Guidelines for Setting Up an HR Department
Stage 1: Initial Review
- Review the current practices/policies (if any).
- Audit all HR activities that are performed (even in a crude format).
Core HR Key Result Areas (KRAs)
- KRA 1: Recruitment/Selection
- KRA 2: Workforce Planning and Diversity
- KRA 3: Performance Management
- KRA 4: Reward Management
- KRA 5: Workplace Management and Relations
- KRA 6: A Safe and Healthy Workplace
- KRA 7: Building Capabilities and Organizational Learning
- KRA 8: Effective HR Management Systems, Support, and Monitoring
Stage 2: Understanding the Organization
- Understand the organization, its structure, systems, politics/influential people, roles, positions, and job descriptions/specifications.
Stage 3: Discussions with Management
- Discuss values/beliefs with senior management/CEO and the need for an HR department.
- Discuss expectations from the HR department (short/medium/long term).
- Discuss with the CEO the organization's corporate objectives/strategies and how HR can contribute.
- Seek consensus on organization structure/management process.
- Discuss the current organization culture with senior management.
- Discuss core activities/competences and business drivers of the organization.
To get a good start and hold your credibility, you need this information to start your work on the HR department. Get a copy of the corporate plan, which outlines the company's vision, mission, corporate objectives, and strategies.
HR department is a support unit and must work closely with other departments.
Stage 4: Current HR Activities Audit
- Even though there is currently no HR department, several HR activities are being carried out.
- You need to know what they are, how they are being carried out, and by whom.
- Conduct a quick HR audit of the present situation.
After gathering and summarizing all information, sit down with your boss (CEO) to discuss and prioritize items as follows:
- Urgent/Important
- Urgent/Not Important
- Not Urgent/Important
- Not Urgent/Not Important, but needed down the line.
Stage 5: HR Manual Review
- Review the HR manual as listed below.
- Pick points out of it as per your need, based on your discussion/audit results.
- You may want to start with HR department objectives, strategies, recruitment/selection procedure, organization structure, job analyses/descriptions/specifications, payroll/compensation/administration, appointment/confirmation/termination/resignation procedures, induction/orientation programs, employee communications, training & development, and performance appraisals/management.
Once you have the preliminary draft ready, you can start with your employee handbook.
Stage 6: HRM Processes Review
- Review the HRM processes, noting what you think is important for the company and the priority ones.
HRM Processes
- HR Auditing
- HR Budgeting
- Strategic HRM Planning
- HR Strategies and Policies
- HR and Change Management
- Competency-based HR
- Knowledge Management
Job Development
- Job Analysis
- Job Role
- Job Description
- Job Specifications
- Job Enrichment
- Job Rotation
Recruitment/Selection
- Recruitment
- Selection
- Induction
- Orientation
Organizational Behavior Programs
- Employee Engagement
- Motivation
- Organization Culture
- Organization Development
Organization
- Org. Designing
- Org. Structuring
- Org. Development
- Job/Role Structuring
Human Resourcing
- HR Planning
- Manpower Planning
- Succession Planning
- Talent Management
Performance Management
- Performance Appraisals
- Performance Managing the Processes
HR Development
- Org. Learning
- Training
- Education
- Development
- Training Evaluation
- E-learning
- Management Development
- Career Planning/Development
Reward Management
- Job Evaluation
- Managing Reward Process
- Administration of Rewards
- Benefits
Employee Relations
- Organization Communications
- Employee Communications
- Staff Amenities
Health and Safety
- OHS
Human Resource Information System
Stage 7: HRM Systems Review
- Review the HRM systems, noting what you think is important for the company and the priority ones.
HR Systems
- HR Strategic Planning System
- Human Resource Planning System
- Manpower Planning System
- Job Profiling System
- Recruitment & Selection System
- Performance Appraisal System
- Performance Management System
- People Development Systems
- Career Planning and Development System
- Succession Planning System
- Job Enrichment System
- Compensation Planning and Packaging System
This is just a common list. After stages 1 to 7, make a report on:
- The current situation
- The kind of HR department required
- Your priorities
- Your action plan
- Your time schedule
Make a Temporary HR Department
- One HR Manager (Yourself)
- One Training Manager
- One Salary Administration Manager
- One Recruitment/Selection Manager
Discuss this with senior management, seeking their approval, blessings, and support to implement your plan. To win confidence/trust, you need to show credibility and functional knowledge level. Initially, do not rush with too many things. Take one thing at a time and do a thorough job. Everything must be done right the first time.
Preparing an HR manual is important. Not all that is listed here may be necessary at first. Discuss with senior management to identify the priority ones and work on them.
