HR Department - What should be the ideal manpower strength to serve a listed company having white-collar employee?

Dear Seniors, Need your suggestion in identifying the ideal manpower strength for the HR dept.

Presently there are 3 people in the HR Team

Do you think it is sufficient & good enough to serve a listed company having white-collar employee strength around 500 & HR has to look after 6 Directors & 14 departments & process of decision making is more democratic, where any deviation or policy decision should be reviewed by at least 6+3 persons?

Every month we have at least 1 audit either its customer, statutory/regulatory, or internal.

We are working on a semi-automated system. (70% of systems are on manual operation).

The following activities are carried out in HR at present.

1) Recruitment to Separation administration, Induction, Onboarding.(Avg. 3-4 joining ).TAT we have to maintain of 30days & annual attrition not more than 14%.

2) Talent Retention Initiatives

3) Business Partner role with Department Heads

4) Performance Mgt.(Monthly tracking of performance-30-35 new hires till probation completion, Annual & half yearly appraisals) -Drawing useful insights from the appraisal data, compilation of Internal customer feedbacks for approx.80 employees having 2 to 4 internal customers.

5) Job description & KRA: Compilation, review, integration with Business Objective.

6) Compensation & benefits administration,

7) Disciplinary Action, Counselling, Conflict resolution,

8) Grievance Handling.

9) PoSH Compliance

10) Audit & Compliance(MOH & Customer, Statutory audits)

11) Training planner design & implementation.

12) Automation of HR-Detailing & negotiation with Programmer. Shifting to a new ERP system.

13) Handling Engagement activities(1 per month)

14) Develop Policies & procedures & oversee its implementation (Data & Trend analysis, capturing deviations), New initiatives, approvals & implementation

15) Medical check-ups

16) Cultural Integration of the new hire(Middle senior level)

17) Handling uncertainty like COVID, any change that is impacting org.structure.

18) Reporting to the Board of Directors.

Pls suggest do you think the above activities should be ideally carried out by 3 people in HR. Where 1 resource is only engaged in hiring. And the company has a collective decision-making system.

Infact it would be great to know that what will number of HR on average employees.

Please let us know whether Time office/Pay Roll Section is attached to HR Deptt. or is it a part of
your Finance & Accounts Deptt?

Payroll & Time office is under Personnel dept.

What is the total strength of your Personnel deptt.

Dear Akansha,

With 500 employee strength, 70% automation and broad functions of HR currently handled , I suggest following structure:

1.The total strenth of HR including you could be 5 professionals.

2. The functions you have stated may be grouped as under:

* Strategic, policy making, and critical areas like Annual performance Appraisals, Compensation management and the like and overseeing HR implementation-with Head of HR

*. Recruitment and selection, on boarding, probationary appraisal and exit , employee engagement

* Employee relations- Employee records, disciplinary matters grievance handling, posch, labour law copmliance, liasion with govt authorities

* Training /Learning - implementation of planned Trg activities, Trg effectiveness feedback, assist in trait need analysis, records ,

* Personnel Administration-Time office, leave, payroll administration, exit formalities , records etc

I have given broad overview and considering overall effectiveness of service , pdelivery , you may regroup functions as per ground realities.

My other learned colleagues may like to chip in and improvise.

Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant

With 70% of manual operations, it is difficult to manage 14 Departments with 500 employees by the team of 02 to 03 employees in Hr Department.

My Take is All the activities under the purview of HR must be analyzed based on critical and non critical activities, scheduled and periodical activities.

Having said this The function wise HR department must have KPIs and KRAs worked out.

Then based on the work load and criticality of the HR functions internal depart in HR be formed considering present and future needs.

Like

1)Hr/ IR Policies and administration & Records - 03

2) Training, recruitment selection and on boarding -02

3)Employee Wages Compensation, pay role, statutory compliance and FnF Settlement - 03 (Manual ) or 02 With HRIS automation.

4)Employee Welfare and engagement - 02

5) Employee assessment and performance - As required (As this shall include other department heads and Administration Department).

The Above organization set up if skilled enough can manage employees up to 1200 to 1500 Employees with best given resources.

It is also important to ensure that the policies be formed with due care to accept change and exceptions as and when required with best of the directives and planning measures escalated by the directors.

Last but not the least every department or individual in the organizations must be made aware of HR policies and procedures before implementation through wide publicity.

Remember that happy and empowered employees contribute the best to organization when the Human resource department ensures that their care is taken of considering their personnel growth, safety and their families welfare.

The ideal strength for HR Deptt is 1:100. This being the ratio, 5 in HR should be sufficient
to take care of the present load.