Checklist: Setting Up an HR Department

What steps need to be taken when setting up an HR department?

Human resources professional Nina Drake, SPHR, Deputy Director, Human Resources, for the City of Las Vegas, provides the following a step-by-step checklist of issues to consider when setting up an HR department. She advises professionals who have the opportunity to create a new department, or those stepping in to head an existing department, to "make a difference to the company and the people who work there."

1. LISTEN, OBSERVE AND LEARN

• What are the company's strategic business plans? Match this with your HR expertise.
• What is the company's culture?
• What does the CEO/owner want you to focus on?
• Who did the HR function before you arrived?

• What HR functions are now in place? Who does what?
• What needs to be done? Are there any fires to put out?

Recruitment and selection

• Job descriptions/qualifications
• Job announcements
• Selection tools
• Background investigations
• Employment offers
• Alternatives to hiring

Compensation

• Methods to consider
• Importance of consistency
• Market influence

Employee relations

• Labor agreements

Performance management. Match employee needs with business needs.

• Disciplinary procedures
• Problem resolution methods
• Employee recognition

Mandated benefits

• Social Security
• Unemployment insurance
• Workers' compensation. Is the workplace safe?

COBRA/HIPPA

Optional group benefit

• Insurance coverages. Adequate?
• Elective insurance products (e.g., life, vision)
• Time off benefits
• Section 125 (pre-tax dollars)
• Retirement plans
• Employee assistance program
• Perks (e.g., child care referral, casual dress days)

Payroll

• Internal v. External

Compliance

• Recordkeeping

HRIS. Is there a system --you must be able to retrieve data.

• Personnel Files. Review.
• Confidential records. Separate medical files?
• I-9s. Keep in separate file.
• Forms. Use forms that make line managers' job easier.

Training and Development

• New employee orientation
• Staff development
• Technical and safety
• Leadership development
• Tuition reimbursement
• Career planning

Employee Communications

• Handbook --do a legality review.
• Newsletter
• Recognition programs
• Announcements
• Electronic communications

Internal communications

• Policies and procedures
• Management development
• Management reporting. Partner with the owner/CEO --inform about what is happening and the contribution you are making.

4. MAKE AN HR STRATEGIC BUSINESS PLAN

• Bottom line reason
• Time line
• Cost/saving

5. SELLING YOUR PLAN

• Prepare
• Discuss bottom line results
• Compare to competition
• Benefits of being proactive
• Better labor relations
• Investigate legal requirements
• Be brief
• Build consensus.