HR Management Manual
- Human Resources Policies, Procedures, and Forms
- Table of Contents
Administration
- ADM.101 Personnel Records Activities
- Employee Information
- HR Personnel Records
- Contents of Personnel Files
- Employee's Personnel Records Review
- Management Review of Personnel Files
- Company Release of Employee Information
- Record Retention and Long-Term Storage
- Record Destruction
- Forms: Personnel Records Access Log, HR Records Retention Periods
Form Development Activities
- Form Development and Format
- Authorization and Printing
- Form Numbering and Placement
- Forms Index and Manual
- Forms: Form Printing Request
Document Control Activities
- Document Distribution
- Document Revision
- Document
- Temporary Changes
- Forms: Request for Document Change (RDC)
Mail & Express Services Activities
- General Mail Usage
- Addressing Mail
- Express Mail
- Overnight Packages
- Additional Information Resources
- Forms: Outgoing Mail Register
Telephone Answering Activities
- Answering Techniques and Etiquette
- Answering and Directing Calls
- Taking Messages
- Telephone User's Guide
- Forms: Important Message
Property & Access Control Activities
- Background Checks
- Physical Access Controls
- Key Controls
- Proprietary Information Controls
- Collection of Access Controls
- Visitors & Guests
- Forms: Key Issue Policy, Visitor Log
Separation Activities
- Resignations
- Involuntary Terminations and Layoffs
- Terminations for Cause
- Termination Meeting
- Additional Information Resources
- Forms: Exit Interview Checklist, Exit References Authorization
Workplace Rules & Guidelines Activities
- Alcohol and Drugs
- Breaks and Lunch Time
- Company Property
- Grievances and Complaints
- Inclement Weather
- Parking
- Personal Telephone Calls
- Smoking
- Solicitations
- Suggestions
- Visitors
- Forms: Suggestion Form
Human Resources Reports Activities
- Preparation Guidelines
- Occupational Health & Safety Reports
- Equal Opportunity Reports
- Training Plan
- Hiring Status Report
- Compensation Summary
- Forms: Human Resource Reporting Summary, HR Hiring Status Report
Dress Code Activities
- Dress Code
- Business Attire
- Business Casual Attire
- Casual Attire
- Uniformed Attire
- Safety Attire
- Formal Attire
- Inappropriate Attire
- Business Situations
- Recreation & Parties
- Dinners & Receptions
- Personal Hygiene
- Disciplinary Action
Hiring Procedures
- HRG.101 Employee Hiring Activities
- Needs Analysis
- Personnel Requisition
- Job Posting & Screening
- Interviewing
- Pre-Employment Screening & Testing
- Background Investigation
- Hiring and Employee Offers
- Motor Vehicle and Equipment Operation
- Applicant Files
- Additional Information Resources
- Forms: Personnel Requisition, Offer Letter, Personnel Change Notice, New Employee Hiring Checklist, Employment Eligibility Verification, Employee's Withholding Allowance Certificate
Job Descriptions Activities
- Job Description Preparation
- Format and Content
- Job Title
- Effective Date
- Department
- Summary of Functions
- Essential Duties and Responsibilities
- Organizational Relationships
- Qualifications
- Physical Demands
- Work Environment
- Job Description Approval & Distribution
- Forms: Job Description Format
Employment Applications Activities
- Application for Employment
- Application Information
- Personal Information
- Employment Interest
- Education & Training
- Employment History
- Military Service Record
- References
- Compliance Information
- Forms: Employment Application, Employment Application Supplement
Interviewing Applicants Activities
- Interviewing Objectives
- Resume Examination
- Telephone Interviews
- E-Mail Interviews
- In-Person Interviews
- Forms: Employment Interview Questions, Interview Form
Background Investigations Activities
- Background and Hiring
- Investigative Consumer Reporting
- Employee Reference Checks
- Motor Vehicle Record (MVR) Inquiry
- Forms: Employee Investigation Checklist, Employee Background Authorization, New References Authorization, Reference Check Survey
Compensation Procedures
- COM101 Payroll Activities
- Payroll Records
- Timesheets
- Payroll Deductions
- Worker's Compensation Insurance
- Social Security & Medicare
- State Income Tax
- Earnings Tax
- Tax Withholding Payments
- Payroll Adjustments
- Advances
- Garnishments
- Paychecks
- Direct Deposit
- Lost Paychecks
- Final Paychecks
- Vacation Pay
- Additional Information Resources
- Forms: Monthly Time Sheet, Central Govt. Tax Calendar, Electronic Funds Transfer Authorization
Paid & Unpaid Leave Activities
- Paid Time Off
- Unpaid Time Off
