Many startup entrepreneurs get their businesses off to a promising start, but soon grapple with people management, especially after expansion where more employees are recruited to the team. They overlook the fact that managing people requires training, skills, and expertise – qualifications that HR managers and personnel have.
Human Resources (HR) is an umbrella term used to describe the recruitment, management, and development of company employees. The basic functions of the department include recruiting manpower, onboarding, managing records and documents, preparing compensation and benefits, evaluating performances, facilitating training and development, processing exits of employees, complying with government laws and regulations on labor and employment, and shaping the overall company culture. In other words, the department helps create and maintain a happy, legal, and effective workforce.
In this article, we’ll cover the most common documents, contracts, forms, letters, and other tools that are used by the Human Resources (HR) Department for various purposes in their daily operations. Some may not really be necessary yet, especially if the business has just been launched.
A. Employment Contracts and Other Recruitment Documents
Recruitment serves as the cornerstone of talent management. Generally, the process involves assessing the talent needs of the company, creating job descriptions, posting vacancies, screening applicants, conducting interviews, and hiring the most qualified and suitable candidates.
1. Staffing Plan
It is a document, containing information such as staffing needs, job titles and descriptions, hiring and onboarding periods, budgetary considerations, etc., that serves as a roadmap for the HR Department to align the business organization’s talent or employee needs with its objectives. For example, if the company focuses on expanding its operations, the plan can help prepare the department for that growth, primarily by hiring the right people with the right skills.
2. Job Descriptions
As a document, it provides a list of job titles and their corresponding descriptions, responsibilities, compensations, qualifications, requirements, and immediate supervisors. It serves as a detailed reference for the explanation of the positions to the applicants and hirees and in drafting the necessary contracts.
3. Job Application Form
It is also known as an employment application form (i.e., either physical or online), and it provides an effective and efficient way of gathering important information from job seekers interested in the job vacancies. It streamlines the hiring process as it entails the ease of pulling out qualifications from stacks of applications.
4. Candidate Evaluation Form
Particularly used during actual job interviews, it is used by the hiring team to rank the candidate’s overall qualifications based on the job descriptions, usually by assigning numerical ratings and writing specific comments.
5. Interview Materials
These include interview schedules and guides with lists of questions based on the staffing plan and job descriptions that are very helpful in hiring the right people with the right skills based on their interview performances.
6. Job Offer Sheet or Letter
It is a formal document provided by an employer to the prospective employee, officially extending a job offer and outlining the employment terms and conditions, functions, and compensation offers, among others.
7. Employment Contract
Unlike a job offer that comes in the form of an invitation for employment, a contract comes with a higher degree of legality and serves as a legally binding agreement between the employer and employee.
8. Non-Disclosure Agreement
It may be a special section or clause in the contract itself or a standalone document. It is also a legally binding agreement for employment arrangements that usually involve sensitive information. With this, the company can share sensitive information without fear that it will end up in the hands of competitors.
B. Employee Onboarding Documents
Onboarding is the process of introducing newly hired employees to the company and its people. It is a crucial step for the employees to complete the required paperwork, understand their positions and job requirements, identify their immediate heads and other key people, and integrate into the new workplace.
9. Employee Information Sheet
It is usually a multi-page form that captures the essential data about the individual employee, such as personal details, emergency contacts, statutory (i.e., SSS, PhilHealth, and Pag-IBIG Fund) and BIR registration numbers, and other information.
10. Employee Handbook
It is a manual that guides newly hired employees through their employment journey by providing condensed information about the company and by explaining the policies, procedures, expectations, and benefits, among others.
11. Employee Code of Conduct
It is a written set of rules that establish standards of behavior in the workplace and provide a clear direction for the organization’s values and ethics. It may already be contained in the Employee Handbook or a standalone document.
C. Employee Management and Recordkeeping Documents
Employee records management is another essential component of human capital management. The efficient process of storing, filing, and organizing employee data throughout the employment lifecycle enables the company to establish regulated access to sensitive data.
12. HR Admin Manual
As a manual, it provides a framework of principles, policies, procedures, guidelines, tools, and even document templates to serve as a practical guide for human resource management. The policies, procedures, and guidelines are anchored on the DOLE labor and employment policies and other applicable laws.
13. Organizational Chart
Either it is organization-wide or per specific department, the diagram visually conveys the business organization’s internal structure or bureaucracy. It may also detail the roles, responsibilities, and relationships between individuals within the entity.
