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Starting An HR Department From The Ground Up

Consider these areas, issues when building your new department

The process an organization takes when creating a human resource department differs based on whether the organization is brand new or if the organization has been in operation for some time and is just now adding an HR department. In addition, the issues and concerns of starting the HR department are affected by the current size and expected growth of the organization, the amount of support and infrastructure already in place, the industry, and the organizational vision and culture. This article provides a general overview of areas and issues an employer should consider when building an HR department from the ground up, including the following:

  • HR staffing plan.
  • HR budget.
  • Tax obligations.
  • Payroll system/administration.
  • Companywide staffing plan.
  • Job descriptions.
  • Pay structure.
  • Benefits plans.
  • Employee handbook.
  • Safety procedures.
  • Employment posters.
  • Hiring procedures.
  • Personnel files.
  • Performance evaluation process.

For an existing organization, the steps to implementing an HR department may overlap with creating the function from scratch, depending on compliance concerns, existing HR policies and what is driving the need to establish a formal HR department. The first step in forming an HR department in an existing organization is an assessment of the current state of the HR-related activities. This assessment, or HR audit, helps determine an appropriate prioritization and action plan. 

Please select this link to read the complete article from SHRM.

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