HR Administration: What companies should know
HR administration is often perceived as cumbersome and time-consuming. At the same time, however, administrative tasks are indispensable, not least because they can have strong legal implications.
Many companies are therefore unsure when they need to hire HR staff specifically for HR Admin, when they should rely on external experts, and what they can do themselves. Our blog post is dedicated to exactly these questions and brings light into the darkness of HR administration.
- At what point do companies need an HR specialist?
- What tasks typically fall under HR Administration?
- What role do digitization processes play in HR administration?
- What special challenges does HR Administration bring with it?
- What role will artificial intelligence play in HR Administration in the future?
- Our HR Admin offers
1. At what point do companies need an HR professional?
As long as a company consists of only a handful of employees, there is usually no need for a separate position to handle administrative HR tasks. In young start-ups and small companies, employees are in direct contact with each other anyway, which is why a rather unbureaucratic way of working is the standard.
However, it is not uncommon for companies that recently consisted of just a few founders to be overtaken by their growth within a few months. Suddenly Excel lists become confusing, attendances and absences are not systematically recorded, certificates are not issued and the overview is lost. At the latest when the social security audit is due, many companies feel compelled to bring order to their files and processes.
But it’s not just rapid growth that can lead to problems. It can also happen that management makes mistakes in human resources in the course of change processes – not infrequently due to a lack of know-how. Problems are particularly frequent with regard to legal issues, for example in the case of terminations.
2. What tasks typically fall under HR Administration?
The HR Administration area can include both operational and strategic tasks. Operational tasks include, for example, preparing and adjusting contracts, issuing confirmations, writing certificates and handling payroll processes.
Strategic requirements usually arise in the course of restructuring and the establishment of systematic administrative processes. This requires HR experts with a holistic, analytical view, a good network (e.g., with legal experts) and the necessary overview of the landscape of digitization tools and software.
Depending on the size of the company and the complexity of the HR administration tasks to be performed, decision-makers have the option of bringing on board external HR Admin experts on a contract-for-work basis or in the form of employee leasing – or a combination of both. Companies should discuss which type of support makes the most sense individually with HR Admin experts.
3. What role do digitization processes play in HR administration?
Efficient HR administration is inextricably linked to the digitization of HR documents and processes.
The benefits of a digital infrastructure of documents include:
- Simplified access for employees to their own documents
- Streamlining HR processes
- Central document management
- Error avoidance
- General time saving
For a holistic digital solution, existing processes (e.g. in relation to payroll) must first be analyzed. Depending on the company’s specific circumstances and objectives, HR Admin experts can then propose and implement a suitable digital infrastructure in the form of HR software.
4. What special challenges does HR administration bring with it?
In addition to operational and strategic components, legal aspects in particular play a major role in HR Admin. In Germany in particular, companies have to comply with a great many legal and bureaucratic requirements.
Germany also stands out in comparison to its German-speaking neighbors with its large number of regulations. As inconvenient as this may be for companies, in view of regular file audits and the threat of fines for breaches of the rules, they must adapt to the circumstances and, if necessary, call on external HR Admin experts.
5. What role will artificial intelligence play in HR administration in the future?
Anyone who has studied the current advances in AI technologies can, with a little imagination, envision various concrete application areas in HR Admin. One might think in this context, for example, of the automatic creation of certificates.
In fact, however, there have long been tools that automate the creation of certificates to the greatest possible extent. Due to the strong legal component in many administration-related processes, it is also questionable whether there will be concrete use cases for AI automation beyond that in other HR admin areas – especially in Germany, which is so heavily regulated.
With this in mind, it seems more likely that AI technologies such as ChatGPT will act as a support rather than a replacement. Because HR admin experts could become more productive with such technological support, it is therefore conceivable that their job profile will be increasingly shaped by strategic tasks.
6. Our HR Admin offers
Every company has its own processes and requirements in its HR administration. At HR factory, we understand these different needs.
Our HR Admin packages are therefore structured in such a way that the right offer is also available for your company.
For HR Administration on point.