HR For Start Ups: Where To Start And Best Practices
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The seminar will help the audience understand HR from a practitioner’s point of view as well as an entrepreneur or management team that is relevant to start-ups. It will help entrepreneurs who ‘don’t have time for HR’ as well as HR practitioners who have the task of promoting it to come together. It will introduce: - How to approach HR - Best practices to consider - Solutions based approach - Strategic vs Operational Issues - Basics to Systems, Policies, Procedures and practices - Documentation and Recording - Outsourcing HR This presentation was used at HR Summit and Expo 2013 www.hrsummitexpo.com
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HR For Start Ups: Where To Start And Best Practices
- 1. HR For Start Ups: Where To Start And Best Practice 7 October 2013 14.45 – 15.30
- 2. LEARNING OUTCOMES • How to approach HR • Best practices to consider • Solutions based approach Strategic vs. Operational Issues • Basics to Systems, Policies, Procedures and practices • Documentation and Recording • Outsourcing HR
- 3. Did you know that… SMEs count for 95% of the total enterprise population in Dubai SMEs employ around 42% of Dubai’s workforce SMEs contribute 40% of Dubai’s value add 230,000 registered businesses in UAE Contribute 60% of the national GDP in 2011
- 4. Top Small Business in Dubai Biz Group- sound & people-centred workplace practices, especially in hiring, inspiring, welcoming, & thanking staff. Emitac Healthcare Solutions Leminar Dabo & Co Eton Institute Paramount Computer Systems
- 5. Small Business View on HR HR is to fulfill UAE Labour Law requirements Black Hole of Time and Money Our finance or Admin team can manage it Something we have to do I do it – Entrepreneur/Manager We are a small business- We don’t need it We don’t need the soft fluffy stuff People are your biggest Cost £29 billion in sickness costs day-to-day Vs. focus on the future growth
- 6. Lifecycles Employee Organisation Introduction Recruitment & Selection Acceptance & Understanding Onboarding & Orientation Working and Learning Guiding, Managing & Coaching Reward Reward Performing & Improving Performance & Feedback Separation Separation
- 8. Human Resources for SME
- 9. Employee Engagement • Engaged employees are more productive • Helps retention and reduce absences • Gets them excited about work Managing & Growing Talent • Consider young recruits • Older employees can be coaches • Consider Options- Job Enlargement, Internal Hire • Effective Training and Development Managing Performance • Streamline Process • Prompts Managers to have progress conversations periodically
- 10. Harnessing Technology • Social Collaboration Tools • Encourages innovation • Work on projects and initiatives • Management of Employee Information • Competitive Advantage Keeping up with Legislation • Changes to Regulations • Inspections and Labour Visits • Fees and Process changes • Introduction of new Laws
- 11. HR System
- 12. Information Management • One Place for Employee Information • Eliminates uncontrolled spreadsheet • Data Integrity, confidentiality & control Reporting • Creation of standardised reports, • reliable and increased accuracy of data • Central Information to create trends Employee Benefits • Increase Employee Retention • Facilitates better communication, employee tools • Lower Turnover and Reduce Costs • Administration Costs
- 13. Tips on Management/Owner Buy in & approvals • • • • • • • • • • Facilitates the vision of the company Return on Investment/Bottom Line Information at your fingertips Business Continuity Retention of employees Development of HR profile Quality and ISO benefit Absence Management Streamline and automate HR processes Re-energise communication
- 14. What to consider in a system Needs Assessment and critical for automation Employee self-service options Set permissions and authority levels Consider reporting requirements No. of employees supported – upgrade options Import of current data capability Preferable to work with a provider to have local experience Demo it on your system / involve IT In-house IT capability- system & resource requirements Web enabled or server based Training offering Update and maintenance options
- 16. Documentation is Written and retained record of employment events and is made up of • Government and legally mandated elements • Required by company policy and practice • Best Human Resources practices, • Formal & informal recordkeeping about employment events.
