First HR Role in a Small Company: How Do I Implement Policies and Handle Underperformance?

Hi all, I am working in a small company where there was no HR person previously. I am the first HR person here. I have developed the HR policies. Can anyone guide me on how to implement the policies? Additionally, I have no idea how to handle employee overheads. It would be great if any senior professionals could assist me.

Addressing Underperformance and Termination Policies

Currently, a couple of employees are not meeting expectations, and my Managing Director wants to terminate them. Do we have a legal policy for this situation? Or is there a way to address the performance concerns without termination? Can we keep these employees under evaluation?

Please advise.

How I wish others who post their queries would learn from you—posting after doing what they could vis-a-vis the situation they are in.

Employee Overheads

Regarding "how to go about employee overheads," I suggest waiting for others to respond. I am just as good (or as bad) as you in that area .

Handling Termination

Regarding your query on "termination," I suggest having a discussion first with the concerned employees to understand firsthand the actual situation, problems, and reasons for their poor performance—from their perspective. Then, you can check with the manager in charge or the managing director if they directly handle these individuals.

If you find common ground to address the situation from the HR perspective, implement it. Ensure the employees are clear on the applicable timeframes for course correction/improvement and the parameters/areas that will be monitored to assess any improvement and its extent after the evaluation period—this falls explicitly within your domain as the HR person. Individuals in such situations need to be given a level playing field to give their full and best efforts.

Along with the timeframes, it may also be effective to communicate to them the possible actions that may follow based on whether their performance improves, remains unchanged, or worsens overall. This way, they will understand the pros and cons of their subsequent efforts and actions. This might require some discussion with your managing director.

Regards,
TS

Implementing HR policies can be done by providing information about the purpose and objectives of policies, accompanied by instructions on how to implement them in a step-by-step manner. If possible, conducting a staff meeting would also be a good option to provide clear communication about the objectives of all policies and why they are necessary for the business. Be open to any criticism during the initial stages, be prepared to answer questions, and if a change is required, proceed with it.

I did not understand your question on overheads clearly. Do you want to know how to calculate overhead costs, or what all is included in employee overhead?

Termination and Performance Improvement

Moving on to the next question about termination, I think TS has mentioned a lot of things, and I would also suggest giving them another chance with a Performance Improvement Plan. Their performance can be monitored timely, and if necessary, coaching can be introduced when signs of improvement are noticed.

All the best

Thanks a lot for your valuable comments . As per your advice, I will talk to that employee and even put him under performance evaluation.

Thanks a lot for your advice . I will implement the HR policy through an employee meeting itself.

Components of Employee Overheads

I need to know the components of employee overheads as well as how to calculate the same. Kindly advise.

Thanks a ton for your early reply and for your good advice too.

Thanks & Regards,
Honey

Thanks a lot for your valuable comments . As per your advice, I will talk to that employee and even put him under performance evaluation.

Hi Archana, thanks a lot for your advice . I will implement the HR policy through an employee meeting itself.

Components of Employee Overheads

I need to know the components of employee overheads as well as how to calculate the same. Kindly advise.

Thanks a ton for your early reply and for your good advice too.

Thanks & Regards,
Honey

Hi Archana, can I have a clue on how to go about the employee overheads? Looking forward to hearing from you!

Regards, Honey

Employee overheads include costs of equipment, such as laptops or PCs used by employees, training costs, canteen expenses, insurance, electricity usage costs, and all other indirect costs related to an employee in a company.

There are various ways of calculating overhead costs, but that means getting very technical, and I really do not think that your job may involve doing that at this stage. Hope it will be of assistance.