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HR Setting Up Process
HR Setting Up Process
HR Setting Up Process
If you were given the task of setting up a new Human Resource Department in a small company
where would you begin? Such a task would be extremely daunting, but not impossible, if you
follow a few tips. To begin, you need to answer some basic questions:
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?
In other words, before you begin the task, you need to have a clear definition of the mission
and goals of the department and secondly, what role you will play as head of the HR function.
Once you have clear direction, there are some key audit issues that you need to focus on.
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 dont 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 organizations 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?
Whats 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 workerscompensation rates, poor quality, missed deliveries, and poor
productivity)?
What about your training? Are managers and employees skills current? Is training a way-oflife? 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 whats going on? Is the grapevine
the main source of communication? What are the sources of communication?
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.
When Is An HR Department Necessary?
How many employees should a company have before there is a need for an HR Department? As
companies grow, there is a need to administer the HR function, but that doesn't necessitate an
HR Department. In fact, 30 years experience has shown that until the company has at least 50
employees, that "department" -- really a function -- can consist of or be handled by one person.
Between outsourcing such things as payroll and the initial writing of an employee handbook,
and with the plethora of software for HR today, one person should be able to develop and
administer the function.
Of course, there are variations to this theme. In some companies where recruiting has been a
major activity, there may well be a need to have an HR administrator or recruiter. But in most
small companies an Office Manager can suffice.
STEPS TO ESTABLISH HR DEPT
The first step is to determine what the expectations are of the manager who realized the
necessity
of
HR
function.
After that, determine the compliance issues which pertain to your company. The most basic of
these have to do with wages and hours of work, classification of employees, leaves of absence
including maternity leaves, harassment, and others.
Then, determine whether or not you need to have an employee handbook or other formal
policies and procedures manual to cover everything from establishing the company as an at-will
employer to benefits. If a handbook already exists, be certain that it is in compliance with state
regulations and that the policies and the way they are written are in the best interests of the
company.
Are all the basic policies included? These can be thought of as grouped into conditions of
employment, benefits, and disciplinary processes. Is there a balance between stated corporate
and employee rights and obligations?
Take a look at existing employee files or, if no files exist, gathering all the papers into coherent
personnel files. Minimally, you should have an Application for Employment form or resume, ,
any insurance forms that the employee may have signed, and performance appraisals.
Who takes care of payroll? There used to be an ongoing fight between HR and accounting as to
who gets payroll.. So make sure of this point to have a clear picture on this.
One person should be responsible for new employee orientation. In order to inform new
employees of their benefits and the policies of the company, you will very simply have to be the
expert in benefits and policies of the company.
HR has an information function that you should think through. Changes in policies, changes in
benefits, even changes in laws must be communicated to all employees. Major changes may call
for training such as in harassment a few years back. Therefore, HR becomes a kind of passthrough in the information cycle.
To summarize the steps to set up an HR DEPT, the following things should kept in mind.
1) Recruitment and selection (i.e. job descriptions, selection tools, background checks, offers)
2) Compensation (i.e. methods, consistency, market)
3) Employee relations (i.e. labor agreements, performance management, disciplinary
procedures, employee recognition)
4) Mandated benefits (i.e. social security, , worker's compensation, )
5) Optional group benefits (i.e. insurance, time off benefits, flexible benefits, retirement plans,
employee assistance programs, perks)
6) Payroll (i.e. internal vs. external options, compliance)
7) 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)
9) Employee communications (i.e. handbook, newsletter, recognition programs,
announcements, electronic communication)
10) Internal communications (i.e. policies and procedures, management development,
management reporting)
Once you have carefully evaluated each of these areas, you are ready to put together your
strategic human resources business plan. This will help you map out exactly what you need to
do and how it impacts the bottom line, plus when you will need to do it. With a good grasp on
this plan, you are ready to sell it to management
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
KRA
KRA
KRA
KRA
KRA
KRA
KRA
1
2
3
4
5
6
7
8
:
:
:
:
:
:
:
:
Recruitment/Selection
Workforce Planning and Diversity
Performance Management
Reward Management
Workplace Management and Relations
A Safe and Healthy Workplace
Building Capabilities and Organisational Learning
Effective HR Management Systems, Support and Monitoring
STAGE 2
Understand
Understand
Understand
Understand
Understand
Understand
Understand
Understand
the
the
the
the
the
the
the
the
organization
organization structure
organization systems
organization politics/influential people
organization/individual roles
organization/positions
individual job descriptions
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.
