Hi,
I am new to this forum, but I can see it's great. I need some advice since I have been hired to start a Human Resource department in a small privately-owned company that has been working without one for quite a long time. It's about 160 employees. The turnover is over 50%, guidelines for hiring are not followed, and everybody was doing some of the responsibilities of an HR manager.
I have some ideas on how to start, but I think I can get some help from all the experienced HR experts here. Thanks. If you want me to be more specific, just ask.
Sal
From United States,
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I am new to this forum, but I can see it's great. I need some advice since I have been hired to start a Human Resource department in a small privately-owned company that has been working without one for quite a long time. It's about 160 employees. The turnover is over 50%, guidelines for hiring are not followed, and everybody was doing some of the responsibilities of an HR manager.
I have some ideas on how to start, but I think I can get some help from all the experienced HR experts here. Thanks. If you want me to be more specific, just ask.
Sal
From United States,
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Hi Salrod,
It is great to hear that you are starting up an HR department in your organization. This is, in my opinion, one of the most challenging tasks an HR professional can undertake in their entire career.
"Turnover is over 50%, guidelines for hiring are not being followed, and everybody is handling some of the responsibilities of an HR manager."
Regarding turnover, you can address this once you have most of the things mentioned below in place.
As for everyone handling HR responsibilities due to the lack of a formal HR department, it will be a challenging task to reclaim those responsibilities. I suggest building friendly relationships with all employees and functional heads and gradually taking back those responsibilities by politely stating, "Hey, I have some free time, why don't you let me handle that task?" Be specific about the responsibility you would like to take back.
If this approach does not yield results, you can circulate a new job description to all functional heads from the MD's office.
Some key areas you need to focus on include:
- Recruitment & Selection
- Employment Policies and Procedures
- Personnel Files
- Employee Relations Issues
- Employment Law Compliance
- Record-Keeping
- Employee Communication
- Employee Departures
I hope this helps you in setting up the HR department effectively.
From India, Ahmadabad
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35It is great to hear that you are starting up an HR department in your organization. This is, in my opinion, one of the most challenging tasks an HR professional can undertake in their entire career.
"Turnover is over 50%, guidelines for hiring are not being followed, and everybody is handling some of the responsibilities of an HR manager."
Regarding turnover, you can address this once you have most of the things mentioned below in place.
As for everyone handling HR responsibilities due to the lack of a formal HR department, it will be a challenging task to reclaim those responsibilities. I suggest building friendly relationships with all employees and functional heads and gradually taking back those responsibilities by politely stating, "Hey, I have some free time, why don't you let me handle that task?" Be specific about the responsibility you would like to take back.
If this approach does not yield results, you can circulate a new job description to all functional heads from the MD's office.
Some key areas you need to focus on include:
- Recruitment & Selection
- Employment Policies and Procedures
- Personnel Files
- Employee Relations Issues
- Employment Law Compliance
- Record-Keeping
- Employee Communication
- Employee Departures
I hope this helps you in setting up the HR department effectively.
From India, Ahmadabad
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Thanks for your advice i think is a good way to start. I think changing everything around from the beginning will be unwisely. thanks one more time sal
From United States,
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From United States,
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I am interested to know what type of organization you are attempting to formulate an HR strategy. Manufacturing (products, multi-plant operation, etc.); Financial (Bank, Broker, Mortgage, etc.); Service (Transportation, delivery, cleaning, etc.); Government (State, Federal, local).
How much experience do you have in the type of organization you are currently in?
Are any of your employees represented? Name of Union representing them. If represented, when does the labor agreement expire?
Before you begin to embark on any organizational change, I recommend that you develop an overview of your vision of the role of HR in the organization. Then arrange for a meeting with the President (Owner?) and whoever hired you (if it wasn't the President) to present your plan and ask for critique and input. You need to get their 'buy-in' before you continue. You need to know, from the start, how committed Senior Management is to making the drastic changes you are contemplating. The initial meeting and subsequent follow-up meetings will provide you with the level of approval/commitment/support for your plan. (As they, or he, as the case may be, begins to inject some ideas/changes, the plan becomes his/her plan and thus has a built-in mechanism for approval.)
The next step is to arrange an "introductory meeting" with the President's direct reports and the next lower level, i.e. Vice-presidents and Directors. The purpose of this meeting is to introduce the plan and enforce the idea that the old ways of doing business need to change for the organization to continue as a viable operation. No longer will different Departments interpret Company Policy, that's HR's job. HR will begin to act as a resource, a consultant, an expert in everything from Affirmative Action to Safety/Worker Compensation.
