Benefits of HR For Start-Ups

What Are The Benefits of HR Services for Startups?

There are several reasons why having a HR service, to support and start up businesses, or growing/restructured business, based on the key important functions that all businesses should have in place:

  • Managerial relations
  • Labour relations
  • Compensation and benefits
  • Performance management
  • Training and development
  • Recruitment and selection
  • Company, values, mission, structure and job analysis

Every business will come to a time when they outgrow, the demand of their human capital and they need to look at outsourcing their internal Human Resource department or implementing a HR Department.

The main reasons being, they may be over stretched, no time on a day to day basis, no experience or understanding of what they need, or where to start.

Some of the benefits of an experienced HR team include:

  • Experienced consultants
  • Flexibility
  • Cost effective solutions
  • Advice and guidance at the end of a phone, or email in an understandable manner
  • Prevent businesses getting bogged down by unnecessary bureaucratic work and regulations.

 

What is a HR start up?

One of the most important aspects of any business with employees, is to ensure you are risk aware and understand the employer’s legal requirements, and best practices.
HR is a fundamental part of this strategy, in any company.

Start-ups rely on flexibility in their business culture, and structured HR and recruiting is not the priority, because business owners see them as “culture killers”.

However, businesses that invest in HR, show value in their employees, and business which result in a strong approach to:

  • Hiring employees
  • Developing employees
  • Retaining employees

All of which are the key to a successful business and long-term survival.

Many businesses don’t realise that by embracing the HR start up process, and investing in a HR function, either internally or externally can sustain and build on the business flexible culture that you have created.

Whilst there are a myriad of business need reasons for a HR start up, and reasons it may fail, ignoring the importance of a human resources strategy, in fact 23% of businesses don’t have the right people working on their team.
This doesn’t have to be in house and can be done via outsourcing with flexibility to your business needs.

A HR Start up process, will commence with an audit to understand your business culture, direction, challenges and supportive needs; you will then be provided with an action plan of support and key supporting legislation requirements and practices to invest in both in employee and the business, it can be something as small as the implementation of a Handbook to outline the employee expectations and rights, to supporting a complex Employee matter, that you have not been able to resolve in some time, and don’t know where to turn!
The process will also include learning the business priorities and concerns, and building relationships with executive teams, and followed by other employees, to understand the day to day routines and help engage an insight to the business, and how an effective HR plan will embed and support the business.

The HR Start up action plan can consist of a 30-60-90-day schedule, which helps map out and structure the delegation of responsibility. It will also provide opportunity to periodically communicate with the senior business team, of which feedback can be reviewed on the progress and implementation.

 

Why Is A HR Strategy Important?

Without a focus or HR Strategy in a business for your startup, the business risks allowing negativity and toxic work habits to establish within the working environment.

“Let’s put the Elephant in the room and cover what is not important and what you don’t need”.

  • Jargon! This alienates employees and creates distrust, a HR Function will help by communicating clearly, and concisely, and in person where possible which is vital to active a positive working environment.
  • Going by the book! Your HR start up process doesn’t need to have hard and fast rules, and as part of the HR Start up audit, this will help establish your culture and desirable culture to achieve this in a smooth and supportive approach.

Implementing the HR Solution doesn’t need to have a drag on the business, and should instead organise and strategies the business, through a flexible environment.

The main importance is to allow your business to operate the way it needs to, and greater flexibility is key to this success, through building a HR Solution that meets your individual business needs.

Three of the most important key points any business should strive for, where a HR Start up, can assist:

  • Understanding the Law, understanding the basics of employment Law, Best Practices and employee rights, with confidence.
  • Providing equal pay and benefits, by paying employees on time and correctly will be a key platform for a positive workforce, and utilising a HR function you may want to expand on your employee benefits, and software to streamline the business paperwork and process.
  • Keeping employees safe, with variations in health and safety requirements, and safety record requirements.

With all the excitement in developing a new business, growing a company or simply just running the business daily, it is easy to put off the implementation of policy and Health and Safety requirements.

Whilst in the moment it doesn’t seem important, when you’re securing financials, finding employees and establishing your business, it is imperative you don’t neglect an HR Strategy for your Start-up!

Whilst a business is busy establishing themselves, HR needs are often considered an unnecessary expense, and that start-ups think they are too small to consider or even worry about HR.

However, any business with employees, whether it is one, two or 50 plus staff, you have a responsibility to define the employee roles they play and the value they bring to the business.

Having policies in place for employee benefits, such as a uniform dress code, sickness, holidays, compliance and training and much, much more, will benefit your business success.

Because start-ups are often focused on kicking off the business right, and focused on the output, they fail to notice and invest time in employee performance.

When employees don’t feel valued or recognised for their efforts, engagement will drop, and they may even look to get a new place of work.

Therefore, it is vital to pay attention to your employee’s and build on their values and goals.

 

Getting HR Support for your Start Up

Using outsourced HR Consultants such as ourselves, can help alleviate the pressures for a manageable retainer fee, rather than a salary, and the benefits of outsourcing the HR Start up process, will help defuse a few common challenges such as.

  • Keeping employee morale high, through having a new independent face from once a week, to once a month, creating an environment where employees want to work and help keep employee morale positive
  • Establishing your company policy and procedure needs, and the deliverance of this
  • Embedding and delivering your culture, values and mission
  • Ensuring a strong and efficient recruitment strategy
  • Providing feedback and transparent communication to employees
  • Up-skilling and coaching, through devised and delivered training
  • Dealing with employee problems and concerns through an devised employee relation process, and performance strategy.

Is your business fully established with the above? If not and you would like to find out more about how we help, then you can contact us on 0330 400 5490 or visit our HR support page.

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