Many new startups feel, and wrongly so, that HR is for the established firms and that the associated costs are not worth the effort. However, it is proven that HR is one of the key building blocks for startup businesses. This is somewhat confusing in that there is quite a lot to do at the startup phase, and to add staffing to this can be quite daunting, and thus it is often left until there is a problem or the startup feels they have enough staff to warrant actual HR.
Startups and their needs
The general premise is that startups need the right people with the right attitude at the right time. Startups need to be more flexible than your established business as they are still setting processes and systems in place and have to operate in a fast-paced and uncertain environment. Yet, it is the skills to manage this uncertainty and remain productive that are paramount. There is never enough time or resources for a startup business owner and manager, and they are always left questioning whether they are looking after their main resource, their people, in the right manner.
The easiest way to deal with these issues is to ensure that your startup has a solid HR team, or based on the fact that the business has yet to take off, use a reputable HR firm and outsource the function. This is common in startups that do well.
The specific HR needs of startups
For a startup, having the right staff in place as aforementioned is a defining characteristic and will go a long way towards ensuring business success. This is a complex process, and most startups do not have the time nor the money for longwinded complicated recruitment. You will need to be specific as to the business needs and then communicate this with the HR firm that will then be able to set it all up to provide you with the right people at the right time. The right onboarding process is essential if staff can join in and feel that they are really a part of the business.
1) Having the right contracts of employment in place
This is the most often neglected aspect of the employment process for startups. It is realized in the industry that startups can be quite casual about the regulatory issues around staffing in the early stages. Goodwill and a great team spirit are great. Still, it is best to have a professional produce clear contracts that provide security and avoid legal action and any disagreements when it comes to money and livelihoods.
2) Keeping the right employees
Retaining employees is paramount to building the right team, and as anyone who has watched startup growth in the last decade will know, the right team is the best way to get to your business goals.
3) Building the company culture
Startup culture is one of the driving forces of successful small to medium-sized businesses. It is proven that culture can impact productivity, and as such, your bottom line needs to get this right from the outset. Having a few words on a wall that speak to values and ethos is great, but establishing the culture, you need to set norms, and your HR will be the only function able to inculcate these in your workforce.
4) Localized services
Having a local firm to deal with your HR can be the best thing for a startup. They will understand the context and the culture of your staff. The idea, for example, is that if you are based in the Utah area, you would likely look for hr outsourcing salt lake. It is the dominant city in ‘Silicon Slopes,’ an area that has attracted many new startups and, as such, will have a range of useful services. The main idea with a localized HR service is that they can be real. You and your team will actually meet and discuss team building, company culture and embark on training journeys with people you know.
Having the right people to discuss your HR solutions is as important as having the right software to implement and run your startup HR function sustainably.
5) The Basic HR
Wages, benefits, development, and training are necessary to achieve the preceding objectives and will essentially be managed by the startup HR. These business aspects are noted as ‘the basic’ HR and can sometimes be overlooked but put together and analyze the time required for them, even for a small team. You are left with less time to focus on the core aspects of business development.
Why a managed HR service is best
Star up Hr needs will change daily. Just as the business needs to remain flexible, so too will the need for staffing and thus human resource management. The trend amongst startups has been to use a managed or consultancy HR service to provide the services detailed above on an as and when needed basis. This is a better solution than simply using cloud-accessible software to run the HR function.
However, this still requires person-hours and maintenance, while a targeted approach to specific needs by a team of consultants is likely to get you where you need to be quicker and is more cost-effective. An outsourced HR service for startups will deal with specific issues as and when they arise as long as you have the service contacted. This provides a level of security and stability for you to run and grow the business. However, it is vital to ensure that it is not a rushed process and the firm you choose is made aware of the specific startup ethos, goals, and primary aims to assist in line with these.
Thus, startups have particular HR needs that must be met, or the business is likely to fail. Startups are thus encouraged to gather as much information as possible about their business human resource needs and wants and then be able to secure the correct service provider or consultant to provide these services.