Dear Mahajan,
Thank you very much for answering my questions. As I thought, you are the owner and Director of your firm. You also seem to have realized your mistakes.
I think the main mistake lies in the change of policy on holidays. "We started with offering 24 to 36 holidays a year 6 years back but now have come down to about 8 National Holidays + 5 Holidays a year extra in case employees have a grave emergency, which is again another loophole."
Please go to http://www.acas.org.uk/media/pdf/d/m/Employing-people-a-handbook-for-small-firms-accessible-version.pdf and study the document carefully. It does not matter if the firm is in India or the UK, there are some general principles that a good company should follow. Please tell us why you reduced the number of days of holidays, as you seem to have more than halved the number.
Put yourself in their position and tell us what you would do in their position.
As experts have opined, there is no need to engage a full-time HR, and you can engage consultants to advise you.
From United Kingdom
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1639Thank you very much for answering my questions. As I thought, you are the owner and Director of your firm. You also seem to have realized your mistakes.
I think the main mistake lies in the change of policy on holidays. "We started with offering 24 to 36 holidays a year 6 years back but now have come down to about 8 National Holidays + 5 Holidays a year extra in case employees have a grave emergency, which is again another loophole."
Please go to http://www.acas.org.uk/media/pdf/d/m/Employing-people-a-handbook-for-small-firms-accessible-version.pdf and study the document carefully. It does not matter if the firm is in India or the UK, there are some general principles that a good company should follow. Please tell us why you reduced the number of days of holidays, as you seem to have more than halved the number.
Put yourself in their position and tell us what you would do in their position.
As experts have opined, there is no need to engage a full-time HR, and you can engage consultants to advise you.
From United Kingdom
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I have experience running small companies and businesses, so I understand the problem you are facing.
First, I don't think the absence of HR is the real issue. You can easily manage without HR in a company of this size. However, if you do have an admin cum HR executive in the company, it makes management easier. Hiring a HR with 10 years of experience is a bad idea. You won't likely find one, and even if you do, they may not be able to contribute much to a small company. Instead, look for someone with a couple of years of experience so that you don't end up having to teach them how a company or business operates.
You probably need to hire an HR consultant who can work with you for a few weeks or a month to prepare policies and processes. Then, you and your admin assistants should implement them.
Please remember that policies and processes are flexible and can be changed, but any changes should have a valid reason.
Regarding holidays: I have other service clients who provide 4 fixed holidays (national holidays) and 4 optional holidays that each employee can select at the beginning of the year. However, it is essential and required by law to provide leave. Check the state rules. Generally, after one year of service, employees are entitled to 15 or 21 days of leave that they can use as needed. No leave is allowed in the first year. Employees can take leave without pay with the approval of management (you).
For more details, you should consult with a professional as it requires much more detail and focus than what members of this forum can provide.
From India, Mumbai
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First, I don't think the absence of HR is the real issue. You can easily manage without HR in a company of this size. However, if you do have an admin cum HR executive in the company, it makes management easier. Hiring a HR with 10 years of experience is a bad idea. You won't likely find one, and even if you do, they may not be able to contribute much to a small company. Instead, look for someone with a couple of years of experience so that you don't end up having to teach them how a company or business operates.
You probably need to hire an HR consultant who can work with you for a few weeks or a month to prepare policies and processes. Then, you and your admin assistants should implement them.
Please remember that policies and processes are flexible and can be changed, but any changes should have a valid reason.
Regarding holidays: I have other service clients who provide 4 fixed holidays (national holidays) and 4 optional holidays that each employee can select at the beginning of the year. However, it is essential and required by law to provide leave. Check the state rules. Generally, after one year of service, employees are entitled to 15 or 21 days of leave that they can use as needed. No leave is allowed in the first year. Employees can take leave without pay with the approval of management (you).
For more details, you should consult with a professional as it requires much more detail and focus than what members of this forum can provide.
