Primary HR Challenges in Startups
Employee Engagement, Employee Relations, Rewards and Recognition
When you are running a start, you have to make sure that each decision of yours is a well-calculated one, there isn’t much room for errors while propelling a start-up. The HR problems are considered very negligible and harmless by most of the start-ups which are a huge blunder made by them due to their naivety. This is the major reason why most of them fail at initial junctures. Some of the prominent issues each Startup faces include employee management, Recruiting, training, and development. All these issues are managed by the HR department of any company. In short, it is the employees that make a Startup successful. And for that, an experienced HR team is more than adequate.
Analysing the prominent dimensions where the HR Department of start-ups might suffer
Policy Construction: Ensuring the most optimized policy structure is the primary responsibility of an HR department. They should design it well enough before everything for a smooth run with the rules and regulations trimmed exactly for the start-up. Major things that the department should consider for its construction include Recruitment, Attendance, Leave policies, Employee Financial Policies, and Termination policies. As employee satisfaction depends on all this, the process is very complicated.
Automation of Micro-management: Miscellaneous activities that require less productivity such as attendance, leaves, employee management, etc. are eating up the precious time of HR personnel. With many other better things to focus on. To add on to the woes, it is equally tricky to look for substitutes.
Recruiting and Keeping the Talented: As a newly budding company, there is a huge drought in the availability of talented candidates interested to work there.
But the most critical part is sustaining the bank of employees you have managed to pool. This is where the HR department has to keep the employees satisfied with good wages and other incentives. As it is said, Hiring the right employees can make or break your business, keeping the right ones could too.
Mistakes that are equivalent to a colossal sin for the HR department to commit
Lack of Onboarding: not facilitating new employees to blend in with the particular culture of the company by giving them proper training and guidelines. This onboarding will make them feel like they have a good role in the system to run smoothly and gives them a purpose to work for.
All this will be absent with careless recruitment and will expose the incapability of the HR.
Incompatible Administration: Staying organized is the most important recipe for long term success. The organization of administrative records in a systematic manner without making amendments for the sake of some employees will keep the company running smoothly. Keeping the tracking habits on track will let you make educated decisions on giving your employees a raise or giving some information to the information-hungry investors. The unhappy auditors are another trouble you may get into from this poor HR mistake.
Giving no heed to Employee’s need for Development: Every employee wants to feel like they are going to leave a legacy behind when they leave the job. They like to see some development in their work life. For this, the employees should be given the necessary information about opportunities and resources available for them to learn new skills and training. The recurring meetings for knowing the employee’s suggestions could help in this.
Another major part of this issue is Failing to train for Managing Skills. The need for new managers cannot be rectified by simply appointing someone who is good at doing some job in the start-up.
Checklist to be met before offering someone a managerial position:
The person should be well versed with the new role including what is expected from them in their performance. The transition from an employee to a managing position should be understood. Their capability to recognize other employee’s requirements for additional resources and support.
Unprofessional Relationships: In small start-ups, the employees may get close to each other. This personal bonding is never advised for the success of any business setting. This makes it hard to let the employees go when it is needed. Giving proper heads up, allowing them to reach for better opportunities that are impossible for you to offer, etc. requires you to let them go.
Factors advocating the demand for Human Resourcing Strategy for Startups
One can enumerate tens of possible reasons why a new Startup could fail in the first few months or years. But if you’ll ask for that one defining factor, it has to be Human Resources. Overlooking it will make the biggest harm than anything else.
Somewhere around a quarter of the startups fail only because of hiring the wrong people, or lack of right people working for them at the right time.
A new Startup requires an easy and effective recruitment strategy which will give them highly skilled employees in the most cost-efficient way.
For a new company, it’s more than hard to find the right person or any highly skilled employee with the lack of reputation or trust which they have to develop with time. To counter these issues there are some solutions.
Still, everything isn’t lost: Solutions for the Human Resourcing Problem.
Shifting the focus towards RPO’s or Recruitment Process Outsourcing will enable any company to recruit workers who are very compatible and customized for the particular requirements of the company. This will enable them to access a well-trained workforce without scratching their brains out.
RPO’s have the perfect insights which they have accumulated analysing the Analytics and reporting for many companies. The cost efficiency and scalability according to the precise requirements of the Startup make it a very attractive solution. It takes fewer hiring hours and improved work efficiency in other areas that require more focus
Developing the right Culture for HR to work on: A sound Human Resourcing Strategy that works on a well-defined culture sets the tone for the organization perfectly. It propels towards the betterment of the Startup for the long term keeping the employee satisfaction at the apex.