Developing Human Resources Programs: Where to Start?

The minute a company hires one employee it is in need of some form of human resources support. Why? Because that employee needs rules to follow, and your organization is now subject to certain state and federal laws that govern your relationship with that one employee.

And while you might not offer your one employee any benefits, you still want a basic understanding of your obligations, the forms needed to record changes in status, and policies to communicate appropriate behavior. Welcome to the wonderful world of human resources!

First Steps in Developing Human Resources Policies

When you hire someone to work for you, whether as an employee or a contractor, you need to be sure you understand all the laws that impact your organization based on the state in which you live. There are many federal and state labor laws, several of which overlap, that can affect your company based on how many employees you hire.

One of the easiest ways to determine the rules and regulations that apply to your firm is to break your human resource needs into their basic components.

Staffing

The term staffing is often interchangeable with the words recruiting and hiring. However, staffing is a broader term and more accurately defines the entire process.

When an organization conducts a search and hires new employees, there are several laws that come into play. These include laws which govern equal employment opportunity, discrimination, diversity, affirmative action, wage and hour, reference and background checks, new hire reporting requirements, immigration and employment status (exempt versus non-exempt). In addition, programs for new hire orientation and relocation need to be considered.

Employee Relations

When you deal with employee behavior and performance, you are dealing with the employee relations portion of human resources. Disciplinary action, performance appraisals, grievance procedures, problem resolution, prohibited behavior, zero-tolerance policies (harassment, substance abuse and workplace violence), business conduct, ethics, confidentiality, privacy rights, conflict of interest, and personal appearance are all part of employee relations.

That means laws related to arbitration and confidentiality agreements, harassment training, trade secrets as well as the American's with Disabilities Act (ADA) and the Health Insurance Portability and Accountability Act (HIPAA) may be affected.

Benefits

Today, employee benefits can range from standard programs such as vacation and health insurance to sabbaticals and long-term care insurance. When determining what benefits to offer your employees, remember it is better to start small and work your way up. One of the worst things you can do is to give something and then take it away.

The standard benefits package for small and start-up operations might include one week of vacation each year, six paid holidays, and a health care plan. These few things are generally simple to administer. However, as your organization grows and you add other benefits such as sick leave, 401K or profit sharing and expanded health care or life insurance, it may be more burdensome to administer. Check out our article "Outsourcing Employee Benefits: The Pros and Cons of In-House Administration" for additional information.

Compensation

One of the biggest mistakes that smaller employers make is not having a full understanding of compensation practices. Too often they wind up paying people whatever they want without regard to internal equity and market prices. Developing an internal compensation program that provides pay grades based on positions and not individuals will go a long way in eliminating discriminatory pay practices.

Health and Safety

Before you ever put someone to work, ensure their safety by teaching them proper health and safety procedures. To do this, you will want to have a fully developed safety program that includes an Illness and Injury Prevention Program (IIPP), workers' compensation guidelines, safety training, a smoking policy and a leave of absence policy. Check out our article, "Basic New Hire Training: Determining Your Needs," for more information.

Records, Policies and Procedures

Finally, there are a ton of odds and ends that employees who are new to the field of human resources need to keep in mind as they form their new department. Things such as creating an employee handbook, time off requirements, and ensuring required posters are properly displayed are vital to meeting required rules and regulations.

If you're in the process of forming a new human resources department and you're not sure exactly where to start, you're in the right place. The OfficeArrow HR & Benefits section offers a broad range of information. For more in-depth discussions and an extensive selection of resources, we highly recommend HR & Benefits Essentials, the award-winning online library composed and maintained by employment lawyers, accountants and HR experts. Your membership with OfficeArrow gives you a $500 discount! Learn more here.