From India, Mumbai
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Dear Mahajansahab,
Other learned members have given their suggestions. Few have asked questions on your post. You have replied to some and left out a few. Anyway, this post is out of curiosity. Your login ID is "Mahajansahab." Is this made up of two words, i.e., Mahajan + Sahab? The word "Sahab" (high-ranking official or a person in a position of authority) has been a legacy of the British Raj. Is the context the same in your case as well?
For Mr. Saswata Banerjee: While a company may or may not have an HR person, what the organization needs are HR systems and processes. We need an HR person so as to have sound HR systems and processes. Many of the organization's ills arise as they do not have HR.
Thanks,
Dinesh Divekar
From India, Bangalore
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Other learned members have given their suggestions. Few have asked questions on your post. You have replied to some and left out a few. Anyway, this post is out of curiosity. Your login ID is "Mahajansahab." Is this made up of two words, i.e., Mahajan + Sahab? The word "Sahab" (high-ranking official or a person in a position of authority) has been a legacy of the British Raj. Is the context the same in your case as well?
For Mr. Saswata Banerjee: While a company may or may not have an HR person, what the organization needs are HR systems and processes. We need an HR person so as to have sound HR systems and processes. Many of the organization's ills arise as they do not have HR.
Thanks,
Dinesh Divekar
From India, Bangalore
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The company has two branches. The need for an experienced HR arises since compliances from 2 states have to be done. The fact that HR is not there would mean a lot of groundwork would be needed to set up HR system from the initial stage itself. Hiring an HR person/consultancy will help set up all required HR processes. The Director needs to focus on core areas and allow routine HR processes to be undertaken by employees/consultants. Many administrative problems such as leave, exits, recruitments, etc., will get sorted at a lower level, leaving higher officials to focus on the bottom line.
From India, Pune
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From India, Pune
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Hi Mr. Mahajan,
In any case of being asked to leave, the company is liable to pay until the employee's last working day in the organization. If the employee is leaving voluntarily, then the employee is liable to pay back the notice amount as recovery to the company.
Thank you.
From India, Kolkata
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In any case of being asked to leave, the company is liable to pay until the employee's last working day in the organization. If the employee is leaving voluntarily, then the employee is liable to pay back the notice amount as recovery to the company.
Thank you.
From India, Kolkata
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Hi Mr. Mahajan,
I am interested and can do this for you - if you can pay my professional charges. Major Deepak Mehra, HR Generalist, Consultant, Trainer, and Mentor. Owner of Spice Consultants in Delhi. An outside consultant with over 30 years of experience. Contact me at 9810765650.
Key Skills:
- Setting up HR Systems, Procedures, and Processes.
- Training and Induction.
- Administration and Corporate Affairs.
I am looking for consultancy or short/long-term assignments.
From India, New Delhi
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I am interested and can do this for you - if you can pay my professional charges. Major Deepak Mehra, HR Generalist, Consultant, Trainer, and Mentor. Owner of Spice Consultants in Delhi. An outside consultant with over 30 years of experience. Contact me at 9810765650.
Key Skills:
- Setting up HR Systems, Procedures, and Processes.
- Training and Induction.
- Administration and Corporate Affairs.
I am looking for consultancy or short/long-term assignments.
From India, New Delhi
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Dinesh, I agree. But for achieving that, it does not need to have an HR person with 12 years of experience. Such a person will be unable to fit into a position in a small company and will probably give rise to more problems. What you are saying can be achieved by someone with a couple of years of experience, but coupled with proper HR policies and processes implemented. Which is why, I have suggested that he should get an HR consultant to set up the proper processes and policies for him.
