Starting an HR department (2)
One of the first assignments is to ensure that the company organogram is ready and being used. An organogram is a diagram that shows the structure of an organisation and the relationships and relative ranks of its parts and positions/jobs. This must show the true end picture of the organisation.
HR should work with management to gain an understanding of the short- and long-term staffing needs and budget to develop a manpower plan. This will determine the composition and content of the workforce required to position the organisation for current and future business objectives. Working with management, HR will create a three- to twelve-month staffing plan and budget to determine how much time and activity need to be expended on properly staffing the organisation.
HR needs to start off by compiling a comprehensive staff requirement list. HR works with hiring managers to lay out a recruitment strategy. This is a good time to raise concerns about the assignment, such as an insufficient budget allocation. The recruiting plan should include skill sets required, HR officials involved in the interviewing process and responsible for hiring decisions, sources to be used (such as recruitment consultants), realistic timelines, and resources required (budget, staff time and training).
HR should then determine the best sources for meeting the staffing needs such as, networking, organisation website job postings, recruiting firms, employee referrals and career fairs.
The hiring process includes multiple steps and various practices including application forms, interviews and pre-employment testing. They produce the employment offer and oversee the onboarding process.
A job description is a useful, plain-language tool that explains the tasks, duties, function and responsibilities of a position. It details who performs a specific type of work, how that work is to be completed, and the frequency and the purpose of the work as it relates to the organisation’s mission and goals.
Job descriptions are used for a variety of reasons, such as determining salary levels, conducting performance reviews, clarifying missions, establishing titles and pay grades and as a tool for recruiting. Job descriptions are useful in career planning, capacity building and establishing legal requirements for compliance purposes. A job description gives an employee and supervisor, a clear and concise resource to be used as a guide for job performance.
A fair and competitive pay structure is a major aspect in attracting and retaining talent. This must be built from scratch by gathering information. Determining the sources of external market data, getting it, and conducting analysis. Developing the pay structure and calculating the cost.
The organisation needs to determine mandatory and voluntary benefits it wants to provide. Does it want to offer any paid holidays or other paid time off such as sick, personal days?
Other valuable benefits include group health benefits, life insurance and pension and retirement plan options. You need to comply with the employment laws on required benefits.
Small organisations may start off providing only a few benefits and increase as they grow. Some may want to offer a comprehensive benefits package to help attract and retain talent. Some use benefits brokers to obtain benefits quotes and compare benefits offerings against the budget.
Read also: Starting an HR department (1)
The employee handbook is to communicate workplace culture, benefits and employment policy information to employees. It informs about the organisation’s employment practices, benefits, equal opportunity commitments, attendance guidelines, pay practices, leave-of-absence procedures, safety issues, labour relations matters and consequences for misconduct.
Human resource records are the repository of personal, organisational and legal data and documents concerning individual employees and their relationship with the employer. Many liability issues can result from improperly maintaining employment records.
The performance review process includes both continuous informal feedback and periodic—usually annual—formal feedback. HRM are the ones who write and administer the performance management system. Having an educated HR team that is well-prepared to train the organisation’s managers in the system and to assist them when they have issues or questions is critical to the smooth functioning of the process.
New organisations must be registered with the tax authorities for payroll purposes. Depending on the size and structure of the organisation, these functions may be handled by the accounting or finance department.
Setting up a payroll system is a high priority. HR professionals can learn this and easily deliver or choose to may work with a payroll vendor to help reduce administrative burden and to assist with payroll compliance. Outsourcing to third-party administrators for payroll and related tax duties helps busy ones meet filing deadlines and deposit requirements.
Payroll must be administered regularly. The organisation needs to determine if this will fall under human resources or finance. The payroll administrator must understand all wage laws, including minimum wage, overtime pay and eligibility, meal and rest break, record-keeping, and how to determine hours worked.
Finally, for now, the workplace must be a safe environment and the onus is on the organisation to make it so. The workplace must be free from recognised hazards that are causing or are likely to cause death or serious physical harm to any employee.
The above is a few of the things that HRM must set up to have good success. Have a great weekend.