Starting an HR Department from Scratch for a New Financial Venture: Need Urgent Help and Guidance

neelakshi gupta
Hi! I need urgent help in setting up the HR department (right from scratch) for a new venture in the financial sector. Can somebody help me with some basic guidelines and the basic HR structure, along with the processes and procedures? Need urgent help.

Regards,
Neelakshi

"People are not transactions or tasks; they are inspiration for transformation."
Ash Mathew
Dear Neelakshi,

Congratulations on your new assignment. Kindly search the following posts as we have earlier discussed setting up a new HR department. You will find good material here:

https://www.citehr.com/152990-new-jo...r-manager.html
https://www.citehr.com/154268-new-joining-h-r.html

Apart from what is mentioned above, please also keep the following in mind before initiating the work:

Since it's right from scratch, please set the proper standards for each HR process. For example, for recruitment.

Once you have understood the recruitment needs, prepare a standardized "New Requirement form" to be sent to all department heads. Whenever a department feels the need to hire a new person, they must fill out that document and send it to you. All recruitments should happen only through the HR department and not by individual departments.

I am highlighting the above because I am also facing the same situation as you. I am the first HR here, and I made the mistake of not communicating these standards to other departments. One fine Sunday, my dad showed me a newspaper ad that had a posting from my company for a new position, and the HR department found out about it through the newspaper!

As I mentioned earlier, after you go through the above posts, kindly define the standards for each process and communicate them to the other departments too (of course with the consent of your boss).

Good Luck!!!
raghunath_bv
Hi all,

Here are some points for the new HR professionals to follow the guidelines and work in accordance with them.
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sajiabra2002@yahoo.com
Dear Neelakshi,

You should first review the existing system or if there is no system, then propose your action plan on a monthly basis. Then get approval from the Management so that they are aware of the action plan.

Plan relating to setting up policies and procedures for manpower planning, recruitment, probation, performance appraisal, promotion, increment, training and development, grievances, and so on.

You should also review the existing compensation and benefits, then conduct a survey and prepare a report on an annual basis. This will help you to know where you stand compared to the market rate.

The format should be customized according to your company.

Regards,

Saji
thapar.rahul@gmail.com
Ash is true.

We need to start with basic things that can't be overlooked by HR and are mandatory. It also depends on the organization's view towards HR and readiness for expenses. One HR process may fit in one organization but may not in another. Also, HR systems and processes are conceptualized based on the organization's experience. But, as Ash suggested, there are some basic points to be looked into.

Some basics:

1) Requisition
2) Recruitment & Selection
3) Employee forms, information, offer letters, joinings, etc.
4) Employee database or HRMIS - generation of employee code and all basic information of the employee.
5) Statutory compliances (very important) - PF/Gratuity/ESIC, etc.
6) Benefits - medical insurance, accident insurance, etc.
7) HR policy documents, travel policy, etc.
8) Payroll processing (with finance).
9) Fixing probation & Appraisal duration, then system, etc.

Likewise, these are basic areas to be formalized, and each point will have some procedures. After addressing these aspects, one can start other activities like training, capacity building, etc. Also, as I mentioned, with experience, all the procedures become more polished.

Management's/employer's role and intention are very important. So, from the initial stages, make sure to convince them about the role of the HR department.

Please continue the discussion.

Regards,
Sandeep Kumar Dutta
Dear,

First of all, you should check whether you need an ESI Code or PF code as this is a relatively new system. Then, plan for time office and attendance, leave management, leave policy, personal file management, incentives and OT plans, recruitment policy, and HR policies for various functions.

As time passes, you will notice the need for new modifications in all aspects.

Sandeep
sam_dave
Dear Neelakshi,

Setting up an HR Dept. is a good idea, but we need to answer some questions. How many employees are there in the organization? If the number is greater than 100, then it becomes mandatory to have a separate HR department. However, if the number is less than 100, it is really not required. It would eventually increase the cost of the organization.

Now, if we can come up with HR policies instead of setting up the entire HR Dept., it will be more cost-effective and efficient. It is quite apparent that recruitment forms and reimbursement forms are implied depending on the size of the organization.

Hope this will help us get more insight into how to go about it.
Gauri Lou
Hi,

I am working in the HR department at the corporate office, and we have 3 units in different areas. We need to circulate an input sheet to our units to collect attendance for processing employee salaries. The existing format of the input sheet is not clear and user-friendly. Previously, there was no HR personnel here, so the accounting department handled this in a very unprofessional manner.

Does anyone have an impressive input sheet format that can be circulated to our units to facilitate the salary process?

Kindly provide.
Priya
vivekkhurana.gsba
Hi all,

This is Vivek Khurana. I recently completed a management program in HR.

Hope I will receive a lot of support from all of you.

Regards,
Vivek Khurana 🌟
sopheaphr
Dear All,

Thank you so much for kindly assisting me; it is very useful for me. By the way, could you tell me how to conduct TNA? Are there any materials related to this that you could share?

Thank you once again, and I hope to hear from all of you soon!

Regards,
Sopheaphr
saikrishna-vr
Dear All,

I am Saikrishna, and I work as an HR at , a security company. Previously, we have not been issuing appointment letters to our new joiners, but we have now decided to start providing them for our office employees. Could you kindly provide me with any templates or attachments that can help us implement this process?

Looking forward to your assistance.
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