Starting an HR function from scratch isn’t simply an administrative task it’s a cultural inflection point. When done with intention, it becomes the architecture behind a thriving, high-performing organisation. I’ve had the privilege of building three HR departments from the ground up often armed with nothing more than a borrowed desk and a belief in the power of people.
This isn’t just about policies and payroll. It’s about shaping a space where operational precision meets human connection. Here’s a grounded, experience-backed path to creating an HR department that actually makes a difference.
1. Gauge Your Starting Point: Clarity Before Complexity
Begin with a diagnostic lens. What currently passes for HR in your organisation? Are there scattered recruitment efforts? Perhaps a few loosely written policies in circulation? Assign a score (0 to 10) to each HR domain like talent management, compliance, onboarding to assess whether you’re building from bare bones or renovating existing foundations.
Ask yourself:
- What tools (if any) are in use for HR workflows?
- How involved are line managers in HR practices?
- Are talent conversations happening beyond hiring?
- Which policies exist and which ones are mission-critical to introduce?
Like any good architect, you must understand the landscape before designing the blueprint.
2. Bring Order to the People Files
Every journey through the employee life cycle begins with robust, secure records. If your files are scattered across departments or saved under ambiguous folder names, now’s the time to consolidate. Create digital personnel files for every employee and collaborate with IT to ensure proper encryption and access controls.
Think: payroll histories, right-to-work documentation, performance reviews, and training logs—organised, consistent, and compliant.
3. Set the Policy Framework
Policies are the scaffolding that allows culture to flourish. Begin by codifying the essentials those that shape day-to-day operations and ensure legal adherence.
Focus on:
- Working hours and attendance expectations
- Recruitment and performance evaluation
- Leave entitlements and grievance procedures
- Anti-harassment and inclusion principles
- Codes of conduct (including social media usage)
- Health, safety, and confidentiality
Keep it plain, accessible, and actively shared—policy that lives, not just files that gather digital dust.
4. Recruitment and Onboarding: More Than Just a Warm Welcome
Define a repeatable recruitment rhythm from job briefings to offer letters. Outline who’s involved, what documents are required, and how interviews will be structured.
Then shift your lens to onboarding not just a checklist, but a human experience.
Break it into five moments:
- Pre-boarding – Building connection before Day One
- Day One – First impressions count
- Week One – Cultural immersion and clarity
- First 90 Days – Performance scaffolding
- End of Year One – Long-term alignment
An onboarding process done well is your first act of retention.
5. Document Total Rewards with Purpose
Beyond payslips lies the psychology of recognition. Map out your salary structure and core benefits such as paid leave, pension schemes, and health cover. Then consider layering in:
- Performance-linked incentives
- Wellness stipends or insurance top-ups
- Equity or long-term reward mechanisms
Create a “Total Rewards” narrative—one that shows employees the full value of what they receive.
6. Audit Your Systems for Scale and Compliance
Assess your current digital ecosystem. Do you have:
- A reliable payroll engine?
- A centralised HRIS?
- Applicant tracking tools?
- L&D platforms for growth?
- Systems that track performance reviews?
Prioritise platforms that reduce risk, automate the mundane, and scale as your workforce grows.
7. Keep the Legal House in Order
Compliance isn’t just about avoiding penalties it’s about trust. Familiarise yourself with national labour laws, data protection protocols, and regional rules if you’re operating remotely or internationally.
Revisit employment contracts, right-to-work documentation, and mandatory disclosures. Where unsure, lean on legal counsel or compliance professionals.
8. Build a Living Employee Handbook
Think of the handbook not as a static PDF, but as a welcome guide and cultural compass.
Include:
- Vision, mission, and values
- A short organisational history
- Summarised policies and entitlements
- Guidance on where to go for support
Tools like Handbooks.io make formatting easy, but tone is key clear, approachable, and inclusive.
9. Design a Learning Culture from the Outset
Start by asking: What do we need to learn today to stay competitive tomorrow?
Conduct a skills gap analysis. Hold career conversations. Identify rising stars and future gaps. Then, build a simple but scalable L&D programme leveraging mentors, e-learning, workshops, and coaching where possible.
Encourage each team member to own a personal development plan. Growth is contagious.
10. Craft a Forward-Focused HR Plan
What capabilities will your organisation need six months from now? A year?
Map out your hiring plans, workforce development needs, and HR initiatives against business objectives. Budget accordingly and revisit quarterly.
Think of it as your HR roadmap part GPS, part compass.
11. Scale the HR Team at the Right Time
A solo HR lead can manage up to 50 people. Beyond that, consider when to expand.
Start with generalists, or explore bringing in recruiters, L&D leads, or operations support as needs dictate. Consider internal mobility as well some of your best HR talent may already be in the building.
In Closing: HR as Culture Custodian
Building an HR function from scratch is a strategic act equal parts operational rigour and human empathy. When done right, it becomes the heartbeat of a culture where people flourish and performance thrives.
Equip yourself with adaptable templates. Stay plugged into emerging trends. And above all, remember: success is built on the strength of your people.