TO GET A GOOD START AND HOLD YOUR CREDIBILITY, YOU NEED THESE
INFORMATIONS TO START YOUR WORK ON HR DEPT.
GET A COPY OF CORPORATE PLAN, WHICH OUTLINES THE COMPANY'S
VISION
MISSION
CORPORATE OBJECTIVES
CORPORATE STRATEGIES
etc
HR dept. is a support unit and hence must work closely with other depts.
STAGE
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 A QUICK HR AUDIT OF THE
PRESENT SITUATION.
AFTER you gather all the informations and summarized, you should sit down with your
boss [ CEO] 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 you have the preliminary draft ready, you can start with your EMPLOYEE HANDBOOK
[LIST PROVIDED BELOW]
STAGE 6
REVIEW THE HRM PROCESSES, MAKE A NOTE OF WHAT YOU THINK ARE IMPORTANT FOR
THE COMPANY AND THE PRIORITY ONES.
HRM PROCESSES
HR AUDITING
HR BUDGETING
Strategic HRM Planning
HR Strategies and Policies.
HR and change management.
Competency-based HR
Knowledge management
JOB DEVELOPMENT
Job analysis
Job Role
Job Description.
Job specifications
Job enrichment
Job rotation
RECRUITMENT/SELECTION
Recruitment
Selection
Induction
Orientation
ORGANIZATIONAL BEHAVIOR PROGRAMS
Employee engagement
Motivation
Organization culture
Organization development
ORGANIZATION
Org. designing
Org. structuring
Org. development
Job / role structuring
HUMAN RESOURCING
HR planning
Manpower planning
Succession planning
Talent management
PERFORMANCE MANAGEMENT
Performance appraisals
Performance managing the processes.
HR DEVELOPMENT
Org. learning
Training
Education
Development
Training evaluation
E-learning
Management development
Career planning /development.
REWARD MANAGEMENT
Job evaluation
Managing reward process
Administration of rewards
Benefits
EMPLOYEE RELATIONS
Organization communications
Employee communications.
Staff amenities
HEALTH AND SAFETY.
OHS
A TEMPORARY HR DEPARTMENT
ONE HR MANAGER [YOURSELF]
ONE TRAINING MANAGER
ONE SALARY ADMINISTRATION MANAGER
ONE RECRUITMENT /SELECTION MANAGER
DISCUSS THIS WITH THE SENIOR MANAGEMENT, SEEK THEIR APPROVAL/ BLESSINGS
/SUPPORT
PREPARING A HR MANUAL IS IMPORTANT. NOT ALL THAT IS LISTED HERE MAY BE NECESSARY
AT FIRST.
DISCUSSING WITH SENIOR MANAGEMENT AND IDENTIFY THE PRIORITY ONES AND WORK ON
THEM.
HR MANAGEMENT MANUAL
Human Resources Policies, Procedures and Forms
Table of Contents
ADMINISTRATION
ADM.101
Personnel Records Activities
1.0
Employee Information
2.0
HR Personnel Records
3.0
Contents of Personnel Files
4.0
Employee's Personnel Records Review
5.0
6.0
7.0
8.0
Forms
Ex1
Ex2
ADM.102
1.0
2.0
3.0
4.0
Forms
Ex1
ADM.103
1.0
2.0
3.0
4.0
Forms
Ex1
Request For Document Change (RDC)
ADM. 104
1.0
2.0
3.0
4.0
5.0
Forms
Ex1
ADM. 105
1.0
2.0
3.0
4.0
Forms
Ex1
Important Message
ADM.106
1.0
2.0
3.0
4.0
5.0
6.0
Forms
Ex1
Ex2
ADM.107
1.0
2.0
3.0
Separation Activities
Resignations
Involuntary Terminations And Layoffs
Terminations For Cause
4.0
5.0
Termination Meeting
Additional Information Resources
Forms
Ex1
Exit Interview Checklist
Ex2
Exit References Authorization
ADM.108
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
11.0
Forms
Ex1
Suggestion Form
ADM.109
1.0
2.0
3.0
4.0
5.0
6.0
Forms
EX1
EX2
ADM.110
1.0
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
2.0
3.0
4.0
HIRING PROCEDURES
HRG.101
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
Forms
Ex1
Ex2
Ex3
Ex4
Ex5
Ex6
Personnel Requisition
Offer Letter
Personnel Change Notice
New Employee Hiring Checklist
Employment Eligibility Verification .
