Ten Steps for Implementing your HR Function

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 As an entrepreneur it is essential to surround yourself with articulate, enthusiastic staff who have the expertise and skills that you need to grow your business. 


Staff must be treated equally, fairly and with respect and in return you will build a team who is loyal and responsive to your needs.   Good Human Resource practices and principles will ensure that staff are satisfied and motivated and that retention levels are high. See the Ten Top Tips for implementing your Human Resources Function: 

 Recruitment:  When and how should you advertise and employ staff ?

  • Balance needs against expense of employing staff
  • Could you recruit temporary staff to meet your needs ?
  • How far ahead should you be planning and thinking ?
  • Research the market to ensure that the pay that you are offering will ensure a high standard of applications
  • Having recruited the best person for the job you need to ensure a thorough Induction process as research shows that well-inducted employees stay with a company longer

Produce a Company Staff Handbook

  •  It is easier to be fair and consistent if everything is easily available and clearly sated.  It will also prevent you having to answer the same question too many times


Create and define Employment Policies

  • Absence, Maternity, Disciplinary, Grievance 
  • This is linked to your legal obligations.  In some instances you may want to offer more than the legal minimum.  Whatever you decide to do you must be consistent to avoid allegations of discrimination or unfair treatment, this is best achieved by having formal policies in place

Review salaries

  • Most people will expect an increase in salary, usually on an annual basis.  If staff feel that they are worth more than you are paying them and they do not think an increase is imminent or likely, they will leave !

Design a benefits package

  • there is more to remuneration than just salary, other rewards include Pension, Performance Related Pay, Health Care, Nursery Vouchers, Extra annual leave, flexible working, staff discount, staff expenses, travel expenses etc. 
  • What can you afford
  • How much do you think it will cost
  • Performance related Bonuses can work well in areas such as Sales or client orientated businesses, such as PR, Marketing or Recruitment .  PRP(Performance Related Pay) can be a very good motivator and can enhance basic rates of pay by linking pay to business profit.

Decide on an Appraisal and Supervision structure

  • Appraisals can be a useful tool for staff management and can be linked to Performance Related Pay or annual pay review
  • Staff require consistent feedback and supervision 
  • They need to feel valued and appreciated
  • If they are not performing you will need to manage the situation to get the best results from the individuals involved or to take the necessary action

 Develop a Training and Development Strategy which aligns with your business needs and aims

  • Staff need to learn, develop and grow
  • As your business grows staff will be required to acquire different or extra skills
  • Companies that provide training and development have better retention rates for staff

Review legal requirements for the size of the business (turnover and number of employees.

  • When a Company reaches a certain size there is a requirement to provide a Pension;   this is unlikely to affect you at the beginning but may need to be considered later

Consider writing a Human Resources Strategy.

An HR Strategy makes it clear to staff what your expectations and intentions regarding  your workforce.   If growth or mergers are planned it will help them to know that the future may hold in terms of career progression or future opportunities.  It will also make you think about your future HR needs and give you objectives to work towards with regards to staffing

Ensure good communication with staff 

  • communication lines must always be open and staff should feel valued and appreciated at all times –
  • a company’s most valuable asset is its people  

Expert Advice by Diane Rosewarne of www.rosewatershr.co.uk



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