- 17. • Keep a special file for each employee • Prepare a leave card for annual, sick and other leaves • 15 or more employees should have a remuneration register, employment injury register and basic work rules • Additional- Passport Copy with visa page for employee and dependants • Insurance Card Copy- Abu Dhabi • Emirates ID Copy • Recruitment Records • Employment contract pack • Next of Kin/ Emergency Details form • Beneficiary Form – regularly updated • Current Personal Details • Disciplinary & Grievance Notes • Copy of Letters issued • Benefit Information • Separation Documents • Salary Information Legislative Requirements Best Practice
- 18. Contract • Primary and binding Document • Mutually Agreed and modified • Rights and Obligations by Law i.e. working conditions • States compensation, Entitlements and benefits Policy – ‘What to’ Procedure – ‘How to’ • Formal statement of a principle or rule Codified Decisions • Addresses what’s important to organization's mission or operations. • Articulates expectations • Legal Compliance • Complements a policy • Tells the organization how to carry out a policy • Facilitates implementation of a policy. Employee Handbookwhere to? • A comprehensive source for understanding the practices of the organization • Summary of applicable policies and procedures • General information
- 19. What to Consider - Policy • • • • To be written in clear, concise, simple language. Should be easily accessible by all Applicable to all employees Language used should represent company culture • Should be current and updated as needed but not too often • Approvals and applicability should be clear What to Consider - Procedure • • • • • • • Concise and minimum verbiage Double check for accuracy Don’t Include Names use positions Clarify acronyms used in the procedure Should be step by step instruction To be understandable by new employee Should be audited regularly
- 20. What to Consider – Employee file • • • • • • • • • • Employee files are confidential Centrally stored and easy access secured and safe Limited access Employee should be able to access their file Sharing of employee information Have regular maintenance and updates Archiving all files – no minimum period Physical Copy Vs. e-filing Labour Inspections
- 21. Outsourcing HR
- 22. HR Outsourcing – Industry Drivers According to Hewitt Associations, most common reasons Reduce risk – 22% Reduce overall headcount – 30% 52% is to reduce overhead. Access to expertise – 41% Concentrate on core competencies – 33%
- 23. PROS • Helps in Time & Resource Management • Focus on Operational Delivery • Access to relevant best practice • Access to specialists and experts in the field • Positive customer experience • Focus on core competencies & better productivity • Reduction in overhead costs & headcount • In house HR to focus on strategy CONS • • • • • • • • Misplaced loyalty Time bound Limited to scope of contract Potential Hidden Costs Change in personnel Dispute resolution challenges Cultural Integration Availability of HR staff
- 24. What to Consider • Gauge Need of the businessNeeds assessment • Evaluate multiple firms to compare services offered • Pay for what you need and not whats provided • Understand and agree on schedule of services • Meet with your outsource team • Communication to employees • Duration of the contract • Policies, procedures and handbooks
- 26. Company Culture Create your Values and align them with your vision Innovation and Creativity Align People with business strategy through HR Keep it simple and fluid Keep a focus on future Balance of family feel and growth Think ahead and don’t hold on to what was done Business Strategy aligned with People Strategy
- 27. Best Practice- Recruitment & Selection Strategic • Recruitment Strategy • Job Analysis & Design • Selection Strategy • Tools Used • Timelines & Measurement • Compensation & Benefits • Budget Operational • Delivery against Strategy • Job Description • Review of Candidates • Interview Process • Candidate Feedback • Selection & Negotiation • Reporting
- 28. Best Practice- Onboarding & Orientation Strategic • Hiring Process Creation • Timeline – Histograms • Standardized Documents • Onboarding Process Operational • Working with the Hiring Process • Keeping a track • Managing the onboarding process • Candidate to Employee transition • Having a robust orientation program – Welcome Initiatives
- 29. Best Practice- Guiding, Managing & Coaching Strategic • • • • • Formal Vs. Informal Manager Toolkit HR Management System HR System Employee Handbook Operational • On the job support • Address Queries and Issues • Customer Approach
- 30. Best Practice- Reward Strategic • Compensation & benefits Strategy • Value Add Proposition • Offer Stock Options • Bonus or Commission Approach • Review Approach Operational • Manage the Package • Administration of Benefits • Maintenance and alignment • Consistency • Managing Exceptions
- 31. Best Practice- Performance & Feedback Strategic • • • • To have or not Have How to do it? When to do it? Invest in a system? Operational • • • • • • Delivery against Strategy Alignment Measure Review of Candidates Interview Process Candidate Feedback Selection & Negotiation
- 32. Best Practice- Separation Strategic • Alignment with Labour Law • Legal Disputes Resolution • Redundancies • Repatriation Benefit Structure • Trend Analysis- Exit Interviews Operational • Standardised Documentation • Employee Greivance Management • Handover Management • Separation from Company system, property, etc.