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Things startup owners need to know about HR

Posted by Kanika Sinha

October 10, 2016

Human resources (HR) is important to your startup.

Why? The human resources or personnel function at your business is much more than handling payroll or health insurance.

Your human resources staff can play a crucial role in taking care of your employees, improving morale and handling conflict.

Because we strongly believe in the impact human resources can play in your company, we look at things startup owners need to know about HR.

The culture is created

 Your HR department can spearhead the development of your company culture, which should start from day one.

Your company culture can make or break your startup, so you want to be intentional about it.

The HR arena is the best place to define, present and further your culture, creating consistency throughout your startup.

Human resources can also help ensure your staff is staying true to your mission, vision and core values.

Hiring is efficient

Who you hire from day one matters a great deal for your startup. To help you find the right mix of employees, a good human resources leader is vital.

You want someone to take charge of the hiring and look for people who not only believe in your mission and vision but can take your startup to the next level.

To build a successful business, you have to understand your target market. To that end, you have to hire the right people who can attract and retain your customer base.

Orientation and training count

Have you thought about how you’ll on-board and train new employees?

If not, this is definitely something new startup owners should plan for.

You want to leverage your newly hired talent by providing them with proper and thorough training. Employees who are trained well are more likely to stick around and be loyal employees for a long time.

Every member of your startup team must know what their role is, how they are to fulfill it, what’s expected of them and why they’re doing it.

This is where your human resources staff member or team steps in.

When you have a highly-trained, highly-informed workforce, you maximize productivity at your startup and ensure that everything is getting done accurately and on time.

Talk to us about how our outsourced business services can help your startup improve the scalability and flexibility of recruitment.

Budget costs are maintained

You can count on human resources to watch your budget by curbing the management costs associated with running a new business.

They can negotiate better rates for health care coverage. They can help you set realistic salaries and wages and monitor employee reviews and raises.

Helping you manage your budget when it comes to employee items is a helpful HR task.

The rules are managed

An invaluable part of human resources staff is that they take care of the rules and regulations. This includes hiring, work hours, termination and much more.

They are the buffer between your employees and your company.

HR staff can take care of hiring and firing while staying compliant with the law and avoiding costly, messy lawsuits.

By having an HR staff in place, you ensure that someone is handling performance and job-related issues for you. They are negotiating conflict while documenting everything.

Not only are they handling the necessary hiring and firing tasks, but they act as a mediator when there is conflict between manager and team member or several team members.

This is anothher important task for your startup.

Final thoughts

Perhaps you’ve been reading this article, and you’re getting excited about hiring a human resources professional for your startup team.

But, what if hiring someone else just isn’t in your budget right now?

Well, there is another answer for your burgeoning startup. If investing in an HR professional just isn’t in your budget right now, you can consider outsourcing.

Outsourcing is an untapped market for your startup, and it is very viable.

You can outsource your human resources needs to a third-party professional. Expect this person to have extensive human resources expertise. Expect them to be able to help you take the right steps to move forward with HR.

You’ll find they are less costly than hiring an expensive full-time HR professional, and that they know exactly how to help.

Want more?

Since 2006, Escalon has helped thousands of startups lower their payroll costs and bring in lasting value with our outsourced HR solutions. 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.

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