Starting an HR Department in a Startup: Where Should I Begin?

Hi, can somebody help me with how to set up a new HR department in a startup? I have recently joined a startup. I have understood the current company details but need more inputs from professionals. I am looking for real-time data and details, not just bookish data. I have found most of it, but I need an understanding of where to start from.

Awaiting response.

Thanks and regards,
Swapna

The Human Resources Department requires the necessary information to start from the Executive Committee Members in your organization. For that reason, you may ask them to list out what exactly should be the ideal requisition to set up the HRD. This can be made easier as per the treaties had with your team and the Exec Comm people. List the commonly executed parameters including hiring, payroll, IOC - interoffice communication, compliance, employee handbooks, labor law, and benefits management, etc. Install data-locked safeguards (for files to be kept secluded), ensure the IT Department is strong to keep the computers password-protected, implement biometric systems for attendance and leave tracking, and budget for other administrative and personnel requisitions.

An HR Generalist for steering the Human Resources Department can be hired, where an encouraging HR department would be responsible for hiring corporate ambassadors tasked with finding top talent at colleges and job fairs. Send department members to workshops devoted to helping HR professionals handle workplace violence, conflict resolution, mediation, and other incidents that pervade the work environment.

Manpower Planning for Your Startup HR Department

Good day! Regarding your startup with the HR Department, make sure to start with the manpower plan for your company. Begin by gathering information about what, how much, and when you are going to start hiring people. Identify the budget for the salaries to be paid and the recruitment needs for the organization. By answering these questions, you can start putting your plans and steps for starting.

Regards,
Yousef Naser
HR Specialist
[Phone Number Removed For Privacy Reasons]

Setting Up a New HR Department: Key Areas to Focus On

Bhakti Narang has provided a list of key areas where the HR Department needs to work. However, to set up a new HR Department, the following areas may be of priority to start with:

• **Attendance System:** The attendance can be marked either through a Biometric Access Machine or manually in registers with arrival and departure times.

• **Late Coming:** How many instances of late arrival are permitted for employees? Generally, 10 to 15 minutes of late arrival is allowed, subject to three or four occurrences in a month. Beyond that, half a day's leave should be deducted for each late arrival.

• **Leave Policy:** Casual Leave, Earned Leave, and Compensatory Leave are common types of leave. Generally, one Casual Leave after one month of service is allowed, subject to a maximum limit of 8 or 12 days as decided by the Management. Similarly, the quantum of earned leave is to be determined.

• **Policy for Overtime Payment:** Applicable if your company employs factory workers.

• **Personal Files:** These should be maintained with complete documents of educational and experience certificates, and other letters issued to an employee from time to time.

• **Performance Appraisal Forms:** Annual appraisal of employees' performance in a form suitable to the policy and needs of your company.

• **Disciplinary Rules:** Rules should be established to take action against employee misconduct. Penalties should be outlined in these rules.

• **Pay Structure:** Basic structure to be established for all employees according to the financial health of the company.

• **Recruitment Rules:** These rules should define the required minimum qualifications, experience, and pay package.

• **Training for Employees:** Conduct a need assessment to determine the required training.

• **Promotion Policy:** Necessary to maintain employee motivation.

• **Profit-Sharing:** Through payment of bonuses, etc.

• **Implementation of EPF, ESI, and Other Labor Welfare Measures:** From the date of joining employees.

• **Staff Welfare Programs:** Providing tea/coffee at employees' workstations, etc.

The above are illustrative examples to set up an HR Department in a new company. Suitable modifications/adaptations can be made as per your company's requirements. If you seek specific advice, you may email your query to [Email Removed For Privacy Reasons] for a suitable response.

With good wishes,

Regards,
C.M. Lal Srivastava

Staffing the HR Department

The members have given enough inputs on the tasks cut out for the HR Department. I just want to add that it is equally important to pay attention to staffing the department. You should know how much is the requirement of the staff. It should be neither too little to leave the department burdened nor too much to allow the staff to while away time in the department, which may prove to be a pain later as HR will have so much information that interests others.

The selection of candidates, therefore, needs to be looked into carefully. HR needs to be transparent while maintaining confidentiality with regard to certain matters as it may come to handle sensitive issues. Therefore, the people working in the HR department should have a certain degree of maturity, tact, and must be trustworthy.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai