HR Significance in start-up organization

Introduction:
Generally start-ups are consists of a founder or founders and small core team members. Majority of core members contributing without specific roles, functions. Normally start-ups policies, procedures, functions & team members roles are flexible. More specifically startup environment demands more innovative human resources to be a part of teams.  

What is startup company/Organisation?

Generally company start with owner or small group of founders with little awareness of employee related issues or Non-HR executive handling employee and employment matters. Some organisation hire outside consultant to for basic needs like payroll process and statutory compliance related matters.

Does HR have roles to play?

Yes, HR has significance role to play, HR Professional has to take care of various activities in the organisation, like HR Consultant to implement best HR practices, statutory compliance advisor to fulfil legal requirements, employee relations counsellor to establish healthy employee-employer harmonious relations, recruiter to hire skilled manpower, trainer to up-skill, re-skills employee to utilise their existing skills, knowledge and abilities to excel in the respective functional area, and compensation administrator to define and design attractive compensation and benefits pay structure etc depends upon size of organisation and nature of business.

Major groundwork activities HR have to perform?

HR plays crucial role in organisation initial stage. As per organisation evolution stage HR has a strategic role to play.

Example: organization is in initial stage then more priority should be given on establishing strategies to prioritise to fulfil legal compliance based on type of business, hiring right skilled manpower, establish & define structure HR policies and procedure in align with company vision and mission.  

HR activities to be prioritised as per nature of business and growth plan.

General overview of HR areas are as follows: 

Statutory compliance – fulfilling applicable legal requirements is must for any business, failing in legal and statutory compliance will lead to huge loss to organisation.  

Staffing Plan – Hiring right amount of talent to smooth running business. 

Compensation and Benefits plan – Design attractive compensation plan to attract and retain talent.

HR policies & procedures – Design and define HR policies and procedure in align with business goals and organisation vision and mission. Preparing employee handbook will serve best communication tool for employer and employees.   

Talent management - Design and define each employee job description, KRA / KPI, Performance indicator, establishing proper feedback process will help to manage employee performance effectively.

Cultural issues – Addressing cultural issued is a basic, it best time to define organisational culture at the beginning of the organisation. Building organisational culture not an event or only HR responsibility, it is a collective effort, but HR can play a role of mediator, facilitator to create an inspiring environment, inspire leaders and employee to establish and enforce.

Conclusion

As organisation grows employee related issues become prominent matter to address employment related issues. Hence having HR onsite will help organisation to handle all issues effectively such as hiring, attendance & leave management, training, discipline, policy enforcement etc.

Prepare for Performance Review

Performance review meeting is an opportunity to exchange feedback between employee and employer. It must be attainment with great preparation from both sides, from Employee point of view performance review meeting is one of the imp parts of performance assessment and career development. Whether it’s a quarterly or annual performance review will be recorded and documented in employee personal file for future reference. So every performance review is important from career point of view.

As an employee or a part of team you have to showcase or present notable performance to the supervisor or Manager or management. To showcase your contribution in review meeting you have to prepare yourself with valid points to be discussed.

How to Prepare?
Know your performance review schedule. 
Gather information on performance review method.
Collect your work samples - presentations, videos etc
Gather your performance records and documents- appreciation letter, email, note or confirmation of great work from your stakeholders.
Seek guidance from mentors.

Self Awareness

Before attending performance review, it’s better to understand self aspirations like roles and responsibilities looking to achieve. 

Review your last year performance review report.

Plan for your next 2 years career.

Prepare action plan for your career plan – what actions you are going to take to achieve those goals like required training, education, mentors etc or what support you expecting from management. Show your road map to management. 

How to face Performance review meeting?

Be calm and relaxed.

Listen actively and give constructive answers.

Be open to learn and optimistic.

Don’t protest on all negative feedbacks, one or two minor defence acceptable.

Accept suggestions and move forward.

Sources: Prepare for your review from Dr. Todd Dewett. 

Emotional Intelligence-a crucial skill

Quality of being sensitive & understand self and others emotions and ability to manage self emotions and impulse.

In short - ability to understand our self and others emotions and manage its impulses.

Daniel Goleman international psychologist authored emotional Intelligence in 1995 since then Emotional Intelligence or Emotional Quotient becomes more popular word. His argument is workplace success is not only dependent on Intelligent Quotient and emotional intelligence is more of leadership ability. 

1. Self-awareness – the ability to know one's emotions, strengths, weaknesses, drives values and goals and recognizes their impact on others while using gut feelings to guide decisions.
2. Self-regulation – involves controlling or redirecting one's disruptive emotions and impulses and adapting to changing circumstances.
3. Social skill – managing relationships to move people in the desired direction.
4. Empathy – considering other people's feelings especially when making decisions.
5. Motivation – being driven to achieve for the sake of achievement.

Emotional intelligence at workplace:

The emotional intelligence enables people to come together with diversified backgrounds and perspective to work productively together. In organisational setting the emotional intelligence can turn difference into an organisations asset rather than a liability.

HR professionals play very important role in developing emotional intelligence in employee of the organisation. HR can implement behaviour needed to support global mindset among all members or diversified workplace.

1. Empathy
2. Cooperation
3. Willing to learn
4. Accept differences 

How to improve emotional intelligence; 

1. Understanding own emotions – learn to understand self and others emotions at different settings. If not able to understand seek others help.
2. Accept emotions - Feelings might be good or bad accept it.
3. Find out reasons – finding why emotions are like this or why I am or he/she is feeling? Finding origin of emotion will help to find solutions.
4. Handling emotions – find your own way to handle your emotions. Seek help from your trusted partners, meditating and many more find your own methodology.
5. Handling emotions of others – if able to handle your own emotions there are high chance that you can understand emotions and offer support. 

The emotional intelligence is a crucial skill and also takes genuine efforts to learn it. Being emotional intelligent means knowing and understanding self, effective decision making will help us to deal with interpersonal relationship.  

Sources: https://en.wikipedia.org/wiki/Emotional_intelligence

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The Employee Handbook

What is Employee handbook?

Employee handbook is also known as Policy manual, staff handbook, employee manual, it is given to employee by employer which contains company information, vision, mission, objectives, culture, policies and procedures. It is an employee reference manual. 

Why handbook required?

Handbook is not mandatory requirement for employers but having this have many advantages. It is best employee communication and risk management tool. It addresses many legal concerns, employment practices, policies and procedures. Now current technology has made it easy to update and distribute and convey message to employees.

How it should be?

Communicate clear expected behaviours, and define what great employee means.

Communicate company Mission, vision, Values and culture.  

Updated regularly - review with existing central and state labour, social security, employment laws.

Make sure it is an error free document.  

Ensure it servers as employee guide and reference book.

How to make it effective?

Train supervisors and managers to utilise employee handbook

Display in visual posters at workplace - Use posters, charts

Organise polls and quizzes in regular interval on awareness on company policies and procedures.

Send question of the week or month – send email link to participate.

Remind in staff meeting  

These are some most important points to be considered. Every organisation irrespective of its size and type of business must have employee handbook as risk management toll. Having employee handbook will not serve the purpose, it must be communicated its contents on regular intervals.

Sources: https://en.wikipedia.org/wiki/Employee_handbook

The Stay Interview

Engage employee before they become disconnected. One of the powerful tool to improve employee engagement, retain and reduce turnover. It gives an opportunity to have discussion with individual employees and helps employer to build trust, understand employee insights about organisation. More often management is reluctant to conduct individual meeting with employee thinking that employee will ask for raises, but it will help employer as preventive tool in employee turnover. 

It can be conducted twice a year or quarterly based on business and operations needs.

Who should conduct?

Ideally employees first line supervisor/immediate supervisor.

What are the advantages of stay interview?

Understand employee concerns and helps to prevents lose of top performing talent.

Based on finding employer can plan employee engagement activities.

Helps in reduce turnover.

Reduce recruitment efforts.

Stay interview may not bring perfect outcome, but it helps to understand why employee wants to stay with company and how to make it more interesting.

HR professionals play crucial role to conduct effective stay interview. He can create awareness and importance of stay interview as an effective employee retention strategy. Also HR can train first line managers and supervisors on effective implementation.

Source: https://www.thebalancecareers.com/what-is-a-stay-interview-1917998 

HR Competencies

Human Resources function is most important function in an organisation. HR is involved in every part of the organisation. In general human resource professionals major activities are allied with talent attract, develop, retain high performing staff and employee separation process and comply with various employment laws.

HR professionals must possess behavioural, technical, functional skills and knowledge to perform HR activities effectively.

To succeed in the HR role, HR professionals having behavioural skills is not enough but also he must have the ability apply practically to drive the success of the organisations.

Key Skills HR Professional must have;

Knowledge of Human Resources

HR professionals must possess expertise in core human resource functions. Expertise in People, organisation and workplace challenges. 

People:

HR has to assess current workforce behaviour, motivation factors, values, and organisation workforce requirements. Identify right talent, engage them and enhance their skills and abilities to deliver results.

Organisation:

HR professional must have thorough understanding of organisation structure and design the appropriate HR service model to fit the organisation. Align all HR functions i.e. hiring, talent management, compensation and benefits, learning & development, workforce management, Labour law compliance & statutory obligations. Integrate HR operations with organisation to ensure consistent delivery of services.

Workplace:

HR must be able to address day to day workplace issues. The present workplace witness diversified global workforce. The HR has to balance local needs with global trends.