I think the major problem you have is turnover - 50% (per year?) - is extraordinarily high. Theoretically, you have a new workforce every two (2) years. That is not acceptable, especially when it costs between $20,000 and $30,000 to replace an employee. Even then, the return on that investment is years away unless the new employee has skills and experience which are far above those of your former employee. You must find out what the root problems are. Why are people leaving the organization - compensation, benefits, recognition, problem-solving, communications, respect, participation (ideas solicited and acted on), favoritism, lack of challenges, other issues?
To get an understanding of the reasons people are leaving the organization, you have to survey (ask) them (salaried as well as hourly).
Survey questions should be open-ended, allowing the ex-employee latitude to express his/her feelings. One question might be: "What changes would have to be made before you considered re-applying at ABC Co.?" Another would be "Would you encourage a family member/relative/friend to apply for work at ABC Co.? WHY: "
Other questions should address major issues, mentioned above, as well as safety, shift selection, and working conditions.
Mail the surveys to ex-employees who have departed voluntarily within the past two (2) years, deleting those who have not accrued more than 60 days of seniority. Enclose a stamped envelope self-addressed to: Consultant, PO Box xxx, Yourtown, State, Zip. Respondents will believe that a neutral 3rd party will be receiving and analyzing responses and formulate recommendations/action plans for Senior Management.
This perception will allow the respondents to be more open and forthright.
Remember, that if you don't uncover the root cause of the high turnover experienced by your organization, the other relevant items that Ajmal laid out will be of no consequence.
Don't get discouraged if the response is low. I've read that the average response rate for all surveys is between 5-7%.
Addressing Recruiting/Selection I would recommend a simple straightforward approach: "ABC Co. is looking for a few good employees. Available positions are: _____________________. Experience preferred but will train the right person. Interested parties should mail their resumes to: HR, ABC Co, 123 Main Street, Yourtown, State, Zip, or come in and fill out an application. To learn about our alternative interviewing project, call XXX-xxx-xxxx. WE DO DRUG TESTING. eoe."
The "alternative interviewing project" is merely an "after-hours" process whereby candidates who are presently working can submit applications without taking time off. Such "project" is usually effective if held Friday nights, from 7 - 9:30 PM, and all day Saturday (10:00 AM - 7:00 PM).
In addition to the above, "flyers" can be distributed in neighborhoods - supermarkets, barber/beauty shops, houses of worship, etc. - with the same information as in the formal advertisement.
The 1st Step in the interview process is usually "screening", separating the wheat from the chaff. That's HR's job. Next, the initial interview, that too is HR's job; the second interview, with a representative from the Department. Depending on the position, it could be a supervisor or the Department Head. HR should "sit-in" on the interview to assure that no EEOC violations occur.
At each step, a summary of the interview should be reduced to writing, in the event a candidate claims a violation of his/her employment rights.
Recruitment & Selection
Employment Policies and Procedures (Statutory Compliance)
Personnel Files & Record-Keeping Issues
Employee Relations Issues
One he didn't mention, and I'm sure it was an oversight, was Safety. Employees must be aware that Management is concerned about their safety. Management must also be aware that an unsafe workplace could be a major cause of turnover. In addition, the hidden cost of workplace accidents in terms of lowered morale and loss of production makes Safety a "bottom-line" issue.
Otherwise, the slogan "Employees are our most important asset" is without meaning.
From United States,
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How much experience do you have in the type of organization you are currently in?
Are any of your employees represented? Name of Union representing them. If represented, when does the labor agreement expire?
Before you begin to embark on any organizational change, I recommend that you develop an overview of your vision of the role of HR in the organization. Then arrange for a meeting with the President (Owner?) and whoever hired you (if it wasn't the President) to present your plan and ask for critique and input. You need to get their 'buy-in' before you continue. You need to know, from the start, how committed Senior Management is to making the drastic changes you are contemplating. The initial meeting and subsequent follow-up meetings will provide you with the level of approval/commitment/support for your plan. (As they, or he, as the case may be, begins to inject some ideas/changes, the plan becomes his/her plan and thus has a built-in mechanism for approval.)
The next step is to arrange an "introductory meeting" with the President's direct reports and the next lower level, i.e. Vice-presidents and Directors. The purpose of this meeting is to introduce the plan and enforce the idea that the old ways of doing business need to change for the organization to continue as a viable operation. No longer will different Departments interpret Company Policy, that's HR's job. HR will begin to act as a resource, a consultant, an expert in everything from Affirmative Action to Safety/Worker Compensation.
I think the major problem you have is turnover - 50% (per year?) - is extraordinarily high. Theoretically, you have a new workforce every two (2) years. That is not acceptable, especially when it costs between $20,000 and $30,000 to replace an employee. Even then, the return on that investment is years away unless the new employee has skills and experience which are far above those of your former employee. You must find out what the root problems are. Why are people leaving the organization - compensation, benefits, recognition, problem-solving, communications, respect, participation (ideas solicited and acted on), favoritism, lack of challenges, other issues?
To get an understanding of the reasons people are leaving the organization, you have to survey (ask) them (salaried as well as hourly).
Survey questions should be open-ended, allowing the ex-employee latitude to express his/her feelings. One question might be: "What changes would have to be made before you considered re-applying at ABC Co.?" Another would be "Would you encourage a family member/relative/friend to apply for work at ABC Co.? WHY: "
Other questions should address major issues, mentioned above, as well as safety, shift selection, and working conditions.
Mail the surveys to ex-employees who have departed voluntarily within the past two (2) years, deleting those who have not accrued more than 60 days of seniority. Enclose a stamped envelope self-addressed to: Consultant, PO Box xxx, Yourtown, State, Zip. Respondents will believe that a neutral 3rd party will be receiving and analyzing responses and formulate recommendations/action plans for Senior Management.
This perception will allow the respondents to be more open and forthright.
Remember, that if you don't uncover the root cause of the high turnover experienced by your organization, the other relevant items that Ajmal laid out will be of no consequence.
Don't get discouraged if the response is low. I've read that the average response rate for all surveys is between 5-7%.
Addressing Recruiting/Selection I would recommend a simple straightforward approach: "ABC Co. is looking for a few good employees. Available positions are: _____________________. Experience preferred but will train the right person. Interested parties should mail their resumes to: HR, ABC Co, 123 Main Street, Yourtown, State, Zip, or come in and fill out an application. To learn about our alternative interviewing project, call XXX-xxx-xxxx. WE DO DRUG TESTING. eoe."
The "alternative interviewing project" is merely an "after-hours" process whereby candidates who are presently working can submit applications without taking time off. Such "project" is usually effective if held Friday nights, from 7 - 9:30 PM, and all day Saturday (10:00 AM - 7:00 PM).
In addition to the above, "flyers" can be distributed in neighborhoods - supermarkets, barber/beauty shops, houses of worship, etc. - with the same information as in the formal advertisement.
The 1st Step in the interview process is usually "screening", separating the wheat from the chaff. That's HR's job. Next, the initial interview, that too is HR's job; the second interview, with a representative from the Department. Depending on the position, it could be a supervisor or the Department Head. HR should "sit-in" on the interview to assure that no EEOC violations occur.
At each step, a summary of the interview should be reduced to writing, in the event a candidate claims a violation of his/her employment rights.
Recruitment & Selection
Employment Policies and Procedures (Statutory Compliance)
Personnel Files & Record-Keeping Issues
Employee Relations Issues
One he didn't mention, and I'm sure it was an oversight, was Safety. Employees must be aware that Management is concerned about their safety. Management must also be aware that an unsafe workplace could be a major cause of turnover. In addition, the hidden cost of workplace accidents in terms of lowered morale and loss of production makes Safety a "bottom-line" issue.
Otherwise, the slogan "Employees are our most important asset" is without meaning.
From United States,
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this is a great opportunity! If you are looking for examples of specific HR policies, let me know and I’ll try to send you examples from the organisations I am connected with.
From Australia, Ballarat
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From Australia, Ballarat
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Hi, Bill,
Your advice is excellent. This is a production company that manufactures tools. It is not unionized, privately owned, and has a very small upper management team.
I was thinking of meeting with the owner and CFO to present my plan of action to them. I was going to start with my plan to hire the needed people to reach full capacity. This process will be different from what was done before, as I will follow my plan for recruiting, which more or less aligns with the one you outlined in your response.
Give your opinion.
After I choose the ones who meet the criteria for the positions, I will interview them. If I think they are suitable for the job, I will ask for a background check report. This way, if the background check is unfavorable, we will not proceed further. If the background check is acceptable, then I will bring them to a preliminary orientation. During this orientation, I will explain company policies, compensation, safety issues, and more. They will also meet with supervisors and managers, providing them with an overview of the company. This will give them the chance to decide if our company is where they want to work.
All those who decide to move forward and whom I decide to hire will be asked to take a drug test. I will request them to cover the cost of the drug test. I believe that if a person knows they will not pass the drug test, they will not agree to pay for it. This is another way to screen out individuals who may not meet our standards.
After we offer them the job and conduct a half-day formal orientation, where they will meet the president and go through other necessary procedures before heading to their workstations.
It may seem very lengthy, but I believe one of the past issues was that the hiring process was too short.
Thanks for the advice.
Sal
From United States,
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Your advice is excellent. This is a production company that manufactures tools. It is not unionized, privately owned, and has a very small upper management team.
I was thinking of meeting with the owner and CFO to present my plan of action to them. I was going to start with my plan to hire the needed people to reach full capacity. This process will be different from what was done before, as I will follow my plan for recruiting, which more or less aligns with the one you outlined in your response.
Give your opinion.
After I choose the ones who meet the criteria for the positions, I will interview them. If I think they are suitable for the job, I will ask for a background check report. This way, if the background check is unfavorable, we will not proceed further. If the background check is acceptable, then I will bring them to a preliminary orientation. During this orientation, I will explain company policies, compensation, safety issues, and more. They will also meet with supervisors and managers, providing them with an overview of the company. This will give them the chance to decide if our company is where they want to work.
All those who decide to move forward and whom I decide to hire will be asked to take a drug test. I will request them to cover the cost of the drug test. I believe that if a person knows they will not pass the drug test, they will not agree to pay for it. This is another way to screen out individuals who may not meet our standards.
After we offer them the job and conduct a half-day formal orientation, where they will meet the president and go through other necessary procedures before heading to their workstations.
It may seem very lengthy, but I believe one of the past issues was that the hiring process was too short.
Thanks for the advice.
Sal
From United States,
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Hi Numero Uno,
I would love to have those...please send what you think may help me on this. Tomorrow is my first day...I will keep everybody posted. I think this is going to be everybody's project for this summer....jajaja. Are you Hispanic? Just for the sake of curiosity...I am from Puerto Rico, just in case. Gracias, amigo.
Sal
From United States,
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I would love to have those...please send what you think may help me on this. Tomorrow is my first day...I will keep everybody posted. I think this is going to be everybody's project for this summer....jajaja. Are you Hispanic? Just for the sake of curiosity...I am from Puerto Rico, just in case. Gracias, amigo.
Sal
From United States,
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I’ll have a look through the files at work and see what I can send. I am from Australia (Adelaide)
From Australia, Ballarat
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From Australia, Ballarat
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Sal,
I think you're on the right track. However, I do have a few suggestions.
First, inform candidates upfront that a drug test (urine is quickest while hair samples are more comprehensive) is part of the hiring process. You could put that information in the ad and also put a similar notice next to the applications in the HR office. I have found that using this method guarantees that undesirable candidates will pre-screen themselves, as well as forewarns others that a drug test is part of the process.
I would not ask candidates to pay for the drug test. As far as I know, the cheapest test is $50.00. The top-tier candidates will likely refuse unless they know that they'll be reimbursed if they are found to be "clean". The other perception candidates may have is that the company is cheap - "has its hands in my pocket before I've even started to work." I think that starts people off on the wrong foot, which may be a contributing factor in the high turnover rate.
I like your plan for orientation, especially "meet the President". He or she can explain how the company got started, what the products are, and what is expected of employees. The president's message should be one of welcome, promoting the company as viable and growing due to the efforts of all employees, and closing with the message that employee problems are important and will be addressed through an "open door" approach to supervisors and Human Resources.
I would ask that you consider a "mentor" for each Department. A knowledgeable, seasoned employee, not a manager or supervisor, to be available to answer questions and concerns, as well as provide guidance to the new employee.
Glad to be of assistance. If you have any future issues or concerns, feel free to contact me via email.
Thank you.
From United States,
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I think you're on the right track. However, I do have a few suggestions.
First, inform candidates upfront that a drug test (urine is quickest while hair samples are more comprehensive) is part of the hiring process. You could put that information in the ad and also put a similar notice next to the applications in the HR office. I have found that using this method guarantees that undesirable candidates will pre-screen themselves, as well as forewarns others that a drug test is part of the process.
I would not ask candidates to pay for the drug test. As far as I know, the cheapest test is $50.00. The top-tier candidates will likely refuse unless they know that they'll be reimbursed if they are found to be "clean". The other perception candidates may have is that the company is cheap - "has its hands in my pocket before I've even started to work." I think that starts people off on the wrong foot, which may be a contributing factor in the high turnover rate.
