplaces. Key Acts include:
Employment Relations Act 2000: This act emphasises good faith interactions between employers and employees, outlining the legal foundations of employment relationships.
Holidays Act 2003: This act provides employees with minimum entitlements to annual leave, public holidays, sick leave, and bereavement leave, ensuring a fair balance between work and personal life.
Health and Safety at Work Act 2015: Employers must also stay vigilant regarding health and safety regulations, ensuring workplaces are free from hazards. Detailed information on these obligations can be found on the WorkSafe New Zealand website.
Managing HR without an In-House Team
Managing HR on your own requires a strategic approach to ensure compliance, effective management, and smooth operations. Here are some key strategies!
1. Outsource HR and Recruitment
Consider reaching out to HR consulting organisations, or individual HR consultants. Experts provide specialised knowledge and advice on legal compliance, policies, hiring and recruitment, and organisational management. Consultants can also provide ongoing services over a long period of time, especially as your business continues to scale up.
On top of outsourcing general HR, outsourcing recruitment could also greatly benefit you. Working with recruitment agencies and consultants will streamline hiring, and implement effective onboarding processes. This will not only save you time, but also benefit your candidates and, talented new hires.
2. Utilise HR Software
Implementing HR management software can streamline tasks such as payroll processing, leave management, and performance tracking. These types of automations reduce administrative loads, and minimise errors. Furthermore, your employees being able to access these features digitally and on-the-go is extremely convenient for all.
Furthermore, you can also utilise outsourced payroll providers to manage wages, taxes, and KiwiSaver contributions. This will ensure that you don’t make any errors on your employee’s payslips, and avoid inaccurate or unnecessary deductions.
3. Talk to Employment Relations Specialists
Without in-house HR, working with reliable employment relations specialists ensures compliance with employment laws, and mitigates risks. Specialists can assist with employment agreements, dispute resolution, and contract terminations. Additionally, regularly reviewing policies with a specialist over time ensures you stay compliant, and well-protected.
4. Stay Informed
As we’ve mentioned, staying compliant with employment laws is crucial to avoid legal risks. Regularly review key legislation such as the Employment Relations Act, Holidays Act, and Health and Safety at Work Act to ensure contracts, leave policies, and workplace conditions meet current legal standards. A good resource for this is Employment New Zealand’s website, who also provide frequent updates and templates.
You could also consider subscribing to HR newsletters, employment news, and industry associations for relevant, expert insights. Attending webinars and workshops can also help you learn how to navigate and implement changes if they happen. Lastly, keeping accurate records is crucial to keeping things in order, as you are also legally required to keep them!
5. Training and Development
Providing training to your employees can be managed through online courses, external providers, and on-the-job learning. This can offer flexibility, and help your employees grow through practical knowledge.
To maintain continuous development, you could also track progress, and offer incentives for completed training. Regular feedback, clear goals, and recognition helps enhance employee motivation. Additionally, by leveraging digital tools and outsourcing where necessary, you’ll create a strong learning culture over time.
3 Key Benefits of Outsourcing HR
As we mentioned earlier, if you don’t have internal HR, outsourcing offers 3 great advantages:
1. Cost Efficiency: Hiring a full-time HR team can be expensive, especially if you know it’s not financially viable. Outsourcing allows you to access professional HR services on an as-needed basis, reducing overall costs, while ensuring essential functions like payroll, legal compliance, and recruitment are managed expertly, and effectively.
2. Expertise and Compliance: Employment laws are constantly evolving, and non-compliance can lead to legal risks and penalties. External HR providers stay updated on employment legislation, workplace policies, and industry best practices, ensuring you remain legally compliant.
3. Focus on Core Activities: Managing HR internally can be time-consuming, pulling your attention away from growth and strategic planning. By outsourcing, you can focus on scaling operations, enhancing productivity, and driving profitability, while HR experts handle the complex tasks like dispute resolution and performance management.
Conclusion
Operating without an in-house HR department is feasible with the right strategies and advice. By leveraging external expertise, staying informed about your legal obligations, and utilising technological solutions, you’ll be able to effectively manage your HR functions, ensuring compliance, and grow your business over time!
We can Help
At People Associates, our General HR/HSE Consulting and Employment Relations services are designed to meet the specific needs of your business no matter what stage you’re at.
Whether you’re a startup establishing core practices, or a well-established company refining your people management and safety strategies, we offer fully customised solutions tailored to you.
Want a free consultation?
Flick us a message here – or contact Lisa Oakley at lisa@peopleassociates.nz or on 027 573 5483.
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