- Absence Request and Notification
- Holidays
- Vacation Eligibility
- Vacation Schedules
- Vacation Over Holidays
- Additional Information Resources
- Forms: Absence Request Form
Insurance Benefits Activities
- Life Insurance
- Long Term Disability Insurance
- Social Security
- Workers' Compensation
- Wage Continuation
- Unemployment Compensation
- Health Insurance
- Additional Information Resources
Healthcare Benefits Activities
- Cost and Premiums
- Eligibility
- Enrollment
- Coverage
- Filing a Claim
- Termination and Conversion of Coverage
- Additional Information Resources
- Forms: Benefits Enrollment/Change Form
Employee Retirement Income Security Activities
- Plan Administration
- Investment Policy Statement
- Fidelity Bond
- Fiduciary Liability Insurance
- Employer Matching
- In-Service Loans and Withdrawals
- Employee Participation
- Notice Procedures
- Initial Notice
- Annual Notices
- Additional Information Resources
Consolidated Budget Reconciliation Activities
- Plan Administration
- Qualifying Events
- Notice Procedure
- Benefits Protection
- Enforcement
- Additional Information Resources
Development Procedures
- DEV101 Development Management Activities
- Development Planning
- Training Effectiveness
- Training Records
- Training Courses
- Performance Evaluations
- Additional Information Resources
- Forms: Training Plan
Training Reimbursement Activities
- Eligibility
- Approved Programs
- Reimbursement
- Forms: Request for Training
Computer User & Staff Training Activities
- MIS Training and Certification
- MIS/LAN User Training
- E-Mail Training
- Software Applications
Internet & E-Mail Acceptable Use Activities
- Acceptable Use
- Inappropriate Use
- Internet and E-Mail Etiquette
- Security
- User Compliance
- Additional Information Resources
- Forms: Computer and Internet Usage Policy
Performance Appraisals Activities
- Performance Appraisal Guidelines
- Appraisal Preparation
- Appraisal Discussion
- Salary Adjustments
- Appraisal Conclusion
- Additional Information Resources
- Forms: Self Appraisal Form, Performance Appraisal Form
Employee Discipline Activities
- Introduction to Misconduct
- Responses to Misconduct
- Verbal Warning
- Written Warning
- Suspension
- Termination
- Serious Misconduct
- Very Serious Misconduct
- Inexcusable Misconduct
- Misconduct Investigations
- Forms: Disciplinary Notice
Compliance Procedures
- CMP101 Workplace Safety Activities
- Worksite Analysis
- Hazard Prevention and Control
- Safe Work Procedures
- Protective Equipment
- Fire Prevention
- Hazard Communication Program
- Medical Emergencies
- Workplace Safety Training
- Reporting and Record Keeping
- Additional Information Resources
- Forms: Safety Suggestion Sheet, Workplace Safety Self-Inspection Checklist, Workplace Safety Action Plan, Workplace Safety Rules, Index of Hazardous Chemicals, Material Safety Data Sheet, Injuries and Illness Log, Summary of Injuries and Illness, Injuries and Illness Incident Report, Instructions for OSHA Forms
People with Disabilities Activities
- Background
- Who Is Covered?
- Employment Issues
- Public Accommodations
- Enforcement of the Act
- Additional Information Resources
Annual and Medical Leave Activities
- Reasons for Taking Leave
- Advance Notice and Medical Certification
- Job Benefits and Protection
- Unlawful Acts
- Enforcement
- Employer Notices
- Additional Information Resources
- Forms: Certification of Healthcare Provider, Employer Response to Employee Request
Drug-Free Workplace Activities
- General
- Prohibitions
- Authorized Use of Prescription Medicine
- Drug Awareness Program
- Disciplinary Actions
- Additional Information Resources
Health Insurance Portability and Accountability Activities
- Management
- Privacy Standards
- Medical Records Maintenance
- Medical Records Access
- Additional Information Resources
- Forms: HIPAA Authorization Form
Harassment & Discrimination Activities
- Unacceptable Behavior
- Complaint
- Corrective Measures
- Enforcement
- Additional Information Resources
Writing Job Descriptions
- Introduction
- Purpose
- Scope
Written Communication
- Non-discriminatory language
- Active voice
- Action verbs
- Plain English
Format and Content
- Effective Date
- Department
- Summary of Functions
- Essential Duties and Responsibilities
- Grouping Several Tasks into a Single Responsibility
- Responsibility Statements
- Delegated Responsibilities
- Organizational Relationships
- Reporting Relationships
- The Organization's Environment
- Qualifications
- Mandatory Requirements
- Key Selection Criteria
- Physical Demands
- Work Environment
- Job Performance
- Job Descriptions