I like your plan for orientation, especially "meet the President". He or she can explain how the company got started, what the products are, and what is expected of employees. The president's message should be one of welcome, promoting the company as viable and growing due to the efforts of all employees, and closing with the message that employee problems are important and will be addressed through an "open door" approach to supervisors and Human Resources.
I would ask that you consider a "mentor" for each Department. A knowledgeable, seasoned employee, not a manager or supervisor, to be available to answer questions and concerns, as well as provide guidance to the new employee.
Glad to be of assistance. If you have any future issues or concerns, feel free to contact me via email.
Thank you.
From United States,
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Hello Sal,
Hope you are enjoying your job!
"Turnover is over 50%, guidelines for hiring are not followed, and everybody was doing something of the responsibilities of an HR manager."
Try to figure out why this is happening in your organization. Do some research work, analyze the data.
Data Analysis:
1) WHO LEFT?, WHY LEFT?, FROM WHICH DEPARTMENT?, TURNOVER RATE / DEPARTMENT, STUDY EXIT INTERVIEW DATA.
What I think the reasons could be:
1) Lack of coordination between various departments or staff members
2) Lack of sound HR policies and procedures
3) Improper structure
Try to at least meet and discuss this with top management, try to analyze them, what are the top-level management philosophy and what is their vision. Then try to follow other things XYZ.
From India, New Delhi
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Hope you are enjoying your job!
"Turnover is over 50%, guidelines for hiring are not followed, and everybody was doing something of the responsibilities of an HR manager."
Try to figure out why this is happening in your organization. Do some research work, analyze the data.
Data Analysis:
1) WHO LEFT?, WHY LEFT?, FROM WHICH DEPARTMENT?, TURNOVER RATE / DEPARTMENT, STUDY EXIT INTERVIEW DATA.
What I think the reasons could be:
1) Lack of coordination between various departments or staff members
2) Lack of sound HR policies and procedures
3) Improper structure
Try to at least meet and discuss this with top management, try to analyze them, what are the top-level management philosophy and what is their vision. Then try to follow other things XYZ.
From India, New Delhi
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Hello Sal,
To eradicate the turnover issue, I would suggest that you immediately prepare an employee satisfaction survey with a clear objective, i.e., retention and improvement. Conduct the survey within the organization as soon as possible. Ask employees to provide their input on each factor and ensure that the survey forms are anonymous to obtain an objective overview and diagnose the real causes of the issue. After the survey is conducted, prepare a report based on the collated data.
Place a suggestion dropbox in every department and consider the suggestions when implementing changes. Improve the areas highlighted by good suggestions in the current process and acknowledge that certain changes have been made for the betterment and improvement of the organizational culture due to employee feedback.
Conduct reviews with every department head regarding the issue and compile a report based on those reviews, identifying factors such as salary concerns, job responsibilities, compensation plans, and interactions with seniors that may contribute to the turnover issue. Submit the report to top management, outlining areas for improvement and providing suggestions.
Review and refine the process for conducting exit interviews. Develop an exit interview form that includes all factors that could potentially have an impact.
Redefine job roles and job descriptions as needed.
These are immediate measures that can be taken to diagnose and address the turnover issue.
From China, Guangzhou
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To eradicate the turnover issue, I would suggest that you immediately prepare an employee satisfaction survey with a clear objective, i.e., retention and improvement. Conduct the survey within the organization as soon as possible. Ask employees to provide their input on each factor and ensure that the survey forms are anonymous to obtain an objective overview and diagnose the real causes of the issue. After the survey is conducted, prepare a report based on the collated data.
Place a suggestion dropbox in every department and consider the suggestions when implementing changes. Improve the areas highlighted by good suggestions in the current process and acknowledge that certain changes have been made for the betterment and improvement of the organizational culture due to employee feedback.
Conduct reviews with every department head regarding the issue and compile a report based on those reviews, identifying factors such as salary concerns, job responsibilities, compensation plans, and interactions with seniors that may contribute to the turnover issue. Submit the report to top management, outlining areas for improvement and providing suggestions.
Review and refine the process for conducting exit interviews. Develop an exit interview form that includes all factors that could potentially have an impact.
Redefine job roles and job descriptions as needed.
These are immediate measures that can be taken to diagnose and address the turnover issue.
From China, Guangzhou
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