Leadership:

HR must have good leadership qualities, understanding people and people’s challenges. Provide innovative and practical solutions to their challenges.

Ethical practice

Ability to understand core values, integrity and accountability in business practices while dealing with internal and external stakeholders.

Business Acumen

Ability to understand organisation, business model and business needs. If HR understands business he can be able to deliver effective HR services internal and external stakeholders.

Relationship management

Ability to build trusted relationship, managing teams, managing conflicts effectively, creates and maintains professional contacts and network.

Consultation

Ability to work with stakeholders, evaluating and identify challenges, advise on emerging issues and providing effective suggestions/solutions. Evaluating challenges, design, and implement solutions.

Critical thinking

Ability to provide logical thinking, identify critical business challenges and provide solutions

Global & cultural effectiveness

Ability to work with multi generations, culturally diversified workforce, having global mindset,

Communication

Good communication skill is essential for any profession, but for HR communication is essential skill. In day to day operations HR has to exchange information, giving constructive feedback and solutions to his internal and external stakeholders. Communication has many folds, being able to communicate in written, oral, presentation skills in he must be able to listen and understand what others concerns are very important skill.

Working with various industry background, I acknowledge above competencies are most important which HR professionals must possess to work effectively. Everyone may not be expert in each of the above skills, it can be learned, it takes time and I am learning.

Source: SHRM learning system

HR Operations

Broadly we can describe HR operations as all the activities and services from recruitment to exit provided by an HR professionals, HR team, and department to meet business goals.

In simple deliver daily HR services to management, employee, and stakeholders. Identify and resolve operational issues and support business process. All HR team members are part of HR operations.

Supporting cross function team in day to day function, and ensure employees and other stakeholders are provided best in class customer service.

Major HR operations activities are:  

Recruitment

Appointment

On-boarding

Employee engagement

Employee relationship management

Training

HRIS

Compensation and benefits

Statutory compliance

HR helpdesk

Employee Services etc

Skills required being effective HR service provider:

Excellent communication skills (verbal and written)

Strong understanding of compliance matters and payroll

Solid interpersonal skills;

Ability to establish priorities and work effectively in a team-based environment

General Designation for HR operations professionals are Executive, Sr. Executive, Manager, Sr. HR Operations manager

Some designation targeting specific areas of HR operations are HR operations – Payroll, Operations – Employee life cycle, HR Operations –Service delivery, HR operations – Global mobility. 

HR services diverge from organisation to organisations, nature of business and strength. HR function plays a key role in overall business process transformations.

UAE labour Laws for HR functions

In the UAE Labour issues are governed by Federal Law No. 8 of 1980 Regulating Labour Relations as amended by Federal Laws No. 24 of 1981, No. 15 of 1985 and No. 12 of 1986 (the "Law"). According to Article 3 of the Law, the law applies to all employees and workers in the UAE including UAE nationals and expatriates. 

The Law covers every aspect related to the employee-employer relationship including employment contract, wages, working hours, leave, vacations and public holiday, restrictions on the employment of women and juvenile, safety and protection of employees, penalties and employment related accidents, injuries and death, termination of employment and end of service gratuity payments.

Key Provisions are as follows;

Working hours
Official leaves and vacations
Wage protection
End of service benefits
Safety at workplace 

Working hours.

As per the Article 65 of the UAE labour law normal working hours for private sector is 8 hours per day or 48 hours a week. The working hours may be increased to 9 hours a day for bar, hotels and cafeteria after approval from Ministry of Human Resource and Emiratisation.

6 hours working hours a day during holy month of Ramadan.

Overtime: working beyond normal working hrs will be considered as Overtime. Overtime is entitled to pay equal to normal working hrs plus 25% of normal pay and 50% extra pay if working between 9 pm to 4 am.

Midday working time: working is prohibited between 12.30 to 3.00 pm in open area and shelter to be provided for rest during that time.

Work schedule must be displayed in language understood by the labours and Arabic.

Official Leave and vacations

Week off – Friday is the official week end for all workers, except for daily wages workers. If employee required to work on week end must be paid normal wages plus 50% additional pay.

Paid holidays

Private employees are entitled for paid leave on all declared public holidays

Annual Leave:

2 days per month, after 6 month service. 30 day after completion of one year of service.

Sick leave:

Employee is not eligible for paid sick leave during probation period.

Employees are entitled for 90 days per year subject to conditions as per law. Employee shall get First 15 day with full payment, next 30 days half pay and sick leave without pay for next 45 days.

Special Leave:

Employee may grant not more than 30 days special leave without pay for the performance of Haj once throughout his service.  

Maternity Leave:

Women employees are entitle for 45 days paid leave, to get this benefits woman employee must have completed one year service. Those not completed one year service will get half pay. Women employee can extend 10 days extra leaves without payment.

