Human Resources (HR) is an underrated asset for a business. It is like one of those invaluable rovers on the footy field who hound the opposition and also link the attacking play. They’re often far away from the spotlight but are a pivotal cog in the functioning of the team. Similarly, the HR department also works in the background to grease the corporate wheels. HR practices have evolved beyond mere compliance and seek to bring out the very best in every employee. If you do not have a proper HR set-up in your business or are doing the bare minimum at the moment, consider implementing the following steps to help your business perform better:
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Gauge the current state of affairs.
Start by discerning how basic the current policies and procedures are. The founders or current management would have set up some sort of framework to handle recruitment, performance appraisal, and compensation. Create a checklist and determine which of the following are being executed and to what degree or level:
- Recruitment and staffing to fill vacancies
- Onboarding and joining of new employees
- Performance management of the workforce
- Compensation and benefits mapping
- Compliance and legal adherence
- Workforce training and development
- Employee engagement and culture development
After determining the current state, look into the unique requirements of the business, which depend on its scale of operations and type. For instance, a manufacturing unit would focus more on safety training, whereas an IT company would look more into upskilling the workforce.
Recruit
Depending on the size of the business, you may need to hire HR professionals to assist you in setting up the department and handling the day-to-day affairs. Look for qualified candidates with degrees like Master of Human Resource Management online so that you get professionals who have tapped into the latest trends and insights in workplace law, talent development, and employee retention practices.
Establish a record-keeping process
Documentation is very significant in HR. Look into setting up template documents for the entirety of an employee’s life cycle at your business. Documents should be legally compliant as well as easy to go through for the relevant stakeholders. If the current system is paper-based, initiate a digital transition. This would enhance the security and access, and also boost speed and efficiency. Develop document templates for important events like recruitment, payroll, termination, performance appraisal, disciplinary action, and completion of training. Create folders for every employee and liaise with the IT team for smooth implementation and functioning.
Conduct a technology review
After initiating the digital transition, look out for any existing digital systems. It is very likely that at least payroll and attendance might have some sort of legacy software, at the very least. Suggest an overhaul to the top management and explicitly state its financial and performance benefits. This is your opportunity to push for intuitive and polished HR systems. Some of the core systems that are usually used in most organisations include digital systems for:
- Payroll
- Employee management (attendance and leave tracking)
- Recruitment (Applicant screening and hiring)
- Skill development and training
Keep budget constraints in mind and be aware of the current practices. Buy-in from the employees is crucial for garnering the benefits.
Create an employee handbook
While it may not seem important, creating an employee handbook is vital for establishing the base standards and setting very clear expectations. This would include information about the more macro elements like the vision, mission, and culture of the company, but would also include the micro elements like workplace policies, employee rights and responsibilities, and code of conduct.
Develop a training pathway
Some employees crave personal growth. A good workplace would have policies and avenues that would encourage the learning and development of its workforce. Based on your employees’ needs and the organisation’s own skill gaps, create a library of useful courses and training material. It would also be wise to add any mandatory compliance training as per legal regulations at this stage.
Check for compliance
Conduct an HR audit. Double-check that all the contracts meet the legal requirements. Immediately implement single-touch payroll if your company has more than four employees. Have a good look at the Fair Work policies and implement the same. Ensure secure storage of employee data. Scrutinise the payroll procedures. Make sure that the business is on the right side of the law.
Building a solid HR department will have a positive impact on employee performance and retention. A good work culture can be a great attraction for top talent. Start by assessing the current state of affairs and act as per the needs and requirements of the business. Recruit qualified HR professionals, if needed. Set up a record-keeping flow and look for ways to improve the tech. Develop a handy training programme for ambitious employees and always check for compliance. It may not be a walk in the park, but setting up an HR department becomes easier when you follow this checklist.
