Starting from Scratch: How Do I Build an HR Department as a Newbie in a Small Company?

I am Seetal, a member of this group. I am a fresher and recently joined a financial services company. They don't have any HR department and have asked me to set up one. I have to do everything, right from developing HR policies for the company, recruitment and selection, salary structure, salary slips, employee benefits, etc. If you have any ideas, please suggest and help me out. Is it good to start a career with this type of company?

Please get a brief idea from your management about what they are exactly expecting from the HR Department. Anyway, please look into the below tasks:

1. Prepare the Organizational Structure and ensure proper manning.
2. Please create consultant policies for Recruitment, ESIC, PF, and other statutory licenses.
3. Develop a policy for leaves. For further information, please refer to the Shops & Establishment Act, Factories Act, and Companies Act.
4. Prepare the Joining document, Leave application, employee job confirmation form, and Full and Final Settlement document.

For further information, please let me know.

Thanks & Regards,
Ashok Negidi
M: [Phone Number Removed For Privacy Reasons].

I am working in Hyderabad. If you have any idea or knowledge, please let me know. If you have any document, then please send it to me.

Thank you so much, sir, for this valuable information. My company currently has 10 members. I am a fresher and don't have any practical knowledge on how to prepare an Organizational Structure, HR Policies, and more. If possible, can you please describe these in detail or send me any documents?

Organizational Structure

For preparing the organizational structure, please review the job descriptions of all designations. This will help you understand who reports to whom, making it easier to create the org structure.

Recruitment Policy

You may not need a recruitment policy since you have only 10 employees.

ESIC

If all employees earn more than ₹15,000/-, ESIC may not be required. If needed, please let me know, and I can assist you.

PF

I am not familiar with PF. Please consult someone knowledgeable in this area.

Statutory Compliance

Verify with your management whether your organization falls under the Shops & Establishments Act or the Companies Act. Ensure all necessary licenses are in place.

Working Hours and Dress Code

Ensure clarity on working hours and dress code.

Workplace Ethics

Establish workplace ethics guidelines.

Required Documents

Organize essential documents such as MRFs, joining documents, leave applications, confirmation letters, increment letters, and FNF settlement papers. You can find templates online.

Notice Period

The notice period depends on recruitment costs and salary benefits.

Employee Handbook

Please create an employee handbook. Refer to your appointment letter for guidance to cover various HR matters effectively.

I am available to assist if you are interested. For further information, please reach out to me.

Thank you.

Regards.