How Can I Innovate HR Practices in a Small Company with Limited Resources?

I am working in a newly established company with 60 employees, and I am the only HR personnel for them. Therefore, I want to implement some innovative developments in my organization, such as motivational programs, disciplinary procedures, recruitment, training, and development, among other initiatives. I would appreciate any assistance you can provide in developing the organization.

Thanks and Regards,
Chetan Thorat

Since it's just the incorporation stage of the company, you have to put in extra effort. Start with:

1. **Employee Handbook** - This should include the code of conduct, office timings, policies, etc. It will serve as the induction to the organization as well as the disciplinary function.

2. **Prepare a Joining Kit.**

3. **Work on HR Policies.**

4. **Letter Formats** - Appointment, offer, promotion, appraisal, leave management, termination, contracts for IT trainees.

5. **Set Parameters for Recruitment** - Also, have set patterns for job descriptions.

6. **Prepare a Hierarchy of Designations.**

Let me know if you need further help with formats, etc. Start with this and then move further to motivation, training, and development.

Regards,
Mansi

Dear Mansi, First of all, thanks for the suggestion. I have already prepared all the things as you suggested. However, nowadays I am facing problems regarding employee attrition, retention, engagement, and occasionally about appraisals. Kindly assist me with these issues. Thanks once again for your suggestion.

Regards,
Chetan Thorat

As you mentioned, this is a new and small company, and the development and growth structure would depend on many dimensions like motivation, discipline, retention, etc. For any company, whether policies, rules, or Acts are put on paper and enforced, there is no guarantee that people or the resources would abide by them. For an HR professional, it is crucial to balance human growth with organizational growth.

Identify Organizational Challenges

Firstly, you should identify the problems with the organization's manpower. Always ask why attrition is happening, why there is a lack of employee engagement, etc. In short, conduct a problem analysis or training needs identification for the group, considering its smaller size. You can either do it yourself if you think you are capable or hire an external consultant to assist.

Once you understand the areas of concern with the people, only then can you consider solutions or alternatives. Mere application of anything can result in a loss of time, money, and resources.

I hope I have answered your query.

Regards,
Anuradha
Consultant
MINDSHARE HR Consultancy Private Limited

Thank you for the suggestions. Now, I have to work on identifying the reasons for employee attrition and trying to retain them in the organization. Could you please advise me on how to identify the employee attrition rate and ways to reduce it?

Query on Employee Attitude

I have another query: some employees here have a laid-back attitude, leading to a lack of punctuality at work, especially in the marketing and IT departments. Can you provide me with some solutions to address this issue?

Regards,
Chetan

For late coming, you have to take strict action. Try to maintain a late-coming log and start considering 3 late arrivals in a month as equivalent to 1 half-day deduction. As an HR professional, you have to handle these issues in a very diplomatic manner, ensuring that your approach is positive rather than negative. Begin by highlighting the positive outcomes of punctuality to the employees.

Regards,
Mansi

I was also facing the same problem of arriving late, and we took a few steps that I hope will also work for you.

Identifying Reasons for Tardiness

First, we identified the reasons for tardiness by speaking with each individual personally. The reasons ranged from a lack of frequent transportation to the office, a careless attitude of employees towards the organization, family issues, to even a careless attitude of the management. I will provide an example to illustrate this: when planning meetings with employees, if the management team themselves arrive late, it sets a poor example. Other reasons included unfulfilled promises and a lack of proper monitoring. After interviewing all the employees, we implemented the following steps to address these issues:

1. Maintaining office registers to record entry and exit timings and strict monitoring of the same.
2. Setting an example by arriving on time yourself.
3. Introducing a policy to motivate employees to arrive on time, where those who arrived on time the entire week were acknowledged with a standing ovation from their colleagues and the management team. Additionally, these employees were treated to a small party with snacks like samosas and cold drinks.
4. Rewarding employees who arrived on time for the entire month with 2 half days off.
5. Establishing specific timings for tea and coffee breaks; for instance, serving the first round of tea exactly at 10:10 am and the second round only after lunch. This seemingly minor change proved effective as many employees arrived on time just to have tea, knowing they would not receive any before lunch.
6. For employees who continued to arrive late despite the policies, we conducted personal interviews to understand their issues and explained how their punctuality and hard work would benefit the organization's growth and success, linking promotions and incentives to these parameters.
7. Finally, we introduced a policy where punctuality was considered a parameter for overall appraisal.

These steps successfully improved punctuality in our workplace. I recommend implementing these policies gradually to avoid a high attrition rate. Build trust with your employees, communicate with them, and proceed step by step. Rushing the process may lead to strong opposition.

Regards,
Yamini

Thank you for your suggestion. Your advice is excellent and easy to implement, and I will definitely follow through with it. Once again, thank you so much for your valuable input.

Regards,
Chetan Thorat
HR Executive

This is regarding the attrition rate. There are several reasons for attrition:

1. Internal politics in the organization.

2. Ineffective incentive and appraisal policies.

3. Low salary compared to competitors or irregular timing for salary payments.

4. Employees lack confidence in the organization's future and growth, especially since it is a newly established company. It is natural for them to seek more secure job opportunities.

5. Lack of dedication from management towards employees, resulting in lower employee engagement in strategy formulation, etc.

There could be many other reasons. It is essential to identify the root cause and then develop a retention strategy accordingly.

I suggest conducting a meeting with all employees and management to involve them in important decision-making processes, such as business diversions or policy changes, and seek their input. This activity will help increase employee engagement.

For example, when planning marketing strategies, involve the marketing and supporting teams in the formulation process by asking for their suggestions. While maintaining the confidentiality of critical information, include the team in discussions about fundamental aspects. These practices will enhance employees' sense of responsibility, encouraging them to think before considering leaving the company.

It is human nature to take pride in watching efforts grow and succeed. Similarly, by encouraging employees to brainstorm and contribute new ideas, and respecting their suggestions when feasible, attrition rates are likely to decrease. Employees will appreciate seeing their contributions materialize. Providing employees with engaging tasks that utilize their skills and creativity will reduce office politics and enhance work satisfaction.

I hope you find this idea beneficial.

Regards, Yamini

Hi Chetan, can you please let me know how you prepared KRA for employees? What challenges did you face? My company has 18-19 employees, making it a small company. I also need to implement the same in my company. Can you please help me?

Regards,
Mamta