14. Employee Masterfile or Employee Master
It is a centralized record of all company employees and includes details, such as their names, addresses, contact numbers, job positions, social security and tax registration numbers, salaries, and more. It helps the HR Department keep track of employee information, manage payroll, and ensure legal compliance.
15. Employee Information Update Form
It is used to ensure that the HR Department has current details on employees, including addresses, emergency contact information, and educational and professional credentials, among others, which may be used when receiving reference requests, promotions, and other purposes.
16. Certificate of Employment (for Current Employees)
Anybody who was and is an employee of the company can request an employment certificate that validates their employment status or history. For current employees, the COE may be requested for credit card applications, loan applications, visa processing, higher education or graduate school enrollment, and other purposes.
17. Employment-Related Letters
These are sent to the individual employees informing them about the status of their employment, e.g., extension of probationary employment, confirmation of regular employment, non-regularization of employment, etc.
18. Memos on Staff Lateral Transfers, Promotions, and Salary Increases
These are intraoffice correspondences that inform the respective employees or teams about the changes in leadership after the lateral transfers and promotions of other employees. Salary increases may also be announced through memos.
19. Warning Notices
These communication documents, usually in letter format, indicate the employer’s serious concerns about the behaviors of the employees, detail incidences of misconduct, and highlight the corresponding consequences.
20. Notice to Explain (NTE)
These notices serve almost the same purpose as the warning notices, except that they are show cause letters, demanding written explanations from employees who are suspected of violating company rules and policies. These afford the employees the opportunity to explain their side before any disciplinary action.
21. Incident Report Forms
While incident reports may be drafted by the employees themselves based on their formats, having standard forms may streamline the process for information gathering and decision making.
22. Company Property Acknowledgement and Accountability Forms
These are filled out, usually by newly hired employees, to acknowledge receipt of the company’s equipment and resources and the accountability that comes with their use.
23. Time and Attendance Request Forms
These are used for the employees’ manual filing of leaves, undertime, overtime, and other requests related to the work schedule and timekeeping.
D. Compensation Management Documents
Compensation management pertains to the planning and distribution of overall pay and benefit packages to employees. It ensures that salaries and bonuses are competitive within the industry and equitable within the company.
24. Salary Structure
It basically outlines an organization’s approach to employee compensation levels for each job position within the company based on qualifications, such as work experiences, educational levels, skills, and responsibilities.
25. Components of the Compensation Package
There are two general components of a compensation package: direct and indirect compensation. Direct compensation includes the employees’ basic salary, extra wages for holidays and overtime shifts, merit pays for excellent performance, and others. Indirect compensation, on the other hand, involves others aside from money, such as paid vacation and sick leaves, health insurance, workers’ compensation, and other non-monetary benefits.
26. Bonus Policy and Calculation
It underlines the essential criteria, processes, guidelines, and computations for the company’s bonus packages. Bonuses may be performance-based, annual, spot, retention, sign-on, profit-sharing, and referral, among others.
27. Salary Increment Policy Calculation
Before handing out salary raises to employees, employers create a list of salary increment criteria to establish a standard basis. Salary increment, as based on a policy, is an increase in an employee’s current annual or monthly salary in the form of a figure or a percentage based on performance appraisals, tenure, company’s budget, industry’s economic situation, and many other factors.
28. Salary Slip
It is also known as a payslip, or a document provided by employers to their employees detailing the breakdown of their salary for a specific pay period. It typically includes components, such as basic pay, allowances, deductions, statutory contributions, and net pays.
29. Income Tax Return (ITR) Declaration Documents
These include income documents, deduction documents, and proofs of tax payments that serve as the bases for the filing of income tax returns at the end of the calendar or fiscal year.
30. Statutory (SSS, PhilHealth, Pag-IBIG Fund) Documents
Like the ITR Declaration Documents, these are needed for the employees’ registration and membership with the social security agencies, remittance of their monthly contributions, and other related transactions.
31. Employee Loan Agreement
For companies that extend loans to their employees, the document sets out the terms and conditions of loans between the two parties. It also includes details, such as the loan amount, interest rate, repayment period, and consequences of default.
E. Performance Appraisal Documents
Performance appraisal is the regular evaluation of the employees’ job performances and overall contributions to the company. It is also used to provide them with big-picture feedback on their work and justify decisions on salary increases, bonuses, demotions, promotions, and even termination.
