People Management & HR

Unique HR Issues Faced by Startups

  • 3 min Read
  • February 18, 2019

Author

Escalon

Table of Contents

As a startup, you face different challenges than more established companies face.

Many of these challenges have to do with staffing and human resources. Let’s look at some unique HR issues faced by startups.

Lack of Management Buy-In

Sometimes startup management teams don’t care enough about HR policies and ignore them. They go so far as to think HR is only about hiring when it’s about so much more.

Make sure your leadership team buys in to your policies. Your human resources team will set your company culture as well as hire, onboard, handle benefits, terminate employees, and create your employee handbook.

You want everyone on the same page, so your human resources policies succeed.

Forgetting to Document

You’re busy, and most of your team is, too. As a young startup on the move, it can be hard to remember to document policy, processes, meeting minutes, conflicts, and more.

The problem with this is you might need this documentation down the road. Make a commitment to document all issues concerning human resources.

Hiring is Challenging

One of the biggest HR challenges for any startup is hiring. You’ll find that most of your early employees come through word of mouth or acquaintances. This won’t always be the process.

Hiring gets infinitely more complicated as you’re scaling your business and adding staff.

If you are working with an HR team, either in-house or outsourced, they can help you with your recruiting, interviewing, hiring, onboarding and training.

An experienced HR team makes sure you have the right processes in place for hiring the best talent.

Terminating Inappropriately

Yes, most of your new hires will turn out to be great. But for the 10 that are, you’ll likely find one that isn’t.

If one of your team members isn’t what you expected, you might you need to terminate their employment.

This is an HR issue, and you will have to face it sooner than later.

You want policies in place to measure performance, document issues, and terminate an employee.

Failing to Train Staff

If you don’t train your staff appropriately in the beginning and on an on-going basis, you’re going to run into trouble.

An HR team makes sure your startup is committed to training and a path to employee growth. They’ll take care of this for you, so it’s done in a timely manner and done well.
Training helps develop your employees for the long-term and ultimately helps you with employee retention because your staff is happier.

Avoid the HR issue of untrained staff by having training procedures and policies in place and implementing them for employee development. Cross training employees is also a good idea.

Final Thoughts

We’ve looked at the unique HR issues your startup may face. As you move forward and begin to grow, keep these in mind so you avoid costly mistakes .

What’s the bottom line? You want to have a solid HR team and strategy in place before you begin hiring staff. It’s vital to the success of your startup.

Put the development of a comprehensive HR policy at the top of your list so you are prepared for the future.

Are you a new startup ready to succeed? Are you looking to get your new business off the ground and watch it rise to success? We are here for you. We can help answer your questions and guide you through the process. Outsource your HR duties, finances, payroll and more to us. Contact Escalon today to get started.

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.

  • Quality and consistency

    Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.

  • Scalability and Flexibility

    Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.

Contact Us Today!

Tap into the latest insights from experts in your industry

Taxes

Your SMB’s Compliance Calendar: Key Deadlines You Can’t Miss in 2025 

Running a small or midsize business comes with enough challenges – compliance shouldn’t be one of them. Staying ahead of...

Read More
Accounting & Finance

Cash Flow Strategies for Life Sciences Companies: How to Stay Liquid in a Capital-Intensive Industry

In the fast-paced world of life sciences, innovation is king. But staying ahead of the curve often comes with hefty...

Read More
Accounting & Finance

CFO vs Controller: How Startups Can Benefit from Both

CFO vs Controller: How Startups Can Benefit from Both  As companies grow, managing finances and accounting becomes increasingly important. A...

Read More
Small Businesses

The ROI of Outsourcing Business Services: How to Measure Your Investment’s Impact 

The ROI of Outsourcing Business Services: How to Measure Your Investment’s Impact  In a world where every dollar must count,...

Read More
People Management & HR

2025 Employment Law Updates: What to Know

As we step into 2025, businesses across the country face several important updates in labor laws and employee benefits. Staying...

Read More
Startups

5 Signs Your Startup Needs an Outsourced CFO  

5 Signs Your Startup Needs an Outsourced CFO   Startups often operate with lean teams, but as they grow, financial complexity...

Read More
Leadership & Growth

CG Startups: How to Keep Costs Low While Scaling Operations 

Consumer Goods Startups: How to Keep Costs Low While Scaling Operations  Scaling a consumer goods startup requires a careful balancing...

Read More
Press Releases

Escalon Expands Its Reach: Full Stack Finance and Early Growth Join Forces with Industry Leader 

Escalon Expands Its Reach: Full Stack Finance and Early Growth Join Forces with Industry Leader  In a strategic move that...

Read More
Taxes

Delaware Annual Review: What Series A-C Startups Must Know to Stay Compliant 

Delaware Annual Review: What Series A-C Startups Must Know to Stay Compliant  For startups incorporated in Delaware, staying compliant is...

Read More