Step 1. Start with identifying primary processes your department will manage. See a complete guide of Human Resources functions in any organization. Some organizations will not have all functions. This depends on organization size mainly. Pick only those functions you feel relates to your organization or region.Step 2. Group processes you already have into functional areas you selected in Step 1. Variations are possible according to your location and legal setup of your organization. It may happen that you already do many of HR functions. Being a Jack-of-all-trades is good up to a certain point.
Step 3. Evaluate the workload of your new department by comparing amount of people your department will serve. Some HR areas can be managed by other departments. For example, Total Rewards can be managed by Finance department as well.
Step 4. Group processes into functional areas and create your own wheel or chart. The easiest program to do so is Microsoft Powerpoint. It gives you visual structure and is easy to edit. You may want to replace the wheel with boxes 🙂
Step 5. Make estimation of people needed according to functional areas you’ve selected. HR department may start with 2-3 people who take several areas. When the department grows, there are variations how that can be extended. As for now, make it simple. People can do several jobs if the workload is not intense and the specialization allows.
Step 6. Draft department chart. See example of HR department chart. Make sure you include the functional areas from Step 2. Step 7. Create Jobs and Roles. Assign Roles to Jobs by functional areas. You may want to combine Roles. For example, while you are small, you may want to assign several Roles to your Jobs. Try this: HR Manager (Job) consists of the following Roles: Training and Development Specialist (Role, 30% of duties), Compensation Analyst (Role, 30% of duties) and HR Director (Role, 40% of duties).
Step 8. Define expected skills levels for your future team members. Be prepared that skills are hard to find, so list skills from most critical to least important, which will be nice to have at the beginning but easy to acquire if your new hire won’t have these skills yet.
Step 9. Draft Job Descriptions. Indicate Roles where possible. This will help you in future when you will want to review Job details and modify Job Descriptions. It’s always easier to group duties in Job Description according to Role. Job titles as well as Job Descriptions may also change over time. The most common periodicity is annual review of Job Descriptions. For growing companies that period can be shorter.
Step 10. Hire People top-down. Hire most skilled first and let them help you hire the rest of the team. Perfect match by skills is not always required. People whom you hire may have some skill gaps in condition they show intent to fill those skills, knowledge or experience gaps. Skills gaps are areas of growth for your new hires. Your team will be excited to learn while working, so keep some space for their potential growth.
Adjust the process as needed. That will be your continuous function, do not be scared if things don’t perfectly work in the beginning. Persistence and your people skills are essential in creating the department you want.