Setting Up a New HR Department in Construction: What Should I Focus On First?

Dear All,

I am currently setting up an HR Department in one of the Engineering Construction companies. This company currently doesn't have an HR Department in its corporate office. All HR functions are currently handled from their Regional Office, which is located in another area. In the corporate office, I am the only newly appointed person, and the department has just been started.

How should I proceed? What are the essential aspects I need to consider in setting up the new HR department?

Regards,
KSLBP

Dear KSLBP,

Let me first congratulate you on securing a job that will yield rich dividends in the future. The experience you are about to gain will be very valuable and enriching.

Coming to the point, I suggest the following approach:

1) Firstly, establish a centralized Employee Database and create Corporate and Individual Organization Charts. Develop a policy for amending, modifying, or creating new Organization Charts. For instance, to create an additional position, the Chart must be approved by the Functional Head.

2) Develop and implement a Recruitment Policy. For example, all employees above the rank of Engineer/Officer must be recruited via the Head/Regional Office. When recruiting a Manager, the CTC must be between 5 lakhs p.a. to 7 lakhs p.a. Any deviation will require approval from the Corporate Head.

3) Establish and implement a uniform Performance Appraisal Policy linked to promotions and increments.

4) Ideally, establish and implement a uniform Compensation and Benefits Structure.

5) Implement a uniform Travel, Conveyance, and Transfer-related expenditure reimbursement policy, which is essential for a Construction Company.

6) Develop a uniform Recreation and Welfare Policy for site employees, including standards of accommodation and facilities like Insurance to be provided.

7) Set up a Statutory checklist and oversee the implementation of various statutes at both the Site and Corporate Office.

8) Develop a Training Needs Assessment policy and create a Training Calendar.

The list goes on. The above suggestions are only indicative, and please feel free to reach out for further assistance.

Kind Regards,

SC

Dear friend,

Please ensure perfection in filing the papers separately. Collect all the employee data and file them meticulously. Check the salaries to be paid, as well as the deductions of PF and ESI. Ensure that other policies such as recruitment, welfare, performance, and other relevant matters are followed according to the guidelines of your head office. Keep in touch with local people and maintain good relationships. Since it is a construction company, ensure that the safety policies are being properly adhered to for the workers.

Thank you.

Dear KSLBP,

There are two definite areas you have to address: Hygiene factors and others. For the Hygiene factor, set up the HR services in order, i.e., Employee Database, Attendance, and Payroll management, besides statutory requirements. Once the hygiene factors are taken care of, you can concentrate on establishing other areas such as proper recruitment channels, Training & Development, and Engagement exercises. This is to ensure that all people receive their salary on time and statutory requirements are met; these are the basic requirements from HR. Then, you could concentrate on other areas.

Hope this provides basic clarity.

Regards

Hi KSLBP,

Greetings!

Please find the attached document herewith for your reference.

Thanks & Regards,
S. Narendra Nath