We’re living in an unprecedented age of startups.
With globalization, Startups have managed to taste success like never before. This has encouraged young talents to take a jump in the Startup pool.
However, 90% of startups fail within the first year. The ones that succeed have several things going in their favor and having a functional HR department is on the top things in that list.
Why is HR so important?
There’s one big reason: Startups require energetic employees that can get results and solve challenges. Whether it’s finding these people or building a culture so they feel motivated to stay, HR plays the most important role in making it happen.
Without HR you won’t have the right people. And without that, you won’t have your startup.
The role of Human Resource in startups
It’s about maximizing the potential of every employee. Below are some of the important roles of HR that keep your startup running smoothly and efficiently.
Allows a startup to hire the best talent
Everyone wants problem-solving folks on their team. When hiring, a startup not only has to compete with other startups but also cash-rich MNCs. HR can correctly analyze the hiring needs and create a brand image that will attract the right talent. It is a critical element, especially for startups looking to hire a diverse workforce.
Helps in maintaining and retaining the talent
The startup world is fragile. Most employees are looking for a stable opportunity and it is the reason a lot of them leave once they find that somewhere else. It’s easier to emotionally connect employees with the company values with a structured HR department and top management, which motivates them to stay longer.
Helps in maintaining the CULTURE
People love startup culture as it provides a lot of freedom and a platform for people to create their own set of processes. Progressive startups focus on the results rather than what the employees are wearing, where they are working from, and what’s their schedule. Offering people ownership and responsibility yields better results in the longer term. This culture of driving new initiatives and setting CORE values is built by the HR team.
Helps in building the structure and improving the policies
During the initial phase, most startups follow a flat structure without any hierarchies. As a startup starts growing, things scale up quickly. Especially if the number of employees starts growing over 50, then it’s better to build different structural hierarchies for different teams.
For example, the Marketing team initially had 2 employees and they reported to the CEO. Now, 3 new people have joined and it’s not possible for the CEO to check-in on all of them. So, the 3 new-joiners can report to the initial 2 employees who then report to the CEO on behalf of the team.
Any startup will fall apart if they don’t build a support system. Both management and HR are responsible for passively instilling this set of policies and hierarchies in the entire organization.
Helps in learning and development of employees
The culture at startups is such that employees are full of energy and enthusiasm. But this spark in employees will die if there is no continuous learning available for them.
During a transition from START-up to SCALE-up, the employees must bring their A-game to work. That’s possible with effective employee engagement and the development of the workforce.
HRs, with the heap of learning and development initiatives, will help you do exactly that.
This is how you develop a structured HR department
- Hire better: If you don’t hire the right HR people, don’t expect them to hire the best talent for your startup.
- Encourage accountability: When you give HRs the control, they’ll feel responsible and inspired to check-in on everyone.
- Offer trust: Don’t make HRs go round-round for permission on the small issues. Offer them trust and let them handle things.
- Invest in technology: A modern HRMS helps HRs streamline functions and provide a uniform experience to every single person at the company.
Finally…
As startups evolve and continue to grow rapidly, a lot of elements will play a significant role in their journey towards success. HR as a function is one of the key elements that’ll help organizations create a culture of empathy and give them an edge over others.
Now that you’re aware of the importance of HR in startups, set a plan for your HR department and grow like never before.
About the Author:
Dheeraj Kumar Pandey
Dheeraj is an HR Advisor and stands at the forefront when it comes to helping Business Owners and HR Heads to overcome Tech challenges in People process. He has spent his last 10 years playing a vital role in assisting Startups, SMEs and Enterprise organizations to harness HR technology for maximizing people’s potential, performance to drive business outcomes. Dheeraj has used Keka as the platform of choice in helping 5300+ HR professionals at over 3000 organisations.