Employees Withholding Allowance Certificate.
HRG102
1.0
2.0
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
3.0
Forms
Ex1
HRG103
1.0
2.0
2.1
2.2
2.3
2.4
2.5
2.6
3.0
Forms
Ex1
Ex2
Employment Application
Employment Application Supplement
HRG104
1.0
2.0
3.0
4.0
5.0
Forms
Ex1
Ex2
HRG105
1.0
2.0
3.0
4.0
Forms
Ex1
Ex2
Ex3
Ex4
Compensation Procedures
COM101
1.0
2.0
3.0
3.1
3.2
3.3
3.4
3.5
4.0
4.1
4.2
5.0
5.1
5.2
5.3
6.0
7.0
Payroll Activities
Payroll Records
Timesheets
Payroll Deductions
Worker's Compensation Insurance
Social Security & Medicare
State Income Tax
Earnings Tax
Tax Withholding Payments
Payroll Adjustments
Advances
Garnishments
Paychecks
Direct Deposit
Lost Paychecks
Final Paychecks
Vacation Pay
Additional Information Resources
Forms
Ex1
Ex2
Ex3
COM102
1.0
2.0
3.0
4.0
5.0
5.1
5.2
6.0
Forms
Ex1
COM103
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
COM104
1.0
2.0
3.0
4.0
5.0
6.0
7.0
Forms
Ex1
COM105
1.0
1.1
1.2
1.3
1.4
1.5
2.0
3.0
3.1
3.2
4.0
COM106
1.0
2.0
3.0
4.0
6.0
7.0
Development Procedures
DEV101
1.0
2.0
3.0
4.0
5.0
6.0
Forms
Ex1
Training Plan
DEV102
1.0
2.0
3.0
Forms
Ex 1
DEV103
1.0
2.0
3.0
4.0
DEV104
1.0
2.0
3.0
4.0
5.0
6.0
Forms
Ex1
DEV105
1.0
2.0
3.0
4.0
5.0
6.0
Appraisal Discussion
Salary Adjustments
Appraisal Conclusion
Additional Information Resources
Forms
Ex1
Ex2
DEV106
1.0
2.0
2.1
2.2
2.3
2.4
3.0
4.0
5.0
6.0
Forms
Ex1
Disciplinary Notice
Compliance Procedures
CMP101
1.0
2.0
2.1
2.2
2.3
3.0
4.0
5.0
6.0
7.0
Forms
Ex1
Ex2
Ex3
Ex4
Ex5
Doc
Doc
Doc
Doc
Doc
CMP102
1.0
2.0
3.0
4.0
5.0
6.0
Background
Who Is Covered?
Employment Issues
Public Accommodations
Enforcement Of The Act
Additional Information Resources
CMP103
1.0
2.0
3.0
4.0
5.0
6.0
7.0
Forms
Ex 1
Ex 2
CMP104
1.0
2.0
3.0
4.0
5.0
6.0
General
Prohibitions
Authorized Use Of Prescription Medicine
Drug Awareness Program
Disciplinary Actions
Additional Information Resources
CMP105
1.0
1.1
2.0
3.0
4.0
Management
Privacy Standards
Medical Records Maintenance
Medical Records Access
Additional Information Resources
Forms
Ex1
CMP106
1.0
2.0
3.0
4.0
5.0
Unacceptable Behavior
Complaint
Corrective Measures
Enforcement
Additional Information Resources
INTRODUCTION
PURPOSE
SCOPE
WRITTEN COMMUNICATION
Non-discriminatory language
Active voice
Action verbs Plain English
FORMAT AND CONTENT
Effective Date
Department
Summary Of Functions
Essential Duties And Responsibilities
Grouping Several Tasks Into A Single Responsibility
Responsibility Statements
Delegated Responsibilities
Organizational Relationships
Reporting Relationships
The Organizations Environment
Qualifications
Mandatory Requirements
Key Selection Criteria
Physical Demands
Work Environment
Job Performance
Job Descriptions
Reasonable Accommodation
Accessibility
Employee Handbook
SECTION 1
1.0
1.1
1.2
1.3
1.4
1.5
1.5.1
1.5.2
1.5.3
1.6
1.6.1
1.6.2
1.6.3
INTRODUCTION
The Company Philosophy
The Company Mission
Equal Employment Opportunity Policy and Affirmative Action Plan
Employment-At-Will
Sexual Harassment
Safety
Safety Rules
Hazardous Wastes
Reporting Injuries and Accidents
Drug Free Workplace
Prohibitions
Drug Awareness Program
Disciplinary Actions
SECTION 2
2.0
2.1
2.1.1
2.1.2
2.1.3
2.1.4
2.2
2.2.1
2.2.2
2.2.3
2.2.4
2.2.5
2.2.6
2.2.7
2.2.8
2.2.9
2.2.10
2.3
2.3.1
2.3.2