32. Performance Appraisal Form
It is a tool used by managers and human resources staff for evaluating employee performance. A well-structured performance evaluation form and actual process enable benchmarking across teams and often lead to both employer and employee recognition of career development opportunities and areas for improvement.
33. Employee Feedback/Satisfaction Survey
It is a direct feedback tool that allows employees to share their opinions and experiences about their job. It also measures their feelings of contentment and empowerment.
34. Performance Appraisal/Warning Letters
While a performance appraisal letter simply communicates to individual employees the result of the performance evaluation, a warning letter serves as a formal means of communicating concerns about the employee’s performance, outlining areas for improvement, and setting the stage for potential corrective actions.
F. Training and Development Documents
Training and development programs provide employees the opportunities to bridge skills gaps, acquire new work and skills, improve existing ones, keep up to date with industry trends, and improve their overall work performance. These may also be used to improve workplace culture and increase employee engagement and retention.
35. Training Bond Agreement
It is a legally binding document made for newly hired applicants and even existing employees to protect the employer’s investment in the employee’s training and development. It is constructed with a clear understanding of the legal obligations and consequences while ensuring a balance of interests between the two parties.
36. Memorandum of Agreement (MOA) for Trainees
When employees are sent out for training at other affiliated institutions or companies, a memorandum of agreement (MOA) is used to set out the terms and conditions of such training.
G. Employee Offboarding Documents
Employee offboarding, also known as employee exit management, is the formal separation process the HR follows upon addressing employees existing in the company for whatever reason. It helps address necessary paperwork, minimize losses on the part of the company, and even gain feedback on how to improve certain aspects of the business.
37. Certificate of Employment (COE) for Resigned Employees
While employees may request an employment certificate at any point during their employment, it is a standard procedure for employers to provide the certificate upon resignation or termination. It particularly details the absolute start and end dates of employment.
38. Clearance Form/Certificate
The clearance process is a requirement imposed by management on an employee to settle all debts and obligations, including the return of company properties or documents, to be cleared of any accountability, and to be issued a clearance certificate.
39. Exit Interview Questionnaire
It is a form or document that the HR Department administers to resigning employees. It usually covers reasons for leaving, job descriptions, perspectives of the company culture, views of the work environment, and feedback about tools and resources offered.
40. Employee Termination Notice
It is a formal document used in the employee dismissal process for reasons, such as unsatisfactory performance, just cases, and authorized causes. It provides the employees with such reasons, important steps to take next, and any benefits or compensations to receive.
41. Memo or Letter on Retrenchment
Retrenchment refers to the termination of employment initiated by the employer due to no fault of the employee. It typically occurs during periods of economic hardships, like recessions or downturns. The Labor Code recognizes the right of management to conduct retrenchment to prevent losses during clear economic threats. For a valid retrenchment, the employer must serve written notice to both employees and DOLE at least thirty (30) days before termination. Affected employees are entitled to separation pay of at least one month’s salary or half a month’s salary for each year of service, whichever is higher.
42. Waiver, Release, and Quitclaim
It is a legal document signed by an employee relinquishing any claims against their former employer in exchange for a payment. It states that the employee received a payment in full settlement of any wages or benefits owed, and in exchange, releases the employer from any current or potential legal actions. The employee also agrees not to disclose any confidential information belonging to the employer or solicit its clients within a particular period of time.
Other legal documents, such as shareholder, standard service, subscription, and profit-sharing agreements, may also be necessary for running the business. These may be drafted, routed, and filed by the HR Department.
Final Thoughts
The role of Human Resources (HR) is often underestimated. For most people, the department has only three purposes — hire, pay, and fire employees. What they don’t know is that the HR wears many hats that change at any given time depending on the needs of the business. It is the strategic core of the business around which all other departments operate. For instance, effective and efficient HR documentation demonstrates professionalism, facilitates performance management, helps the management enforce policies, encourages compliance, and develops a positive company culture.
Especially for startups that may not have enough employees to justify the hiring of a full time HR manager or just a personnel who may need to become a generalist to cover all duties and responsibilities, it is more practical to just outsource the serRvices.
… and you might just need our assistance.
Outsource your Human Resources (HR), payroll, and other business post-formation needs and take advantage of the readily available legal contracts, document templates, and other tools in various formats (e.g., MS Word, PDFs, etc.) and that can be customized based on your company needs. Set up a consultation with FilePino today! Call us at (02) 8478-5826 (landline) and 0917 892 2337 (mobile) or send an email to info@filepino.com.
