In the case of many startup startups, this results from a lack of resources. CEOs and founders have various choices, such as how much time to invest in developing products or seeking additional funds.

But HR is an essential function for any business. Establishing an HR department in the early stages helps your business grow and can also handle the ethical and legal issues that arise in every workplace.

In this HR checklist, we’ve compiled the top areas startups need to consider when establishing the HR team.

If you want to revolutionize how you manage your employees, BambooHR can help. Our award-winning HR software was specifically designed to help startups, as well as small businesses, succeed., It lets you control people analytics, payroll, benefits, and much more, all in one easy platform. Learn more by downloading a no-cost demo today!

HR for StartupsStartups: Is It Necessary?

It’s simple; it’s true. No matter how large or small your business is, HR matters.

An HR department can help develop policies, procedures, plans, and policies to meet immediate needs and reduce long-term risks. Good HR policies will result in positive employee experiences and minimize your company’s liability.

However, developing HR policies and ensuring they comply with federal law isn’t only about preparing for an IPO or seeking external financing. An HR department can help your business:

Ensure ethical behavior. Stress the importance of demonstrating ethical behavior for your employees. In many cases, unethical behavior is an outcome of your company’s culture and should be taken care of by HR.

Be sure to comply with the laws governing employment. For example, if your company employs remote employees from different states, it is essential to understand which states have laws on at-will employment.

Use HTML0 to navigate policies that have changed. Your company has the right to modify policies at any time.

Manage benefits and compensation management. Your HR team should be working with the accounting department so they can answer any payroll-related questions employees might have.

Learn the fundamental truths about corporate culture. HR is there to support employees across all departments and should be aware of what’s happening. Your HR staff should interact and talk to other employees to gain a better understanding of the company, gain insight into the different perspectives of employees, and gain the trust of employees.

Set goals to grow. When creating your HR plan, ensure that the goals of HR and your company align. Set realistic goals for HR to be met within the initial 3 to 6 months.

Establish Your HR Department Structure

Your business doesn’t need a detailed organizational plan when you start; however, you will require a primary Human Resources department plan to establish structure and operations. This plan can serve as a reference point as your business grows and will aid in developing the HR division.

In contrast to a large company with 500 employees, StartupsStartups will probably have fewer resources and people. At a minimum, the department should have an executive leader who establishes company guidelines and monitors that they comply.

As per SHRM, the organization typically handles most of its core functions in-house.

Incentives and compensation.

Strategies and plans for employee communication.

Management of performance.

Implementing and developing HR policies.

Helping with strategic business planning.

Other HR tasks, such as payroll or benefits administration, are usually contracted to third-party vendors.

Use a Human Resource Information System (HRIS)

HR software aids companies of all sizes manage people analysis, performance management onboarding, and other aspects. However, it’s beneficial for startup startups.

If you are working with a limited budget to manage HR functions, an HRIS may aid in introducing fundamental HR functions into your company. We suggest acquiring an all-in-one system to handle these various functions. Otherwise, you’ll waste time and money working with disconnected systems that don’t work with each other.

For instance, BambooHR’s program has built-in tools that assist you in tracking employees’ time, attracting new employees, handling benefits and paychecks, automating administrative tasks, and more.

Additionally, BambooHR is designed to grow to meet your needs. Businesses with 20 or fewer staff members pay one flat fee, and as your company expands, we’ll automatically apply the discount for volume. Get a free price quote today!

Compensation Doesn’t Have to Be Complicated

From tax deductions to direct deposits, BambooHR Payroll makes it simple to oversee your entire team’s compensation all in one centralized system.

Nurture Employee Relationships

By 2023 less than 3% of Inc. 100 startup companies hold dedicated DEI leaders, in contrast to 85% of companies. Most startups struggle to establish and maintain an inclusive culture without committed support and resources.

The HR staff can assist in establishing guidelines before complaints arise to ensure you are prepared to deal with these issues. Be ready to address any concerns of employees by defining your business’s standards of conduct, establishing plans to address concerns, and setting up a process to gather employee feedback.

In addition to dealing with employee issues, you must adopt a personalized method of engaging employees to keep relationships. A once-a-year check-up will not suffice, and if you do not take into account employee satisfaction and engagement, it will result in employees who are unengaged from their job. Employees need to understand their role in the company, find an interest in their work, and develop the skills required to perform their job effectively.

Introduce Performance Management Processes

Training employees and assessing their performance might not be top of the list when you’re only beginning your new venture. One of the most critical aspects of establishing an HR department within an early-stage startup is ensuring employees are allowed to develop and grow their abilities and provide the appropriate feedback to enable them to improve. This is accomplished by keeping employee records and creating a performance evaluation procedure.

The inability to properly train employees could lead to lower performance and even the loss of employees. It could also affect your standing in the market if left unchecked.

Prepare for Audits

Another crucial aspect to consider when drafting your HR policy is to remember that you’ll be subject to audit at some point. In the meantime, your HR department needs to create areas to review and ensure compliance. Also, make sure that they are in line with manager and employee expectations.

By Vicki

‘HR Shopper’ has a 10 years of experience in management and HR in top 2 global MNC’s. Understanding the employee needs as well as organization productivity she adopts the techniques that create perfect balance satisfying the needs of both.

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