Get expert advice on every topic you need as a small business owner, from the ideation stage to your eventual exit. Our articles, quick tips, infographics and how-to guides can offer entrepreneurs the most up-to-date information they need to flourish.

Subscribe to our blog

5 reasons why your startup needs human resources

Posted by Kanika Sinha

April 10, 2017

Historically, HR has been the catch-all department for hiring, payroll, health insurance and other administrative tasks. It was seen as the way to get payroll moving and to handle problems.

In reality, HR is much more than this if it operates effectively. It’s about creating a company culture and enhancing the worker experience in addition to the administrative work.

Here are five reasons why your startup needs human resources to succeed and thrive.

#1: HR saves you money

By having a human resources department or outsourcing your HR needs, you can save your company money.

First, an HR department can negotiate lower rates on healthcare. HR also stays abreast of local and national laws so you don’t get into trouble when it comes to your employees.

HR can also institute hiring and training programs that increase employee happiness and productivity. This means you have less turnover and don’t have to spend money multiple times on the hiring process.

#2: HR helps build your brand

An effective human resources team can help you create and maintain a positive work culture that helps solidify your brand.

HR should be thoroughly versed in your business goals and objectives. They should have great knowledge of your mission and your vision.

Your HR team is then charged with promoting your mission and your goals with your employees. They can help with employee buy-in.

When your employees embrace your mission and your purpose, they’ll not only be happier, but they’ll convey that contentment in their dealings with your customers.

#3: HR helps you hire right

Hiring and training is a costly expense, and as a startup owner, it isn’t something you have a lot of time for.

By letting HR handle the recruiting and hiring, you not only free up your time, but you let the experts focus on the recruiting.

You want to hire right the first time as your startup team must all be on the same page – growing your business. You don't want to continually be looking for new employees because you didn't hire the right person the first time.

Talk to us about how our outsourced business services can help your startup develop strategic HR solutions.

HR can help you hire effectively and then move on to training your new employee. HR will establish an orientation and training process to on-board employees and help create loyal and industrious team members.

#4: HR improves employee retention

Productive employees are usually happy and engaged. They are the best type of team members for your startup. But, keeping them this way takes time – something you may have little of.

This is where HR comes in. They can handle all conflicts and challenges that arise.

HR staff can identify and resolve employee issues while helping to improve employee engagement and satisfaction.

Additionally, HR can help improve the quality of the work environment by instituting programs and policies such as incentives, rewards, raises, promos, vacation time, social functions and team building exercises.

#5: HR handles administrative functions

Now we come to the traditional functions of HR – the paperwork.

Your HR staff can again free up your time by handling employee files, payroll, health insurance, retirement info, forms and compliance issues.

They can also take care of performance reviews and issues such as state and federal guidelines and regulations.

Want more?

Since 2006, Escalon has helped thousands of startups lower their payroll costs and bring in lasting value with our outsourced HR solutions — and we can help yours too. Talk to an expert today.


Kanika Sinha
Kanika Sinha

Kanika is an enthusiastic content writer who craves to push the boundaries and explore uncharted territories. With her exceptional writing skills and in-depth knowledge of business-to-business dynamics, she creates compelling narratives that help businesses achieve tangible ROI. When not hunched over the keyboard, you can find her sweating it out in the gym, or indulging in a marathon of adorable movies with her young son.

We provide you with essential business services so you can focus on growth.