Someone asked a similar question in 2007; I am just copying and pasting my previous answer. I am sure this would be of great help to you and others.
Basic Employee Needs
I would advise you to first fulfill the basic needs of the employees. Check if there are clean toilets, a canteen/pantry, if they get tea/coffee on time, if they are paid salary/incentives on time, what problems they have been facing, ask for suggestions, and spend time with them rather than sitting in your cabin. When you receive questions from employees, answer them yourself. Every company has a different working culture and different employees. It doesn't mean that my employees or your employees are different from each other.
HR Policy Manual
Usually, an HR Policy Manual consists of all HR Policies. Even the best companies with good HR practices may lack something in their HR Manual. The best way to write an HR policy is to start from the day and document all your problems or happenings.
Let's start from the day the office is opened. It must have working hours. Many people come late to the office, for which you need a policy on latecomers and set punishments accordingly. Some employees might be on leave or tours. You must have a tour policy structured by hierarchy, containing daily DA, food allowance, traveling class, and a format for reimbursement of these expenses. People may ask for advances before going on tours; hence, you should also have a money advance policy specifying the time frame for requesting advances. This will help manage situations where employees come back late from tours and do not settle the balance promptly.
Leave Policy
Regarding the leave policy, you can have CL, EL, ML, or any other policy, but ensure you follow all legal rules on leaves. Additionally, consider implementing policies such as:
1. Training policy (impose fines for nominated individuals who do not attend training, issue certificates, etc.)
2. Compensation policy including pay structure, incentive policy, conveyance, mobile expenses, bonuses, gratuity, and reimbursement timelines
3. Recruitment Policy (Manpower requirement form, sources, conducting interviews, referral schemes)
4. Selection Policy: Issue offer/appointment letters upon selection
5. Induction: Determine the duration of the induction process
6. Promotion Policy
7. Increment policy
8. Tours Policy
9. Advertisement Policy
10. Employee Grievance Policy
11. Uniform policy
12. ID Card policy
13. Loan Policy
14. Certificate policy (Salary certificates, address proof)
15. Probation or Non-probation policy
16. Employee Recreation Policy
17. List of holidays
18. Policy on working hours/weekly offs
19. Office Vehicle Usage policy
20. Overtime payment policy
21. Birthday celebration policy
22. Employee Reward and Recognition policy
23. Board of Directors
24. Organizational Structure
25. Laptop/PC usage policy
26. Leaves
27. Employee Personal File system
28. Employee Codes and Cadre (grades)
Starting the HR Department from Scratch
Since you are starting the HR department from scratch, focus on the following initially:
Employee Joining Formalities
1. Have an HRD form completed by the employee, supported by education, experience, medical, and character certificates, with 4 photographs (for Visiting card, ID card, Personal file, and an extra for future use). Assign a unique employee number like this example: WS01010703099 (WS for Workshop, location code, hierarchy level, month/year of joining, actual employee number, department prefix). Verify all documents submitted by the employee upon joining.
2. Before diving into PMS or other advanced HR processes, concentrate on infrastructure issues. Ensure there are enough seats in the canteen, employees wear uniforms (enforce rules if needed), and there is sufficient stationery for employees. Check if all their basic requirements are met.
I hope this information is useful for you.
Regards,
Umesh Chaudhary
[Email Removed For Privacy Reasons]