A-to-Z HR SET UP for Startups & Scale-ups
HR Evolution in a Startup "THE STORY"
55% of startups handle employment matters themselves without a proper HR department or personnel simply by delegating it to employees with little to no training and knowledge in the field or having it run by founders themselves.
More than 50% of startup business founders admit that they lack confidence and knowledge in HR management. Research found that HR matters are frequently assigned to office managers, admin staff, or even finance personnel—roles typically unfit for such tasks.
Another reason is that far too many startup founders consider HR as a non-vital function, so it is natural to neglect it until it blows up in their faces. For many startups, HR represents a paper filing function, that often looks like bits and pieces of random documents without any structure, all manual, no onboarding processes, and needless to say there haven’t been thoughts on performance metrics or L&D initiatives or anything else besides basics. A startup has other priorities and we get it.
Startup founders are typically juggling multiple balls, prioritizing profitability, marketing, and sales, at the end of the day this is what pays the bills, salaries, and what generates profit, the growth stage.
As the company grows and crosses the 20 + employees mark and more people join, things start piling up and people constantly want something from a person who takes care of HR things. New joiners feel that they stepped into chaos and existing employees start leaving for greener pastures, attrition is high. The tension rises.
If the above sounds exactly like how human resources are being handled right now in your company then know that you are not alone and read on.
As the startup grows into the next phase where things are a little more settled and profits are more achievable and stable, this is the crucial time where normally startups realize that it is the time to prioritize HR and ensure that the right tools are there to support business and talent. People are critical to the sustainability, success, and growth of the business and while managing people is not an easy task, it is the right thing to do. Priority over to HR- finally. Roll the drums!
What usually happens next is that the startup founder hires someone professional to properly set up and manage the HR function. Usually, the best person for the task is a senior HR professional with experience in setting up HR functions in startups. That would be the right choice, but the budgetary considerations might still be there, being a startup, which would mean this person would come at a very costly monthly overhead.
Often a company settles for a less experienced but also less costly choice- HR Admin or Manager without A to Z HR startup experience. And this might work out just splendidly, but might also be an upgraded version of the HR chaos or exactly what the company has been doing all along—a messy and “bits and pieces” HR process run by junior HR professionals. The company is back to square one.
Running a business without proper HR processes can hinder growth and sustainability needless to say compliance and legal matters are often at stake as well as the company’s reputation and brand name.
Setting up an HR function without the involvement of a senior HR professional is tricky at large, but does it have to be that expensive and do companies need them full-time while still being relatively small in size? Where is the middle ground?
We think a great middle ground is our A-To-Z HR Functions Set Up Solution that is perfect for startups and scale-ups.
If what we offer resonates and you would like to know more please book your discovery call with us so we can talk about your company and what we can do to help and answer any of your questions.
I would love to hear about what is working (or not working) for you right now in the HR domain.
I promise to keep it light and informative - just a friendly conversation to see if we might be able to help make your life easier.