Regardless of if you are working for a startup company or an established business with no HR department, starting from scratch presents many challenges. Creating an entire HR department is hard work. Not only do you have to get everything organized, but must also handle a myriad of other tasks. From implementing a document management system to ensuring the right HR files are in place – there is quite a bit to do.
The good news is, with a few tips, the process can go much smoother than you imagined. Here you can review 10 must-have HR files to get your department up and running.
1. The Handbook
While the handbook may seem like a concept from a 1980s office based film and seem outdated for today’s modern business environment, this is just not the case. Handbooks are necessary regardless of the size of the business. The handbook makes employee expectations clear. Handbooks also have information about benefits, and what to do in various situations.
2. Create a Company Hierarchy
Create a document explaining the company structure. With this document in place, it can help you with future tasks. This includes outsourcing, workforce planning, etc. The structure can also determine salary grading and who reports to who down the road.
3. Put a Document Management System in Place
This isn’t a file, but still a necessary step. Having some type of employee self-service software in place is important. When you have some organizational structure available, it helps everything run smoothly. Also, when employees have access to it, they can see what is going on at all times. This helps to ensure no one feels like they are being left “in the dark” about important business matters.
4. The Salary Structure Document
In many businesses, this document is forgotten altogether, but you can avoid this. With this document, you can discover and plan salaries for different functions in the company. You can then compare and contrast those with the fair market value for similar positions. Make sure to revise this twice each year.
5. Attendance and Time Documents
Most modern HR departments aren’t focused on the “clock in/clock out” model anymore. However, you still may need an effective way to track employee attendance. This is when employee self-service software is also beneficial. With this in place, employees can easily keep track of time, which is also viewable by HR. This is often done on computers, phones, tablets, or other devices. It makes it easier and more convenient for everyone.
6. Expenses and Travel Tracking
It is important to create a policy that is easy to use. This makes sure that travel and expenses are tracked accurately. Many consumer based apps can help with this. However, you can also create a program in-house. This helps to minimize the potential for mistakes when it comes to expense tracking.
7. Performance Tracking
Measuring employee performance is tricky. However, if you take the time to develop a method that is adopted across the company, then you can easily keep track of this. Keep in mind, you need to update it regularly. As a company evolves, so do employees. As a result, the performance metrics may need to be changed from time to time.
8. Employee Time Off
How many employees do you have? Regardless of if it is one or 100, keeping track of requested time off is often a challenge. It is best to have HR files that outline how this needs to happen. When you have a process available for requesting time off, it is easier to keep track of. This also prevents confusion among other employees.
9. The Business Staffing Plan
If you are hiring for just a few positions, it may seem unnecessary to have a plan. However, it is important to know who is needed for various departments. It is also necessary to have documents that indicate when it is time for new employees. It is also beneficial to roughly calculate what losing an employee is going to cost your business. Knowing this helps you plan for the future.
10. Job Profiles
When creating a company, you need to know what positions are necessary. The job profile provides this information. It also includes the skills certain positions need to possess. The more information you include, the better you are to handle future hiring’s for this position.
The Bottom Line
When creating an HR department for a business, don’t let the challenges overwhelm you. With the information here, the process is simplified. A key factor for success is to stay organized. When you stay organized, you can minimize costly mistakes. Today’s businesses are mostly digital, too. This means it is best to avoid the “pen and paper” method if possible. It is definitely possible for your HR department to run smoothly. The key is to have the 10 documents, files, and tools in place from the beginning.