Hi, What are the 5 major aspects to be considered by HR while formulating HR policies and procedures in an start up organisation...
From India
Soical Compliance Auditing
Cite Contribution
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Sr. Hr Executive @ Polymerupdate
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Cite Contribution

The Startup may vary in terms of Operations and sector. However, here are few generic ones considered by the HR in a Startup:
  • Optimise: You will always have fewer resources , delivering more and highly specialised activities. Hence optimising remains the word.
  • Schedule: A startup is close-knit. Any deviation will create major disruption.
  • Dependencies: Each task shouldn't have just one person delivering it . A standby support needs to be in-built. Incase one member leaves or cant deliver the other should take up the responsibility thereafter.
  • Transparency: Information sharing and taking team members in confidence is quintessential. Unlike large firms, startup have far less option to brush the details under the carpet. Creating a culture of openness, helps dealing challenges, when they arise.
  • Village: This is a term that I came across recently, ideally used to build an organisational culture. You can find more in here Village:Employee Engagement
Wish you all the best !

From India, Mumbai

Hi Sumera,

In addition to what (Cite Contribution) has to share, I would suggest you following:

Since it is a start-up, it is very essential to keep your staff motivated. A start up has its own set of difficulties to face which involves -

1. No recognition in market: When you try to sell your service in the market, people do not know you. They are hence skeptical to invest with you.

2. Low Funds: Since there is less sales, money flowing in would be low. Your staff may be at lower salary than the market. Salaries might be disbursed late. This should not demotivate the staff. In order to avoid this, keep a monthly meeting that bring in information to all you staff about company's progress report. And share not just the good but also Bad-s and Ugly-s.

3. Work-life Balance: As said you might have to walk extra mile in the initial few years to achieve a brand in the market. You staff may have to wait back a little or work on a few week offs or holidays. Keep them motivated and engaged so that this does not frustrate them.

Whenever you are into a start up, having engaged and motivated employees is important. Do not make them feel little or as if they are not important. Make them equal partners in the profit you earn. If not by giving a plent of it away, atleast something as bonus and atleast mentionting the progress report.

Remember the movie Rocket SIng - Sales man of the year. One of the best inpirions I have had (though I fail to understand why the movie went flop).

All the best. :-)

From India, Mumbai

The above discussion is for a startup. However can someone share how to develop a framework for a 50 year old organization?
From India, Madras

Hello Hari,

An organization as old as 50 years would have certain policies and procedures in place.

If incase yours is initiating an HR department afresh, you need to do following -

1. Understand the policie, procedures and working attributes of your company.

2. Accordingly frame an HR Manual that would have details on -

......a. Company's Overview

......b. Organizational Structure / Hierarchical chart

......c. Employment at will policy (unless you are signing a bond for college graduates who would be given some kind of training)

......d. Recruitment Policy (Employee referral scheme, Probation, etc)

......e. Working policy (office time, working environment, maintaining proper and basic cleanliness and hygiene, etc)

......f. Attendance Policy (Office hours, late allowance / grace period, punishment for late arrivals, reward / recognition for people coming on time, etc.)

......g. Leave policy (No of max leaves that can be availed, categorization of leave, maternity leave policy, special leaves - marriage / death of a family member / paternity leave etc, combining leaves with holidays / weekly offs, leaves during probation, etc.)

......h. Promotion / Job Enrichment / Job Enhancement / Transfer

......i. Retirement & Long term Service Recognition

......j. Compensation details showing the kind of benefits provided by the firm.

......k. Separation Policy (Resignation / Termination / Absconding etc)

......l. Dress Policy

.....m. Rewards and Recognition

......n. Compliance / Health and Safety policy

This is only a brief list and you can include anything you think you should share with your employees.

Apart from that you can start to learn about the different ways different functions are being handled and bring amendments in same.

For example you can suggest to incorporate a proper appraisal system to be practiced rather than just giving a salary hike in the appraisal period.

I hope it helped answer your query.

From India, Mumbai

thanks a lot for your reply. That was a informative.
Can I know what what are the top 3 functions of HR department that are outsourced in an start-up organisation and also major reasons why employees leave a start-up organisation.
Thank you....

