Role Of Hr Department In An Organization – Getting HR right from the start has a huge impact on an organization’s success. Maybe your organization didn’t have an HR department and was doing just the bare minimum to get by. Or maybe you’re just starting out and wondering how to build an HR department from scratch.

The HR department not only helps ensure compliance, but also plays a key role in maintaining employee engagement and productivity. So how do you build an HR department? Here’s what you need to do!

Role Of Hr Department In An Organization

11. Identify the right time to start building an HR team 1. Research the state of human resources in your organization

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What have the founders and/or managers put in place in terms of hiring, policies, performance management and tools? Familiarize yourself with the current state of HR so you know where to start building your HR department. You can use the wheel below as a starting point to assess your current HR department:

Place each of the functions on a scale from 0 (where nothing exists) to 10 (the process is fully established and functioning well). This will be a good starting point for understanding whether a new HR department needs to start, develop or maintain a particular HR process.

So a combination of understanding your progress across HR departments and the most pressing needs will give you a good starting point for building your HR department.

Enrolling in the HR Generalist Certificate Program will equip you with everything you need to build an HR department from scratch. Furthermore, it will also help you avoid common mistakes when setting up an HR function in your organization.

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HR is responsible for managing the employee lifecycle, and your employee records are the starting point. You need to clearly understand how many employees you have and establish documents that are both legally necessary and will also help you in the long run as you work on your personal development plans.

Every employee needs a personnel file. Traditionally, this was on paper, but most organizations have developed digital systems to manage employee records. Here are some examples of documents you must keep:

You may find that there are many of these documents, but they are quite disorganized or informal. That’s fine – as long as you gather as much information as possible, start somewhere, and then build your HR records from there. Talk to all line managers and leaders in the organization and gather as much information as possible from them.

That would be your starting base. And then, for each of the above categories, create folders for each employee and start tracking. Work with your IT department to ensure you develop a safe and secure way to store these documents electronically. 3. Start formalizing policies

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Maybe you don’t have anything written down, maybe just some basic information. You can prioritize the most important policies and start writing them.

As you progress, you will probably find that some things go together and can be covered under one policy. Make sure that once you develop a policy, it is clear and easy to understand. Every employee should receive a copy and it should be easily accessible on your intranet site. 4. Set the foundations of the recruitment and induction process

We’ve developed a helpful checklist that you can use in each of these five stages. You can find it here: A Comprehensive Guide to Employee Onboarding (Including Checklist Templates!) 5. Document Your Compensation and Benefits Offered

Explore what you have in terms of compensation and benefit structures and continue to formalize and categorize it. Start with the bare minimum to make sure you’re compliant. This includes:

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To add to that, you can start developing a total rewards package, showing employees the total value you provide to them, which isn’t always monetary. This entails the following:

Later in the line, you can start adding benefits (eg wellness support, in-home daycare, free meals, etc.), but only do so once you have the basics down. A good understanding of the different types of compensation will help you create attractive compensation packages.

You may already have some tools (Slack, project management tools, etc.) as well as spreadsheets. Since you’re starting fresh, this is your chance to have an elegant and simple process without having to deal with legacy HR systems that might be holding you back. Some of the basic systems that need to be in place include:

Again, prioritize those systems that need to be in place to make your organization legally compliant, then add those that would improve your organization. For example, investing in an advanced HR data and analytics system may not be beneficial if your organization only has 20 employees. However, you also need to think long-term and acquire technology that can scale as your organization grows.

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HR plays an important role in ensuring that your organization is operational and that all employment laws are followed. At a minimum, you should review your country’s compliance guidelines for all guidelines listed above under “Start Formalizing Guidelines.”

Furthermore, in addition to the standard policies that should be in place, you also need to make sure that you have taken into account all local laws and regulations. What if your employees work from another state or country? Are there any laws specific to your industry? 8. Create a handbook for employees

Include basic guidelines in your employee handbook and share it with your employees. Also, add things like your organization’s values, mission statement, vision, and background information about the organization. There are many templates online or even tools to help you generate a handbook, such as Handbooks.io. 9. Lay the foundation for a learning and development plan

Helping employees acquire new skills and advance their careers is a vital function of the HR department. So you need to start learning and planning for development early when building your HR department.

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Understand where your organization is, where it’s going, and the skills you currently have within your workforce. Then identify the competencies needed to achieve your goals. You can do a skills gap analysis to understand what is there and what is missing.

Talk to all employees one-on-one or let line managers do it. It will provide an insight into the aspirations of each employee and what they see in their career, and will also serve as a starting process for individual development plans.

Based on an analysis of the gaps and needs of your organization and employees, create a library of purposeful training materials and courses. This will be a library that line managers can offer to employees or that employees can also search. In addition, it will also be helpful if you add any mandatory compliance training materials that every employee needs to complete.

As you progress, help each employee develop their own personal development plan. Provide them with the resources to do so (mentors, coaches, templates) and ensure they are logged and tracked. 10. Create an HR plan

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Engage in the HR planning process to identify your organization’s skills and capabilities needs and timelines from a long-term perspective. Creating such a plan will help you prioritize and manage your HR budget.

You will know which of the above mentioned components you need to focus on first. For example, if your organization is growing rapidly, establishing a solid recruitment and onboarding process will be a key priority. You can only do this properly if you understand your organization’s needs and map them out along a timeline. 11. Recognize the right time to start building an HR team

Who will you start hiring to expand your HR team? It will depend on your priorities and what you need the most help with. For example, if you are growing a lot, you may need a recruiter. Or you can consider an HR assistant/administrator to get more time for strategic tasks.

Before recruiting externally, look internally. There may be employees in the organization who could absorb some of the responsibilities of HR or want to move in that direction.

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Or you might start by hiring an HR person who can handle hybrid roles (eg recruiting and day-to-day HR activities). Again, this all depends on the needs of your organization.

Building an HR department in your organization will help you hire and retain good people, engage your employees and improve the overall performance of your business. Starting an HR department is no easy feat, but it will pay off massively in the near future.

And remember, you don’t have to start from scratch or build everything yourself. There are ready-made, customizable templates that you can use and start from there. Follow our comprehensive guides and templates to get started!

Future-proof your HR career by continuously expanding your skill set with the latest and most relevant HR skills.

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Eric van Wulpen is the founder and dean. He is an expert in shaping modern HR practices by bringing technological innovations into the HR context. He receives global recognition as an HR thought leader and speaks regularly

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