Special provisioning for Human Resource consulting and setup for small businees and startups.
When a business reaches the stage where it starts hiring additional staffs, the first and most important initial department the company needs to create id HR, or Human Resources! Human Resources is responsible for managing employees personal data and needs , and is the foundation on which an expanding company is built.
How does one go about creating an HR department? we’ll show you how.
We will provide you with professional HR documentations and HR advisory support that your business needs at a fraction of the cost of an in-house HR personnel, giving you peace of mind, whilst you maintain control.
Lets proceed towards the building of most critical and complex department, who is responsible for the maintenance of most valuable resources of your organisation known as ..human capital!
WHY WE NEED ONE?
To begin you need to answer some basic questions , in other words, before you begin the task – you need to have a clear definition of the mission and goals of the HR department –
- What the expectations are of the manager who realized the necessity of HR function
- Why do you want to set one up?
- What’s changed to make you or the organization believe that an HR department is needed now?
- What do you want the HR department to do? How will this function contribute to the success and bottom-line of the organization? Will it add value?
Once you have clear direction, there are some key “AUDIT” issues that you need to focus on. As you begin the process, get some professional help, whether through networking with peers, other organizations, or outside expertise. It is a big task, but one that is critical to the organization.
- Do you have personnel files on all your employees? Are they current? Do you have all the legally required documentation? Do you have items in the files that don’t belong there?
- Do you have policies and procedures? Are they up-to-date? Are they followed?
- Do you have an employee handbook? Do you have the right language in it? Have you inadvertently created a contract between you and your employees?
- Do you have policies dealing with sexual harassment, workers’ compensation, safety, benefits, discipline, etc.?
- Are you in compliance with state regulations?
- Do you have a working knowledge of the law? Do you have all the required postings, forms, and documentation required by the respective governmental agencies? Are all the managers aware of their legal responsibilities and liabilities?
- Are you recruiting and selecting the right people? Are you aware of the talent and skills needed to move your organization forward? Do you know where to find these people? Are you recruiting in a cost effective manner? Are your managers trained in interviewing techniques?
- What kind of compensation plan do you have? Is it meeting the organization’s needs? Is it motivating your employees? Is it competitive and fair?
- How about your benefits? Are you getting the best coverage for your people at a price the employees and the organization can afford? Is your total compensation attractive enough to retain existing people and be an incentive to new people?
- What’s it like working at your company? Are people productive and motivated? Are you looking at the indicators of a productive and motivated workforce (absenteeism, tardiness, turnover, grievances, high workers 'compensation rates, poor quality, missed deliveries, and poor productivity)?
- What about your training? Are manager’s and employee’s skills current? Is training a “way-of-life”? Are you growing your people or do you have to go to the outside every time you need someone with a specialization? Are supervisors effectively managing their employees?
- Are managers and employees kept informed? Do they know what’s going on? Is the grapevine the main source of communication? What are the sources of communication?
STEPS TO ESTABLISH HR DEPT.
HERE ARE SOME USEFUL GUIDELINES TO SET UP HR DEPARTMENT
Stage 1 :
Review the current practices/policies [ if any]
Audit all HR activities that are performed [ even the crude format]
HERE ARE THE CORE HR KRAs [ key result areas]
KRA 1 : Recruitment/Selection
KRA 2 : Workforce Planning and Diversity
KRA 3 : Performance Management KRA 4 : Reward Management
KRA 5 : Workplace Management and Relations
KRA 6 : A Safe and Healthy Workplace
KRA 7 : Building Capabilities and Organizational Learning
KRA 8 : Effective HR Management Systems, Support and Monitoring
Stage 2 :
- Understand the organization
- Understand the organization structure
- Understand the organization systems
- Understand the organization politics/influential people
- Understand the organization/individual roles
- Understand the organization/positions
- Understand the individual job descriptions
- Understand the job/ job specifications etc…
Stage 3 :
- Discuss the values/beliefs with senior management/CEO and the need for HR department.
- Discuss the expectations from HR department -short/medium/long term.
- Discuss with CEO, the organization's corporate objectives/strategies and how HR can contribute to the corporate objectives.
- Discuss / seek consensus on organization structure / management process.
- Discuss the current organization culture with senior management.
- Discuss with CEO/senior management the core activities/competences and business drivers of the organization.
HR dept. is a support unit and hence must work closely with other depts.
Stage 4 :
Even though there is currently no HR department, there are a number of HR activities are being carried out now.
You have to know what they are / how it is being carried out / by whom.
To collect and consolidate these, you need to do a quick HR audit of the present situation.
AFTER gathering all the information's and summarized, one should sit down with the respective authority [ CEO or as the case may be] and discuss and prioritize the items, as follows :
- URGENT / IMPORTANT
- URGENT/ NOT IMPORTANT
- NOT URGENT/ IMPORTANT
- NOT URGENT / NOT IMPORTANT , BUT NEEDED DOWN THE LINE.
Stage 5 :
Please REVIEW the HR MANUAL ,as listed below .Pick points out of it, as per your need, based on your discussion/audit results. You may want to start up with -
- HR department Objectives HR department strategies
- Draft on Recruitment / Selection Procedure /Process
- Draft on organization / structure
- Draft on jobs' analyses/ job descriptions/ job specifications/competences
- Draft on payroll / compensation / administration
- Appointment /confirmation / Termination / resignation /PROCEDURES/PROCESS
- Induction program
- Orientation program
- Employee communications
- Training & development of the employees
- Performance Appraisals / management
Once the preliminary draft is ready, EMPLOYEE HANDBOOK can be initiated [LIST PROVIDED BELOW]
REVIEW THE HRM PROCESSES, MAKE A NOTE OF WHAT YOU THINK ARE IMPORTANT FOR THE COMPANY AND THE PRIORITY ONES
- HRM PROCESSES
- JOB DEVELOPMENT
- ORGANIZATIONAL BEHAVIOR PROGRAMS
- HUMAN RESOURCING
- PERFORMANCE MANAGEMENT
- HR DEVELOPMENT
- REWARD MANAGEMENT
- EMPLOYEE RELATIONS
- HEALTH AND SAFETY.
- HUMAN RESOURCE INFORMATION SYSTEM.
Stage 7 :
REVIEW THE HRM SYSTEMS , MAKE A NOTE OF WHAT YOU THINK ARE IMPORTANT FOR THE COMPANY AND THE PRIORITY ONES.
- HR strategic planning system
- Human resource planning system
- Manpower planning system
- Job profiling system
- Recruitment &selection system
- Performance appraisal system
- Performance management system
- People development systems
- Career planning and development system
- Succession planning system
- Job enrichment system
- Compensation planning and packaging system
To summarize the steps to set up an HR DEPT , the following things should kept in mind.
- Recruitment and selection (i.e. job descriptions, selection tools, background checks, offers)
- Compensation (i.e. methods, consistency, market)
- Employee relations (i.e. labor agreements, performance management, disciplinary procedures, employee recognition)
- Mandated benefits (i.e. social security, , worker's compensation, )
- Optional group benefits (i.e. insurance, time off benefits, flexible benefits, retirement plans, employee assistance programs, perks)
- Payroll (i.e. internal vs. external options, compliance)
- Recordkeeping (i.e. HRIS, personnel files, confidential records, other forms)
- Training and development (i.e. new employee orientation, staff development, technical and safety, leadership, tuition reimbursement, career planning)
- Employee communications (i.e. handbook, newsletter, recognition programs, announcements, electronic communication)
- Internal communications (i.e. policies and procedures, management development, management reporting)
After careful evaluation of each of the areas, any individual can make an HR department for their business/company that will keep any business running smoothly.