EMPLOYMENT
Personnel Administration
HR Personnel Records
Contents of Personnel Files
Employee Information
Employee's Request for Review of Personnel Records
Management Review of Personnel Files
Service
Employee Categories
Job Posting Procedures
Employment of Relatives
Employment of Minors
Promotions
Transfer of Employees
Separation of Employment
Work force Reductions
Probationary Period
Extra Income
Process Improvement
Employee-Management Forums
Employee Suggestion Program
SECTION 3
3.0
3.1
3.1.1
3.1.2
3.1.3
3.1.4
3.1.5
3.1.6
3.1.7
3.1.8
3.1.9
3.1.10
3.2
3.2.1
3.2.2
3.2.3
3.2.4
3.2.5
3.2.6
3.2.7
3.2.8
3.2.9
3.2.10
3.2.11
3.2.12
3.3
3.3.1
3.3.2
3.3.3
3.3.4
3.3.5
3.3.6
3.3.7
3.4
3.5
3.6
3.7
SECTION 4
4.1
4.1.1
4.1.2
4.1.3
4.1.4
4.2
4.2.1
4.2.2
4.2.3
4.2.4
4.2.5
4.2.6
4.3
4.3.1
4.3.2
4.3.3
4.3.3
4.4
4.4.1
4.4.2
4.4.3
4.4.4
4.4.5
4.4.6
4.4.7
4.4.8
4.4.9
4.5
4.5.1
4.5.2
4.5.3
4.5.4
4.5.5
4.5.6
4.5.7
4.5.8
4.6
EMPLOYEE RESPONSIBILITIES
Work Schedules
Working Hours
Salary Employees
Hourly Employees
Clean Work-Place
Legal & Ethical Conduct
Ethical Standards
Conflicts of Interest
Personal Conduct
Confidentiality
Bribes, Kickbacks and Illegal Payments
Patents and Copyrights
Misconduct
Serious Misconduct
Very Serious Misconduct
Inexcusable Misconduct
Misconduct Investigations
Transportation & Travel
Company Owned Vehicles
Personal Vehicles
Living Expense Allowance
Other Travel Expenses
Expense Records
Travel Advances
Expense Reimbursement Third Party
Expense Policies Violations
Company Credit Cards
Appearance & Belongings
Personal Appearance
Business Attire
Casual Attire
Inappropriate Attire
Personal Belongings
Alcohol and Drugs
Medication
Smoking Policy
Equipment & Facilities
4.6.1
4.6.2
4.6.3
4.6.4
4.6.5
4.6.6
4.6.7
4.6.8
4.6.9
Parking
Telephone Use
Motor Vehicle and Workplace Equipment Operation
Safety Equipment
Company Tools
Waste Prevention
Solicitation and/or Distribution
Security
Bulletin Board
HR MANUAL
HR MANUAL is the total guidelines for the managers in the organization on the
subject of HUMAN RESOURCE.
The real work of managing people [human resource] is the responsibility of the line
managers. The HR department acts as a coordinator / advisory body to the line
managers, in addition to, its own administrative work.
Employee handbook is a major element of the HR manual. It is part of the HR
MANUAL.
The copy of HR MANUAL [ including the employee handbook] is given to the
managers only.
The copy of the EMPLOYEE handbook is given to the employees.
The TOTAL HR MANUAL development is a never ending assignment. It needs updating
every six months.
At the initial stage, it could take up to six months at least to complete the
manual/ handbook for a full time person, even if you employ an outside expert.
Once you have formed the HR manual list, you should sit with your boss
Analyse the list
Set the priority [ 1st. lot, 2nd. lot, 3rd. lot etc ]
Discuss the need for HO material, to uniform the approach
Discuss the need for local expert
Etc
Your priorities could be
Personnel records
Various forms required
Access control
Workplace rules
Employee hiring
Job descriptions
Employment applications
Interviewing applicants
Payroll administration
Training [ induction / orientation/development]
Employee handbook