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HR Setup Roadmap

HR Setup Roadmap

Use this order when configuring HRM for a new company. Following the sequence avoids missing dropdowns, incomplete salary calculations, and payroll validation errors.

Stage 1: Organization Structure

  1. Manage Departments - Build departments and payroll posting defaults.
  2. Manage Job Classes - Define whether jobs are monthly, daily, or hourly based.
  3. Manage Job Positions - Create positions and their base pay anchor.
  4. Manage Pay Grades - Define salary bands and grade levels.

Stage 2: Time and Leave Rules

  1. Working Days - Set weekly working and non-working days.
  2. Holiday Calendar - Load public holidays and company closures.
  3. Work Shifts - Create regular, night, or split shifts if used.
  4. Manage Leave Types - Define leave codes and leave pay rate behavior.
  5. Leave Policies - Define entitlement, accrual method, probation rules, and effective dates.
  6. Attendance Deduction Rules - Configure absence-count or late-minute deductions if the company uses them.
  7. HR Settings - Decide whether payroll uses attendance-based working days or a fixed monthly count.

Stage 3: Payroll Component Masters

  1. Manage Pay Elements - Create earnings and deductions.
  2. Tax Brackets - Configure effective-dated tax slabs if tax is calculated in payroll.
  3. Statutory Deductions - Configure employee and employer contributions.
  4. Deduction Codes - Add any additional deduction categories the company tracks.
  5. Loan Types - Configure loan products before entering employee loans.
  6. Manage Overtime - Maintain the overtime list actually used by attendance and overtime request entry.
  7. Overtime Types - Maintain the additional overtime-type master if your implementation uses it elsewhere.

Stage 4: Salary Structure Rules

  1. Manage Salary Structure - For each position and grade, set pay element amounts or formula overrides.
  2. Payroll Formula System - Confirm any formulas before live payroll is run.

Stage 5: Employee Master Records

  1. Manage Employees - Create each employee with department, position, grade, shift, and payment details.
  2. Document Types - Configure document categories first if employee documents will be tracked.
  3. Return to Manage Employees and add salary overrides, documents, dependents, and other detail tabs as needed.

Stage 6: Go-Live Checks

  1. Run one test Payslip Entry for a sample employee.
  2. Review Attendance Report, Leave Balance, and Payslip History after testing.
  3. Use HRM Migration Validation after imports or major schema updates.

Common Setup Mistakes

  • Creating employees before positions, grades, and pay elements are ready. This leads to incomplete payroll setup later.
  • Assuming leave entitlement is defined in Manage Leave Types. Actual yearly entitlement is controlled in Leave Policies.
  • Forgetting to create a Basic pay element before using Salary Revision or salary overrides.
  • Maintaining Overtime Types but not Manage Overtime, then finding that overtime request entry has missing choices.