Human Resource Management
HR FOR START-UPS
Group no – 6
Presented by-
Avinash Nishad S 201241
Akash Patel 201246
Rachana R 201249
Chetan Rudrappa Tubakad 201255
Susheel Kumar S S 201286
HR FOR START-UPS
• Startups are quick-moving, dynamic businesses that don’t want to get bogged down
by unnecessary bureaucratic work and regulations.
• Failing to have an HR strategy in place for your startup is setting yourself up for
failure in the future.
• With nearly half of all small businesses failing in the first four years, we might think
that an HR department would simply hurt the company’s bottom line before it ever
gets off the ground.
The Need of HR for Startups
• While there is a myriad of reason a new startup might fail, ignoring the importance
of a human resource strategy is a major undoing of startups.
• In fact, businesses fail 23 percent of the time because they don’t have the right
people working in their team.
• A solid HR solution for startups can solve this problem. Hiring the right people to do
the job and implementing solid practices will help us retain our top performance.
Role of HR in Startups
• Without an HR strategy in place for the startup, we risk allowing negativity and toxic
work habits to establish themselves in the workplace, leading to reduced employee
morale and low employee retention. These are the main roles of HR that keep a
startup running smoothly.
i. Legal Protection
ii. Talent Acquisition
iii. Record Keeping
iv. Policy Creation
v. Employee Training
vi. Company Culture Development
Continuing of role of HR for startups
• Legal Protection: One of the primary role of HR is to make sure that startup is
complying with state and federal laws and regulation so we’re protected from
potential lawsuits.
• Talent Acquisition: A good HR department will help us hire the right employees and
ensure there are structured onboarding procedures in place.
• Record Keeping: HR departments are responsible for keeping business records,
resumes, sensitive information, and performance evaluation; for tracking sick time,
vacation time, and workplace accidents; and for keeping other records.
Continuing of role of HR for startups
• Policy Creation: HR policies provide employees with a structured work environment.
The HR department might consider creating policies on tardiness, benefits, employee
evaluations, discipline, internet policies, dress and grooming standards, holiday leave,
and more.
• Employee Training: Training new employees not only helps us beat our competition, it
is also a major factor in employee retention.
• Company Culture Development: One of the roles of HR in a startup is to make sure
the company lives up to its values by hiring people that align with the company’s
vision.
HR Requirements for Small Business
• HR solutions for startups doesn’t have to be a drag on the company. Instead, we can
organize the HR strategy for the startup so it creates a flexible environment that
allows the company to operate the way we need it to.
• For startups, an organization can build an HR solution that meets the needs of the
company while maintaining flexibility for employees.
• Even if we choose procedures from the more flexible HR strategies, the role of HR in
a startup is still to provide some much-needed structure, help us negate risk, and give
us team a leg up.
HR Challenges and Mistakes in Startup Companies
• There are a lot of HR challenges for startup companies and they are as follows:-
o Getting management buy-in
o Establishing Policies
o Recruitment/Hiring Employees
o Training Employees
o Providing feedback to Employees
o Documenting Performance
o Employee Retention
o Firing Employees
• Many of these challenges occur whether the is a start-up or not, it’s important to
understand the unique challenge each of these presents to a new company and why
they matter.
HR Strategies and Solution for Startups
• For every HR challenge startup companies face, there is a solution that will help the
company succeed.
• The role of HR in startups is vital to the success and implementation of each of these
solutions.
o Management Buy-in:- Since management buy-in for HR expenses can be a challenge in startup companies, HR
departments need to explain why they are important and valuable to management. Before getting the buy-in of
management, HR needs to establish a solid plan on what changes need to occur and how that plan will be carried out with
data to back their claims.
o Policies and Procedure:- Outlining policies and procedure can help eliminate a lot of confusion and keep business
practices and keep business practices cohesive.
o Hiring:- Startups have limited resources due to which we need the very best people for the job who can effectively
contribute to our budding business.
• Training:- Startups need to establish a training plan for new hires and established
employees, especially as the company grows. We need to help them understand their role
within their department, teaching them company guidelines and policies, and allowing them
time to feel comfortable using their equipment are all critical tasks HR can do un a startups.
• Feedback:- One of the roles of HR in a startup is to provide an outlet for employees to
express complaints, dissatisfaction, and opinions. Employee feedback show both positive
and negative about the company.
• Retention:- Some of the best way to keep employees are by showing them respect, giving
them additional, meaningful responsibilities, offering rewards that aren’t monetary, giving
generous time-off.
• Firing:- If time taken to identify and communicate any performance issues with the
employee and the situation has not improved, it’s probably time to terminate employment.
Firing an employment should be thoroughly documented and should be an objective,
performance-based process.
THANK YOU
