A Playbook to Help You Build Your HR Department in 5 Steps

Today’s most successful businesses thrive on having a strong, cohesive human resources (HR) department. It’s difficult to imagine running your operations successfully without the help of efficient HR team. 

It’s because of this reason that even small and medium-sized businesses (SMBs) aspire and invest some of their budgets to set up an HR department, often known as the people department, to oversee company culture, hiring, employee onboarding, time tracking, employee engagement, payroll, benefits, workers’ compensation, and learning and development initiatives. This helps business owners, like you, get your time back in the day to focus on your side of the business.

HR department is policy and process driven. So, we’ve compiled a list of 5 steps you can take to form a successful HR department from scratch, if you don’t have one.

How to Build Your HR department in 5 Steps?


1. Devise a staffing plan

Staffing needs a strategic, data-driven approach that impacts nearly all facets of HR function. It doesn’t begin and end with recruiting the right people. It evaluates the organizational needs, growth strategy and the full spectrum of skills and resources required to align with the company-wide business goals and ensure business success.

A well-formulated staffing plan helps businesses:

  • Improve the recruitment process.
  • Increased employee retention.
  • Better succession planning.

A Mini-Plan for Building Your Staffing plan.

Let’s get started:

a) Set measurable goals for optimal staffing and employee development levels.

    • Decide HR metrics to track.
    • Implement an HR analytics process.

b) Evaluate your current people management landscape to evaluate:

    • The existing skill set in-house.
    • Performance levels of employees.
    • The top performing employees.
    • The compensation rates vis-à-vis industry average

c) Predict optimal staffing levels through:

    • Trend analysis
    • Industry benchmarks analysis

d) Conduct a gap analysis to:

    • Prepare for letting go off surplus resources
    • Analyze previous shift management data

2. Create an employee handbook

Set a crystal clear code of employees’ conduct, and specific guidelines for safety, healthy and company culture through a thoughtfully crafted employee handbook. It must also cover all the frequently asked questions and their answers for the current as well as the newly hired employees. Get the employee handbook created in both – digital and print – formats. The employee handbook defines a clear set of instructions for the employees – right from the word go.


3. Set safety standards

Invest a lot of time, effort, and resources on setting up a clean, hygienic, and safe work environment, where employees can spend their 8-10 hours per day comfortably. Ensure that all safety guidelines are strictly adhered to so that no employee is at the risk of physical safety. It’s also important to have sexual harassment policy in place and readily available to all the employees. Clearly laid out safety procedures and response plan in case of any emergencies must also be available to all the employees. You can also get these health and safety guidelines included in the employee handbook of your company. 


4. Create a performance and feedback process

Managing employee performance is about an organization’s strategy to establish clear performance expectations for its employees and metrics to measure and monitor the business outcomes. A comprehensive performance management and feedback process can play a critical role in attracting and retaining key employees. Such a strategy enables employees to optimize their full potential and ensures that they’re fully satisfied with their roles and growth in the team.


5. Build an HR administration, benefits, and payroll system

It’s imperative to take a smarter approach here so that your core HR team can focus on strategic initiatives when you scale up or grow. An all-in-one, fully integrated HR, benefits, payroll and workers’ compensation platform, like UZIO, automates your people management workflows and helps you to:

  1. Eliminate all manual tasks and fire up your productivity.
  2. Handle tedious and time-consuming HR administrative tasks efficiently.
  3. Ensure 100% payroll accuracy.
  4. Leverage benefits technology to offer a wide range of benefits to your employees.
  5. Handle all workers’ compensation claims and policies.

Back To You

Having an excellent HR team is essential for optimum workforce management that includes – employee relations, hiring, training, career development, benefits, and company culture. Without a productive HR team, it’s nearly impossible to imagine your business operations running successfully. Decide on the size of the HR team you’d need and get started with building your HR department today using these tips.