What To Know About HR for Your Startup

What To Know About HR for Your Startup

Unfortunately, human resources isn’t a one-size-fits-all guide and, with the inclusion of hybrid and remote workforces, the expectations and challenges of an HR department are constantly changing. However, there are a few key things that all HR departments should be aware of, particularly if they are part of a startup business.


The HR team at any company is responsible for managing the employee lifestyle, such as recruiting and training, and administering employee benefits. While the responsibilities may vary based on the company size, introducing HR at a startup in the early stages is the best way to ensure you can hire new employees and train them to your standard quickly, which can only be a benefit to your business.

If you want to hire in-house, the first role you will be looking for is likely to be an HR Manager. The ideal candidate for this role will be able to evaluate employee programs and reduce staff turnover by ensuring that onboarding and training are carried out effectively. The bigger your business, the bigger your HR department is likely to be but you don’t always need to hire in-house.

In-house or Outsourced?

When setting up HR, you should consider the number of employees you will need to support. As a startup, you are likely to be a small workforce which may make accessing senior-level HR talent in-house an issue due to budget.

Instead, many startups look to outsource their HR services, meaning that a separate company will take over the HR functions including risk management and payroll administration. As such, opting for human resource management systems may be the most cost-effective option for your startup as you only pay for the HR functions that you need and use rather than hiring in-house staff who must be paid a guaranteed wage and benefits.

Make sure to browse through different vendors and compare their services to find the best fit for your startup’s specific needs. Having a strong team of HR consultants overlook your company’s HR processes can also help ensure compliance with laws and regulations, as well as provide guidance in creating a positive company culture.

Employee Handbook

An employee handbook should be one of your company’s most important documents, but at a startup level, it can often become a lower priority. A basic handbook can be created when you have around 25 employees and documents workplace rules and policies as well as the company culture. Having guidelines in place in the form of an employee handbook ensures that your employees have the structure they need to work better, from implementing flexible hours to the rules around annual leave and defining the company values. While handbooks aren’t a legal requirement, they are an effective way to distribute information and the context of your startup to your employees.


Leave a reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.