From India, Mumbai
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From India, Mumbai
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Dear Saswata,
We all agree that there is a need to put in place proper HR systems to address administrative and HR issues. Unattended problems will eventually lead to a loss of productivity and issues arising from a lack of legal compliance. Now, the director needs to decide whether to outsource or hire an HR professional. In my opinion, a HR person with 10-12 years of experience is crucial because setting up the system correctly from the foundation upwards is essential. Freshers may not possess the depth of knowledge required to establish a system that covers two states. Some posts in the forum by HR professionals reveal a lack of basic knowledge on issues such as PF, ESIC, etc. This lack of understanding is why I suggest someone with 10-12 years of experience in HR for such situations. Nevertheless, the director seems to have grasped the situation, and I am confident he will make a considered decision.
Thank you.
From India, Pune
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We all agree that there is a need to put in place proper HR systems to address administrative and HR issues. Unattended problems will eventually lead to a loss of productivity and issues arising from a lack of legal compliance. Now, the director needs to decide whether to outsource or hire an HR professional. In my opinion, a HR person with 10-12 years of experience is crucial because setting up the system correctly from the foundation upwards is essential. Freshers may not possess the depth of knowledge required to establish a system that covers two states. Some posts in the forum by HR professionals reveal a lack of basic knowledge on issues such as PF, ESIC, etc. This lack of understanding is why I suggest someone with 10-12 years of experience in HR for such situations. Nevertheless, the director seems to have grasped the situation, and I am confident he will make a considered decision.
Thank you.
From India, Pune
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Dear Mr. Mahajan,
Greetings!
There have been many replies to your posts, but I am still tempted to offer my views.
1. HR has to be there, but that doesn't necessarily mean that you need an HR. If you have the time and inclination to handle people issues, you can take on that role yourself for as long as you can. You will need to learn the basics and behave like an HR manager, not a director, at times.
2. Hiring and firing are not usually allowed, nor is it good for most companies. Please overhaul your selection process. Identify the problems that lead to resignations or terminations and try to select candidates who do not have these issues. Psychometric analysis may be helpful in such cases. Consider conducting activity-based interviews rather than traditional rounds. Observe your candidates closely and make informed decisions instead of relying solely on gut feeling.
3. Be patient with your employees. Allow them time to correct their behavior, and under no circumstances should you consider withholding payment for days worked. In the long run, this will only damage your company's reputation in the job market. Establish a well-defined probation period, set reasonable expectations, and ensure your employees adhere to them.
4. You may not be able to control holidays. India still has a higher number of working days compared to more developed countries. Consider hiring additional staff to offset the impact of holidays. More holidays often lead to better work-life balance, happier employees, increased production, reduced turnover, and a stronger focus on core business activities.
Consider Henry Ford's story of how increasing wages and reducing working hours led to significant profits.
5. Start considering compliance matters such as PF, ESI, etc. with your company now employing 30 individuals.
From India, Delhi
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Greetings!
There have been many replies to your posts, but I am still tempted to offer my views.
1. HR has to be there, but that doesn't necessarily mean that you need an HR. If you have the time and inclination to handle people issues, you can take on that role yourself for as long as you can. You will need to learn the basics and behave like an HR manager, not a director, at times.
2. Hiring and firing are not usually allowed, nor is it good for most companies. Please overhaul your selection process. Identify the problems that lead to resignations or terminations and try to select candidates who do not have these issues. Psychometric analysis may be helpful in such cases. Consider conducting activity-based interviews rather than traditional rounds. Observe your candidates closely and make informed decisions instead of relying solely on gut feeling.
3. Be patient with your employees. Allow them time to correct their behavior, and under no circumstances should you consider withholding payment for days worked. In the long run, this will only damage your company's reputation in the job market. Establish a well-defined probation period, set reasonable expectations, and ensure your employees adhere to them.
4. You may not be able to control holidays. India still has a higher number of working days compared to more developed countries. Consider hiring additional staff to offset the impact of holidays. More holidays often lead to better work-life balance, happier employees, increased production, reduced turnover, and a stronger focus on core business activities.
Consider Henry Ford's story of how increasing wages and reducing working hours led to significant profits.
5. Start considering compliance matters such as PF, ESI, etc. with your company now employing 30 individuals.
From India, Delhi
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