Your do-everything HR professional just left the bank. Now what? Does your bank’s human resources department consist of one person in charge of other important facets of the organization, such as payroll processing and accounting?

If this hits home for you, think about what happens if that person leaves your bank. You suddenly find yourself in need of solutions and quick. How you proceed can be a make-or-break decision for you and your organization.

You could choose to parcel out those functions to another person who likely already wears several other hats within the bank and add more to his or her already full plate. That may be a short-term fix but could end up causing more trouble than it is worth in the long run.

Hiring a replacement makes sense if you can find the right person and get them trained in short order. That in and of itself may prove difficult amid all of the hiring challenges employers have faced over the past year.

An optimist will be confident in the ability to overcome those challenges and find someone who will expertly handle HR and various other functions of your day-to-day operations. But you may take a more pessimistic view to prepare yourself for a worst-case scenario of that person ending up not being a good fit or leaving your bank for another job opportunity.

Then, you are right back where you started.

Why your bank needs HR

The field of human resources has become increasingly complex. In a broad sense, HR is an important component in how an organization’s culture is developed, reinforced and in some cases changed if necessary. Then, there are the responsibilities of attracting and retaining top talent.

Additionally, HR professionals are involved with pay, employee performance management, and understanding and correctly applying a myriad of employment law regulations. The latter has taken on an even greater significance during the COVID-19 pandemic, with frequently changing guidance on how or whether new laws will be applied — correctly to ensure compliance — in the workplace.

Is your bank equipped to handle sexual harassment and employment discrimination claims? How about wrongful termination or unemployment claims? These are among the various reasons why a dedicated HR professional should be considered essential and not a luxury for small and medium-sized businesses.

Too much is at stake for your bank to not take HR seriously.

The Society for Human Resource Management (SHRM) recommends employers take on a dedicated HR professional once the business reaches 15 employees. Perhaps you appoint an HR person or group of people in house. Maybe it’s a third party handling HR on behalf of your organization. In some cases, a mix of the two may make sense for your bank.

HR outsourcing is becoming an attractive alternative for Kansas banks. It takes many of your bank’s administrative tasks off your hands, which allows you to focus on growing the organization and serving Kansas communities.

An outsourced HR provider also can handle payroll processing, employee benefits administration and assist with your staffing needs. HR outsourcing also gives you a team of easily accessible and highly trained professionals who are always looking out for your bank.

Bank leaders who outsource their organization’s HR say they appreciate that the relationship is treated like a partnership, giving them added peace of mind yet doesn’t dictate how to run the organization.

Ultimately, you have to decide the HR structure that best fits the needs of your bank. But don’t leave one of your bank’s most important operational aspects to chance.