10 Documents Needed to Start HR Department from Scratch

June 16, 20204:26 pm457 views
10 Documents Needed to Start HR Department from Scratch
10 Documents Needed to Start HR Department from Scratch

The HR department has an in-depth position within organisations to ensure that businesses get the most out of their number one asset: employees. Hence, it is essential for business leaders to collaborate with or build their own HR department within their company. 

Setting up an HR department, however, can be challenging tasks. Not only do business leaders have to get everything organised, but there are other myriads of other tasks, such as implementing document management systems and ensuring the right HR files are in place. Creating an entire HR department team would also require experts who can help with employment acts and laws to ensure the business does not violate the laws, and thus end up in a scandal. 

HR in Asia has compiled a few tips on how to build an HR department from the ground up and what documents need to be prepared. Are you ready to take your business to the next level? Here are ten documents to prepare when building an HR team. 

Employee handbook 

Handbooks are necessary regardless of the size of the business. Handbooks should provide essential information, including employee benefits, work systems, personnel policies, etc. to make employee expectations clear. When creating an employee handbook, ensure that it is concise and readable by all employees, including employees with disabilities. 

Job profiles 

Job profile is a document for each role within your company and individuals who fill it. The job profile can include as much or as little information as necessary, such as what makes the current employee successful in the role, the priority employees would fulfil, etc. This document can also be used for multiple projects, like building outsourcing profiles for future hiring. 

See also: The Difference between People Operations & HR Management 

Employee contract agreement 

Contract agreement is the key term of the employment relationship. It is one of the most critical cover-your-ass (CYA) documents in the department of HR as it clarifies the dos and don’ts during and after employment, particularly is employment contract includes non-compete, confidentiality, and defamation clauses. To get your employment contract right, it is advisable to consult an employment lawyer who specialises in the industry. 

Hierarchical structure of the company 

Next, employers should create a document explaining the company structure as it can help with future tasks. This includes outsourcing, workplace planning, development planning, etc. The structure can also determine salary grading and who reports to who. For example, Manager A would manage team A and B, thus team A and B would report to manager A in the future job completion. 

Salary and compensation structure document 

Salary documents can help employers discover and plan salaries for different functions in the company. It can also help with the payroll system, especially in big companies with more than 100 employees. Salary document is also ensuring that employers stay above salary market competition, thus retaining and attracting top tiers in market industries. Note that this document should not be forgotten and should be revised once or twice a year, 

Leave document

On public holidays, employees would get their time off, but what about executives? Do they still need to attend a meeting even on holiday? These rules should be clear in a written statement, therefore, leave documents is crucial. It helps make clear what employers expect from their employees, C-suites, and other stakeholders. In this document, do also include vacation policy, sick policy, time off policy and holiday policy. Employers should also make things like permissions, notices, and time-off, specific and understandable by all stakeholders. 

Expenses and travel tracking 

Another essential job the HR department should do is to keep track of the company’s expenses, where the budget goes and most spent. Tracking company expenses also helps to keep track of company’s investment, such as have the company invested too much in employee development but employees’ performance is not improved? This tracking system can be done by collaborating with an application or company service or creating a program in-house. 

Staffing plan

Be it a small, medium, or large firm, developing a staffing plan is crucial as the business scales. It helps indicate when it is time to hire a new employee, when a former employee should be promoted or get salary increase, or to measure the retention and loyalty ratio. Along with this plan, employers should also have a system to keep track and contact with various candidates, hence, finding an ATS that can help streamline your business will be so much helpful. This plan is just simply helping your business grow in terms of managing employees. 

Training, development and performance 

As today’s employees and candidates demand career development from their employer, preparing this while building your HR department is recommended. The plan should cover all the schedule, process, or event that will help your employees gain knowledge and skills. Inviting guest speakers or encouraging employees to join volunteers are also helpful in terms of boosting employees performance. If employers cannot invite big name speakers to train employees, you can build a mentoring program, support professional initiatives or leverage vendors for useful training opportunities. 

Time reporting system 

This is a system that records, tracks and reports on employee exception hours outside of regular hours worked. This system helps reduce employee’s annual entitlement bank of paid absences to accurately reflect the decrease in liability. It also ensures productivity cost, overtime cost, excessive employment leave, and can completely eliminate the common scenario of employees coming back to their employer after they have left the company to claim overtime. 

Read also: New to HR? Here’s 4 Important HR Metrics and Its Function