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Unique HR Issues Faced by Startups

Posted by Neha De

February 18, 2019

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.


Neha De
Neha De

Neha De is a writer and editor with more than 13 years of experience. She has worked on a variety of genres and platforms, including books, magazine articles, blog posts and website copy. She is passionate about producing clear and concise content that is engaging and informative. In her spare time, Neha enjoys dancing, running and spending time with her family.

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