Why Startups Must Include a Reliable HR Team

Michael Finnigan
Nov 04, 2019

Nowadays, the number of business enterprises that are up-and-coming is phenomenally high. Sadly, most people launch their startups without understanding the need of employing a credible human resources team. This is because of the common misconception that employing an HR team is an expensive option. Most entrepreneurs think that an HR manager will be enough to handle administrative activities or that their employees are capable of taking care of the administrative department as well. 

Note that your employees are likely to get overwhelmed or exhausted with the additional burden on them. This will surely pose a negative impact on their overall performance which is likely, in turn, to keep you from achieving your business goals. Legal issues, high attrition rates, work inefficiency, etc., are some of the few common issues that are likely to arise in these situations. This explains why it is significant to have an individual HR section to ensure the growth of your new venture.

Some businessmen think that only established companies require an individual HR team. On the contrary, startups and developing companies require a credible and reliable HR team the most. In order to give you in-depth knowledge, below are some of the significant reasons why startups must focus on hiring a supportive and reliable HR team.

Build a diverse team

You are likely to be investing in a business not only to just increase your bank balance but also to contribute something to the world. Nowadays, employees are also thinking the same way; they are not just looking for any organization that will pay them enough. Rather, millennial employees are looking for enterprises that are capable of addressing issues such as racism, poverty, unequal job opportunities, gender inequality, etc.

In simple words, you will have to build a diverse team that will contribute to the growth of your business. Note that having a skilled HR team on your side will be beneficial in this case since they will help with structuring a diverse team and will offer equal chances to every applicant without any bias.

Supports your company

One of the major responsibilities of an HR team is to understand and support the overall business plans and strategies of a company. This will increase the value of your brand in the market. Plus, the right HR team can help you maintain a healthy environment at your workspace from the very beginning.

They will be skilled to train your employees in such a way that they’ll embrace the values, purpose, and strategies of your enterprise. Otherwise, they will help find the right candidate who will just blend in. Some companies tend to outsource this task. However, it’s better to do your employee recruitment task in-house rather than outsourcing.

Identify great talents

The current economy boasts a high employment rate. Hence, most newbie entrepreneurs tend to think that finding the right employee is just a cakewalk. Unfortunately, this is not the case. Note that the task will be extremely challenging when you have just a handful number of positions to fill. After all, even the smallest scale employee in an organization must be highly skilled and able to contribute to the success of the company.

Without any doubts, Human Resources department personnel will be trained to identify the right talent for the available position in your company. This is highly important for a startup when compared to an established venture since you are likely to struggle in the competitive field when trying to build a brand of your own. This will be much easier with the right employees.

Better retention

Another factor that plays a significant role in the growth of your company, especially during its developing stage is employee relations. It is to be noted that happy, engaged, and productive employees are the assets of every well-known business empire. In fact, many studies claim that companies that keep their staffs happy and engaged are likely to grow 202%. This can also help trim down your employee recruitment and training costs.

An efficient HR team will be aware of this and would take several steps that focus on employee satisfaction and engagement. Some of those common yet effective steps include; resolving conflicts between staff members with a positive note, promotion, free time activities, appraisals, vacation packages to the best employee or team, incentives, etc.

Legal compliance

When you start a business, you must be aware of the state and federal laws that can affect your business and employees. Usually, these laws and requirements are likely to get more complicated as your business flourishes and expands. Hence, it is important to assure that all the legal matters are handled properly in order to avoid any kind of complications in the future.

Your HR team can help you with this as well. They will look after all such legal formalities and will ensure that the company as well as the employees are compliant to the prevailing rules and regulations. On a related note, understanding the state or federal laws and requirements will not be that easy for an untrained person or team.

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