In this fast-paced life and the rush of growing businesses, SMEs and startups have a huge load of work ahead of them. It often gets difficult for organizations to take time and establish solid HR-related strategies. If there exists an HR department at all, growing businesses and startups have small units that may only have one person on the team. But even if you have a one-person HR team, hire experienced professionals who can manage recruitment, payroll, performance, benefits & compensation, onboarding, and training among other HR operations.
When you are looking to grow, it is important to establish an HR department early on so that the future becomes smooth and organized. HR policies are created to add to the effectiveness of work processes. Moreover, you can easily take care of the internal issues that arise when you least expect any trouble with the help of well-drafted company policies and procedures..
A well-defined HR policy is set to achieve several objectives:
- Tethers employees together and helps in implementing the procedures consistently and fairly across the company
- Preempts clashes between employees and the employer about their rights and obligations in the organization
- Helps entrepreneurs save their valuable time & resources on policy disputes or potentially legal troubles
- Spikes worker morale, maximizes employee loyalty, and reduces vulnerability to legal penalties
While formulating HR policies, the HR department of a startup should take care of the following factors:
HR Department Policy Factors
- Employee Ethical Behavior: Focus on the importance of ethical behavior of and towards your employees. Unethical conduct inside the company is often a result of poor company culture and must be addressed by HR.
- At Will Employment: Clearly highlight that the employee or employer can end the employment agreement at any time, providing that the business is in an at-will state.
- Policy Modifications: Always reserve your company’s right to update/change the policies, as and when required..
Must-Have HR Policies For Start-Ups: A Checklist
If you have no plan in place for your startup, it is your HR professional’s duty to develop an HR department from scratch. This can be done by following a step-by-step HR department startup checklist and investing time in implementing each policy and procedure in a way that best suits your business’s requirements.
As a startup, you need to establish policies based on the following elements which will give a strong foundation to the organization and eventually drive your business forward.
| 1. Organizational Design |
| 2. Onboarding & Recruitment Procedures |
| 3. Compliance Safety & Health Regulations |
| 4. Compensation & Benefits |
| 5. Employee Relationships |
6. Training & Performance Management Methods | 7. HR Management Tools & Software | 7. Plan of Action |
Effective HR policies minimize your company’s liability and enhance employee experience. When you think of setting up an HR department in your startup, it is nothing more than creating policies, plans, and procedures to streamline short-term needs and mitigate the long-term risks of your company.
when it comes to developing a successful HR unit, here are a few more tips to remember
- Company develops its own culture whether you create one or not. So, focus on making it intentional and in alignment with your objectives.
- Determine your company’s core values and tell HRs what you expect so that new employees that reflect your company values can be hired.
- Start with developing and retaining top talent in leadership to build a great company.
- Keep your HR procedures simple and adaptable so it can change to match the maturity of the organization.
- Your HR department should reflect your consistent company values, objectives, and vision in all of its job descriptions, benefits, and policies.
- Keep track of the overall cost and check whether your HR software can support the operations and keep you from making costly mistakes.
Implement training programs to create a strong company environment. - Streamline employee development processes to help HRs focus on and maximize human capital.
- Create HR policies and procedures that promote trust, support clarity, and encourage transparency in the workplace.
By following these HR department startup checklists, and the aforementioned key pointers, you are now prepared to jump in and start developing an HR department from the ground up. Lastly, no matter how daunting the task may seem for your expectations, try making small accomplishments at the start, and allow your HRs to follow through and eventually gain the trust of employees, managers, and leaders.