Most founders think starting an HR function means hiring an HR head. It doesn't. You can — and should — build a working HR function in 90 days, with no dedicated HR person, using one operations lead and a clear plan. Here's the plan we walk founders through.

This isn't a full HR transformation. It's the minimum viable HR function: enough to keep you compliant, prevent the worst people-management mistakes, and create the foundation a real HR head can build on when you eventually hire one.

Days 1–30: Foundation

Goal: get the basics documented. Nothing complicated, nothing aspirational.

Documents to Create

  • Offer letter template — standard letter you use for every new hire. Includes role, comp, probation, notice period, key terms.
  • Employment agreement — signed at offer acceptance. Get this drafted by a lawyer once; reuse it for every hire.
  • Employee handbook v1 — five pages, not fifty. Working hours, leave policy, expense policy, code of conduct, grievance process.
  • Onboarding checklist — what every new joiner gets in their first week (laptop, access, intro meetings, training schedule).

Tools to Set Up

  • A simple HRIS (Keka, GreytHR, or Zoho People in India). Cost: ₹50–150 per employee per month.
  • Payroll integrated with the HRIS or via an outsourced provider.
  • One shared drive folder (with controlled access) for HR documents.

Days 31–60: Policies

Now that you have basic infrastructure, add the policies that prevent disputes.

The Three Non-Negotiable Policies

  1. Leave policy. Casual leave, sick leave, earned leave, paternity / maternity. Be specific. Vagueness here causes the most disputes.
  2. Expense and reimbursement policy. What's reimbursable, what's not, approval thresholds, claim deadlines. Without this, expenses become a slow leak.
  3. Anti-harassment / POSH policy. Required by law in India for any employer with 10+ employees. Don't skip this.

Compliance Setup

  • PF / ESIC registration (mandatory at certain thresholds).
  • Professional Tax registration (state-dependent).
  • Internal Complaints Committee (IC) constituted under POSH.
  • Statutory leave compliance per state Shops and Establishments Act.

The compliance work isn't glamorous. It's also not optional. A founder who skips it doesn't realise they have a problem until they're trying to fundraise — and the diligence reveals six months of unpaid PF.

Days 61–90: Cadence

By day 60 you have documents and policies. Now you install the rhythm that makes HR a function instead of a folder.

The Monthly Cadence

  • Payroll on the 1st — predictable date, no exceptions. Builds trust faster than anything else you can do.
  • 1-on-1s with everyone, monthly minimum — 30 minutes, three questions (see our performance reviews framework).
  • Headcount and attrition tracker — updated monthly, shared with leadership.

The Quarterly Cadence

  • Quarterly performance check-ins (using the framework above).
  • Comp band review — are you still competitive in your category?
  • Compliance audit — pull your HRIS report, check that everyone's documents are current.

The 12 Documents

If you do nothing else in the first 90 days, create these 12 documents:

  1. Offer letter template
  2. Employment agreement
  3. NDA (separate from employment agreement)
  4. Employee handbook
  5. Onboarding checklist
  6. Leave policy
  7. Expense and reimbursement policy
  8. POSH policy
  9. Performance review template (one-page)
  10. Exit checklist (for departures)
  11. Code of conduct
  12. Grievance / escalation process

Store them in one folder. Reference them in every hire's onboarding. Update them annually.

The minimum viable HR test

If a senior person quits today, do you know what they're owed, what they have to return, and what process to run? If yes, your HR function is working. If no, you're one departure away from an avoidable mess.

When to Hire a Real HR Head

You don't need a head of HR until you have ~25–30 employees. Below that, the volume isn't there. Above that, the cadence above starts breaking down — there are too many 1-on-1s, too many onboarding sessions, too many disputes for the founder or ops lead to handle.

When you do hire, hire someone with hands-on experience scaling an HR function — not a strategy person from a large corporate. The cost of getting the foundation wrong is much higher than the cost of overpaying for someone who can build it right.

Working through this and want hands-on help? Explore our HR consulting services — we offer retained partnerships, project sprints, and 30-day audits.