Starting from Scratch: How Do I Set Up HR Policies for a New Non-Voice BPO?

Dear Members,

I am going to join a recently started non-voice-based BPO. I will be responsible for setting up the HR department. I would be required to set up policies starting from salaries, leave, compensation, appraisals, and almost everything. Please suggest how should I start and what would be the framework along with the 'Must Have' policies.

Regards,
Rune

Hi Rune,

How big is the organization? Probably, I can help you out if you could give some details of your organization's needs.

Regards,
Berny

Hi Rune,

I have worked on an employee handbook of policies for my previous company. Attached below is the document, which I believe will help you in formulating policies for your company.

Dear Berny,

Thank you very much! The information is really useful.

About the organization: It is a newly launched company, an ITES wing of an established organization in manufacturing industrial products. Initially, it will have around 30 employees. The processes will involve publishing, graphics, web-based help desk, etc.

Thank you very much for your help.

Regards,
Rune :)

Hi Rune,

I'm glad this document is helpful to you. You can make amendments to policies as per your company's requirements; however, any changes must be approved by the Head of Department (HOD).

Regarding compensation, it depends on the individual's profile, experience, skills, expertise, and knowledge. If you have a Management Information Systems (MIS) or workforce team, they will provide an estimate of the Full-Time Equivalent (FTE) and then the HR payroll will handle the salary breakdown. Additionally, there are different salary slabs for different profiles.

If you need more information, please let me know, and I'll do my best to assist.

Regards,
Berny

Hi Rune,

I would also like to know about the current openings in your organization. I have an excellent person to recommend for the Manager MIS/Workforce Management position. If interested, please let me know so that I can forward his resume to you.

Regards,
Berny

Dear Berny,

Can you please guide me on calculations for the salary components? I understand it would vary for positions according to the skill sets, experience, and other particulars. But is there a standard for calculation? I have a basic idea about it but would really appreciate it if you could guide me on this. Also, what components would vary from state to state (location) or from one industry to another (I mean BPO).

Regards,
Rune

Dear Berny,

Where is the candidate located? This company is going to operate from Pondicherry. I will let you know once I have an idea about the vacancies in his skill area. You can ask him if he will be ready to relocate.

Regards,
Rune

Hi Rune,

This is what I know about salary. First of all, basic salary varies from 30-60% of the gross salary. Secondly, HRA also varies from 40-60%; however, some companies keep it at 30%.

Here's how we calculate salary (components of salary):
(A) Basic Salary + HRA + DA
(B) Conveyance + Medical + Other / Special Allowance if any
(C) Employer's Contribution for PF (12% of Basic)
Employer's Contribution for ESIC (4.75% of Gross)
(D) Employee's Contribution for PF (12% of Basic)
Employee's Contribution for ESIC (1.75% of Gross)
Gross Salary = (A) + (B)
CTC = (A) + (B) + (C)
Net in Hand = (A) + (B) - (D)

Breakup of salary as follows:
- Basic: 30%
- HRA: 40%
- Conveyances: 25%
- Medical: 10%
- Other: 5%

Hope this will be useful for you.

Regards,
Berny

Thank you, Berny!

It's good and very informative. Gives an idea about salary calculation right from the beginning (first step). Thanks again!

I will be writing to you about the candidate separately.

Regards,
Rune

Hi Rune HRu,

I am working in a non-voice-based BPO. I was asked to prepare the HR policies for my company. Can you share your prepared HR policies as an outline to help me prepare my company's HR policies?

Thank you.

Hi Mr. Berny,

How are you?

It's really useful for salary calculation. Could you help me out in preparing the HR policies for BPO?