From India

Why employees leave a start up organization is partly covered in my previous comment which I would reemphasize on adding to list -

1. Long hours of work

2. No brand name in market and hence they don't feel proud to work in a start up company

3. Work-life disbalance

4. Due to low fund inflow, salary delays

5. Salary paid may be lower than industrial average

6. No scope for growth

7. Frustration is more than engagement

8. If the boss starts micro managing, the person would be more frustrated.

9. Deadlines and targets to hit.

10. Benefits offered would be lower

3 HR functions that can be outsourced for a start-up:

It would depend on the person who is working in the HR department, how many HR are there, what is the employee strength, motivational level of employees, etc.

Nonetheless, in general, I can say following activities can be outsourced:

1. Performance Appraisal: It is very difficult to initiate a performance appraisal process and keep your employees motivated. Generating data from a simple form, converting the data to numbers, deriving on certain conclusion is a task. A guidance from a professional appraiser in initial years would actually help you to develop a process of your own.

2. Recruitment: For a startup, it is difficult to source right candidate - educational fit with salary fitment - and hence it becomes essential to understand that if we can hire an external consultant or recruiter to source some candidates for us, it would save us time. Most recruitment consultancies charge you 20% of the CTC offered to 100% of the 1st month salary given to the candidate (most of them also gives a free replacement if the new hired leaves in 3 month's time frame). However, the time saved in sourcing the candidates can be used in some fruitful work. Moreover you can tie up with 2-3 placement agencies and that will help you get the best candidate. You pay only to one whose candidate you hire. Usually there is no fee to be paid when you sign a service agreement, they charge you only when you finalize a candidate they sourced for you.

3. Employee Engagement: As I said, for startups especially, it is very essential to keep the employees engaged so that they can work efficiently, towards the company's interest, be an advocate to the company's brand image, refer the firm in their family and friend circle to do a word of mouth advertisement (which is the most effective branding methods according to most marketeers)

I hope it helped solve your query :-)

From India, Mumbai
Cite Contribution

Dear Harinim,

Ankita contributed with an exhaustive list . I have few questions for you. What are the values in that organisation do you see as a static? And what needs to be dynamic in order to save the Organization from being socially extinct ?

When you need to review a system that stood the test of time, identify and acknowledge its strengths. Agility have already been there or else , it wouldn't have survived different business cycles.

The players might have changed from time to time. Each brought their own formula and changed the system. How many ways have time corroded, what was right ?

What did the organisation miss out on while adapting to the changing times ? Resources slipped through or there was a gap in the pace ?

Few structural areas cant be redesigned , unless there is a landslide event . Change is best brought to the nimble foot.

Identify those sensitive areas , that will be the first to adopt new measures. Once you instil enough trust, you will see through the change you want to bring in.

Wish you all the best !

From India, Mumbai

Thanks a lot ankita... that was helpful... yeah.. that movie was really inspiring.... very true organisation and management is not about targets... It’s about people. :-)
From India

Hello Sumera

Ankita and (Cite Contribution) provided you with excellent inputs. I have nothing much to contribute except saying that since your's is a start up, you need to have clear understanding of organisational goals beacuse your HR plocies need to be aligned to these goals, failing which they may end in serving a cross purpose only. Therefore should need arise, have a discussion with your senior management about organisation goals.

Secondly Ankita while showering all praise on Rocket Singh - the sales man of the year, raised a very pertinent question as to why such a good movie flopped. I too do not know as to why it flopped. But it is necessary to know the answers to such key questions. You might have noticed that some best products in the market failed to take off, while some products, hitherto popular might have suddenly disappeared from the market. The reasons may be many like competetion or pricing etc but one common factor that is noticeable in such flop shows is that either they failed to connect to the people or even if they established initial conenctivity with people, failed to sustain it by keeping pace with changing needs of the people and thus went into oblivion. Therefore your HR policies in order to be successful need to connect to employees, apart from being aligned to goals.This is the delicate balance which you need to strike in your HR policies to make them meaningful.


HR & Labour Law Advsior


From India, Mumbai

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