Starting a New Business: How Can I Build an Effective HR System Without Experience?

I am starting a new set-up with a new set of employees. I strongly believe in a sound HR system to ensure the complete satisfaction of each of my colleagues. However, I am a marketing person and have no experience in designing HR systems, right from recruiting to the exit of an employee. This includes performance appraisals and many other processes and systems. I can't hire a full HR executive for this. Can anyone help me design an HR system for my company?

Setting Up an HR System for a Start-Up

Setting up an HR system for a start-up company is a tedious process that involves a lot of time and effort.

Mission Statement and Values

Start with the mission statement of the company. What is the mission of the company? What are the values of the company? How can these values be applied to achieve the mission of the company?

Initial HR System Components

I strongly suggest starting the HR system with simple mandatory items like the company application form, employee contract draft, holiday policy, leave policy, etc., and then gradually introducing other policies such as recruitment policy, induction, training, disciplinary procedures, absence policy, ID card policy, appraisals, etc.

Consulting a Professional

I strongly recommend consulting a professional HR individual for this task. They can draft policies for your company, and while there may be a charge involved, the value they provide is worth it.

Thank you for your kind suggestion. When I refer to an HR system, I am talking about policies, rules, guidelines, etc., and not a software system. We are not large enough to have an ERP solution. Currently, we are using Tally ERP 9.0, which meets our current needs.

We are seeking guidance and advice on how to develop a robust HR system as described above.

Thanks & regards,
Rahul Dev

If you are not able to engage HR personnel, you may ask a local consultant to provide the necessary facilities. This is a new company; therefore, you may also consult your management on what they require and then finalize the best practices to adopt for your company.

Regards,
P. Xavier Rajh

Hi Ramnaresh_20, thanks for your valuable suggestion. I have completed some of the basic work as you advised. However, I am unsure about how to proceed further. I have drawn inspiration from my experiences working with reputable companies and have saved copies of their rules and regulations, as I always knew that I would one day have my own business. Now that I am at that point, I realize that these policies are outdated and only somewhat helpful.

Seeking Further Guidance

Please advise on how to proceed further. Regarding hiring an external agency, I did consider it, but I am uncertain if I can afford their services. Additionally, I am unsure if I should invest my time and money in this endeavor at this stage of my business. I am also unaware of any agencies that undertake such exercises. If you know of any, please share their contact details. I am willing to explore this possibility and its feasibility.

Best regards,
Rahul

Hi P. Xavier Rajh,

Thanks for your kind suggestion. As far as hiring an external agency is concerned, I also thought of doing it, but I am not sure whether I will be able to afford them. Moreover, should I invest my time and money in this exercise at this stage of my business? Furthermore, I do not know about any agency that takes up such exercises. If you know anybody, please share their contact details. I will explore this possibility and its feasibility.

Best regards,
Rahul Dev