- Reasonable Accommodation
- Accessibility
Employee Handbook
- Section 1: Introduction
- The Company Philosophy
- The Company Mission
- Equal Employment Opportunity Policy and Affirmative Action Plan
- Employment-At-Will
- Sexual Harassment
- Safety
- Safety Rules
- Hazardous Wastes
- Reporting Injuries and Accidents
- Drug-Free Workplace
- Prohibitions
- Drug Awareness Program
- Disciplinary Actions
Section 2: Employment
- Personnel Administration
- HR Personnel Records
- Contents of Personnel Files
- Employee Information
- Employee's Request for Review of Personnel Records
- Management Review of Personnel Files
- Service
- Employee Categories
- Job Posting Procedures
- Employment of Relatives
- Employment of Minors
- Promotions
- Transfer of Employees
- Separation of Employment
- Workforce Reductions
- Probationary Period
- Extra Income
- Process Improvement
- Employee-Management Forums
- Employee Suggestion Program
Section 3: Compensation & Benefits
- Benefit Eligibility
- Payroll Information
- Time Records
- Pay Periods
- Salary Compensation for Partial Pay Period
- Pay Rate Schedule – Hourly Paid Employees
- Payroll Deductions
- Overtime
- Payroll Errors
- Garnishment of Employee Wages
- Authorized Check Pickup
- Pay at Time of Separation
- Attendance & Leave
- Medical Leave Policy
- Sick Leave Credit Limit
- Sick Leave Policy – Usage
- Medical, Dental, and Optical Appointments
- Exhaustion of Accumulated Sick Leave
- Pallbearer, Funeral, Emergency Leave
- Civic Leave or Jury Duty
- Voting
- Military Leave
- Maternity Leave
- Parental Leave
- Leave of Absence
- Insurance
- Hospitalization and Medical Insurance
- Continuation of Group Health Insurance
- Life Insurance
- Long Term Disability Insurance
- Social Security
- Workers' Compensation
- Unemployment Compensation
- Savings Plan
- Break Room
- Employee Discounts
- Educational Assistance
Section 4: Employee Responsibilities
- Work Schedules
- Working Hours
- Salary Employees
- Hourly Employees
- Clean Workplace
- Legal & Ethical Conduct
- Ethical Standards
- Conflicts of Interest
- Personal Conduct
- Confidentiality
- Bribes, Kickbacks, and Illegal Payments
- Patents and Copyrights
- Misconduct
- Serious Misconduct
- Very Serious Misconduct
- Inexcusable Misconduct
- Misconduct Investigations
- Transportation & Travel
- Company-Owned Vehicles
- Personal Vehicles
- Living Expense Allowance
- Other Travel Expenses
- Expense Records
- Travel Advances
- Expense Reimbursement – Third Party
- Expense Policies – Violations
- Company Credit Cards
- Appearance & Belongings
- Personal Appearance
- Business Attire
- Casual Attire
- Inappropriate Attire
- Personal Belongings
- Alcohol and Drugs
- Medication
- Smoking Policy
- Equipment & Facilities
- Parking
- Telephone Use
- Motor Vehicle and Workplace Equipment Operation
- Safety Equipment
- Company Tools
- Waste Prevention
- Solicitation and/or Distribution
- Security
- Bulletin Board
Employee Handbook Forms
- Acknowledgement of Receipt and Understanding
- Statement of Legal and Ethical Business Conduct
- Drug-Free Workplace Policy Employee Acknowledgement
- Job-Related Accident
HR Manual
- HR Manual is the total guidelines for managers in the organization on the subject of human resources.
- The real work of managing people (human resources) is the responsibility of the line managers. The HR department acts as a coordinator/advisory body to the line managers, in addition to its own administrative work.
- The employee handbook is a major element of the HR manual. It is part of the HR manual.
- The copy of the HR manual (including the employee handbook) is given to the managers only.
- The copy of the employee handbook is given to the employees.
- The total HR manual development is a never-ending assignment. It needs updating every six months.
- At the initial stage, it could take up to six months at least to complete the manual/handbook for a full-time person, even if you employ an outside expert.
Once you have formed the HR manual list, you should sit with your boss to:
- Analyze the list
- Set the priority (1st lot, 2nd lot, 3rd lot, etc.)
- Discuss the need for HO material to uniform the approach
- Discuss the need for a local expert
Your priorities could be:
- Personnel records
- Various forms required
- Access control
- Workplace rules
- Employee hiring
- Job descriptions
- Employment applications
- Interviewing applicants
- Payroll administration
- Training (induction/orientation/development)
- Employee handbook
You/your senior management should agree to the priority list. Now you are ready for the hard work.