As a Startup or Entrepreneur, do you need HR?

Founders work hard for long hours to get their business up and running. Often during that time HR and company culture gets forgotten

“25% of startups fail because they don’t have the right team.“

CB Insights

Startups need a dedicated HR representative early to attract and retain top talent. This is crucial to future business growth.

Another important factor for many startups is securing investments or loans. Banks and investors look for employee retention rates to determine the leadership team’s effectiveness.

A startup may be able to find a shortcut to business growth, but shortcuts are detrimental when it comes to managing people.

What does HR do in a startup?

• Set up the necessary HR policies and processes
• Grow the right team with the right people
• Ensure legal compliance
• Improve employee engagement and well-being
• Build a diverse and inclusive work environment
• Prepare the company for growth

Here are 7 areas People Stuff Inc. will focus on when working with a startup or entrepreneur

1. Strategy

The first step we take in creating an HR department is learning about the business and developing a corresponding HR strategy. We take the time to listen to the startup founders, the leadership team, and the employees to understand the business. These conversations enable us to get familiar with the product or service offered, the target audience, the industry, and the overall strategy. 

2. HR Essentials

The next step involves setting up the necessary HR policies and procedures. This includes but is not limited to:

• Recruitment
• Employee contracts
• Hours of work & overtime
• Employee leave policy
• Code of conduct
• Anti-harassment
• Employee performance development
• Accountability & Disciplinary procedure
• Termination Records & Processes
• Health and workplace safety policies
• Social media policy
• Drugs and alcohol policy
• Further policies and procedures can be developed based on the business’s needs

3. Be Employee-centric

The danger when in startup mode is the hyperfocus on the product and potential customers. Although this is essential, paying attention to the employees who build your product and are helping to achieve your vision is just as, if not more important. 

We help you understand your employee’s needs and shape your policies to ensure these are met while maintaining the overall strategy and goals of the business. 

We give your employees a voice, get to know them better, find out what motivates them, and create a learning and development plan.

The most successful startups build employee-centric cultures that stress growth and development. 

4. Establish a Recruitment Process

We help you establish processes and understand what your pull is. As you grow, it’s essential to have a solid recruitment process that meets the needs of the recruiters and candidates. This enables you to hire the right people for your company while fostering a culture that supports the organizational vision.

5. Establish an Orientation Process

We help create a structured and repeatable orientation process. Many startup companies fail to provide new employees with clear, formal working agreements. This is required by law and is a key step in ensuring your employees are happy at work and have peace of mind. 

6. Start Building Your HR Systems

The following are a few core systems that we recommend attaining and help setup

• Workforce management system
• Human Resources Information System (HRIS)
• Learning and development systems
• Performance management systems

7. Build your HR function with DEIB in Mind

We ensure diversity, equity, inclusion, and belonging (DEIB) when creating policies and processes and during the hiring journey. This helps build diversity in the startup from the beginning, while setting a precedent for an environment where all employees feel welcome, supported, safe, and respected regardless of gender, religion, ethnicity, or sexual orientation. This leads to happier and better-performing employees. As you scale your startup, this will make it easier to attract diverse candidates.