Post delivery first 18 months women can get two rest break for child feeding but not exceeding 30 minutes each. 

Minimum Wages:

No minimum wage stipulated in the UAE labour law; however it broadly mentioned that wages/salary must cover the needs of employees.

End of service benefits

Gratuity payment:

The worker having spent one year or more in continuous service shall be entitled to an end of service gratuity upon the termination of his service. The days of absence from work without pay shall not be included in the calculation of the period of service,

Employee who completed one year or more in continuous service shall be entitled to end of service gratuity upon the termination of employment.

Limited Contract:

Employee is eligible for 21 days wage for first 5 years and 30 days wage for every additional year. Wage means basic wage not other allowance to be considered. Intotal gratuity payment shall not exceed two years total salary figure.

Unlimited Contract:

Between 1 - 3 years of service, Employee is entitled to one third of the 21-days gratuity pay.

Between 3 - 5 years of service, Employee is entitled to two thirds of the 21-days gratuity pay.

5 or more years of service, Employee is entitled to full 21-days gratuity pay.

 Safety at workplace

Every employer must provide adequate means of protection for the employee from the hazards of injuries and vocational diseases that may occur during work as well as the hazards of fire and other hazards arising from use of machines and other tools and the employee must use protective equipment and clothing provided to him for such purpose and he must abide by all instructions of the employer aiming at his protection from dangers and must not act in a way that may obstruct the application of said instruction.

Display of conspicuous point in the place of business detailed instructions concerning methods to prevent fire and protect employees from dangers while they perform their duties.

First aid box to be presented at workplace, each first-aid box must contain sufficient medicines for 100 employees.

Employer must provide proper cleanliness and ventilation in each place of business and must provide such places with adequate illumination, potable water and toilets.

Employee medical check once in six month for employees who expose to hazardous work environments 

These are general understanding and information on labour laws and rules in best of my knowledge, which I learned in my working tenure with private manufacturing firm. This piece information is written for general information to my professional network; it is not a legal advice. I am not liable for any errors or omissions. 

Source: uaelaborlaw.com

Compliance under The Karnataka Shops and Commercial Establishments Act, 1961 and Rules, 1963

This is an act to provide for the regulation of conditions of work and employment in shops and commercial establishments in the state of Karnataka.

To enforce this act, the Labour Commissioner will be the Chief Inspector. It is notified that Inspector/Senior Inspector will be Inspector and all department-level authorities will be additional Inspector.

Applicability

This act covers shops and commercial establishments.

Shops means any premises where any trade or business is carried on or where services are rendered to customers, and includes offices, storerooms, godowns, or warehouses, whether in the same premises or otherwise

A Commercial Establishment shall mean a commercial or trading or banking or insurance establishment, an establishment or administrative service in which persons employed are mainly engaged in office work, a hotel, restaurant, boarding or eating house, a café or any other refreshment house, a theatre or any other place of public amusement or entertainment.

All types of shops/establishments including a private limited company, limited liability partnership, partnership firm or proprietary concern have to register under this Act.

The act is applicable even if you have one employee or none.

Compliance:

Registration of establishment: 

Registration to be done within 30 days from the date of commencement of business. Registrations are valid for a period of 5 years and can be renewed.

Instructions: http://164.100.133.176/ekarmika/Documents/instructiontoshopowner.pdf

Display registration certificate at visible place. 

Intimate the changes: inform authorities if any change in address, ownership, number of employee etc

After closing the business of his establishment, should surrender the registration certificate to the registration authority.

Hours of work:

Working period not exceeds nine hours in a day including overtime and 48 hrs in a week.  Maximum 50 hours overtime per quarter. No young person allowed being employed more than 5 hours in a day. One weekly holiday must be granted.

Prohibition of employment of children: no children allowed work in any establishment.

Prohibition of employment of women and young person’s during night: Young persons and woman shall not be employed during night, between 8 pm to 6 am.

Certain establishments are exempted like IT & IT enabled service shall employment of women during night subject to the condition that the establishment provides facilities of transportation and security to such women employees and subject 15 conditions. For the employer must get permission by submitting Form R. 

Annual Leave: One day for every twenty days work, one day for every fifteen days of work performed by him, in case of a young person. Leave encashment: upon termination, resignation, retirement or separation for any reason.

Sick / casual leave: not more than twelve days leave per year.

Record management:

Form A – Establishment registration/Renewal/To report change of information.

Form P - Notice of Holiday

Form Q - Appointment Order

Form C – Registration certificate to be exhibited

Form F - Register of Leave with Wages

Form H - Leave with Wages Book

Form T - Combined Muster Roll cum Register of Wages

Form R - Permission to allow women to work after 8 PM

Form U - Combined Annual Return before 31^st Jan

Visit book 

More detail visit: http://164.100.133.176/ekarmika/Static/Home.aspx