Startups are often entities developed out of trial and error. However, without a proper strategy up and running, you are bound to encounter a lot of errors. The regulatory compliance, employee retention, hiring challenges and tons of other unavoidable necessities just make things worse. An HR can tremendously benefit your startup and help it from choking. Most small businesses consider them to be people required after you scale up, but that’s far from reality. You need them the most during your kickstart period. How? Keep reading.
According to the stats, 5,509 startups were born in 2019 while 3,061 were founded in 2020, meaning around 8-15 startups on average were established every single day! However, the question is as to how many of these see the light of the day and manage to survive in this highly competitive world? The numbers will shock you!
A report by IBM showed 90% of startups failing within 5 years of their inception in India. Moreover, 21.5% of these fail within the first year itself. Concerning, right?
On your hunt to find a cure for this business epidemic, it is vital to realize and imbibe the role of HR in your organization. A human resource is skilled to bring you out of this maze and push your startup towards a better survival rate. HRs recruit top-notch employees to your company’s table, allowing you to leverage their potential and get out of the volatile phase.
Companies who have a strong grip in the HR arena gain an upper hand as they are seen as organizations valuing their employees. These eventually tick 3 vital requirements-
_ Hiring skilled candidates
_ Nurturing employees
_ Retaining top-performing employees
An unstructured HR and recruiting process can negatively impact your business. It paves way for toxic work environments, creates confusion, fosters more harm than good and affects employee morale and retention. Recruitment software can help you to structure the process & reduce the risk.
HR is more of a strategic business partner and a people person. The way they tackle the challenges of these people highly affects a company’s success. A non-existent HR department can rob your organization of its scaleup ability.
Here are 5 ways how HRs can help grow your company and why having them on your team is of utmost importance:
Hiring the right fit
For startups, employees are of prime importance as they hold prime roles in shaping its future. You want to make sure you get the right people on board. HR is the first point of contact for any candidate. Your company’s brand gets publicized through these folks. With the ongoing talent war for securing the best from the talent pool, HRs not only need to provide an attractive compensation package to the candidates but also draft strategies to lure them to work for you.
Sorting the best from the lot is their top skill and they are aware of the skills and capabilities to look out for in a potential employee. A right fit can drive your company to the peak of success as their work gets aligned to the organization’s vision.
Creating the desired work culture
Culture defines the final outcome of an action shared with the goals of the company. The correct blend of values created and helped to adapt at workplaces can yield brilliant results. A shared purpose that inspires, morals that align with behavior and a work environment that induces employees to think out of the box and contribute effectively to the company are the responsibilities of HR. This culture and goal elucidation leads to the right work execution.
Primarily, they promote a culture of extreme ownership and accountability, giving scope to the employees to bring positive changes to the organization.
The vital part of engaging an employee is the right form of communication. There is a higher chance of employees accomplishing the overall objectives and goals if they are aware of the direction the company is heading in, their role in it and the progress achieved until now with their contribution. The right engagement strategies can help retain the top talent.
With the advent of the gig economy and Gen Z eloping to that side of the world, it has become tougher than ever to retain employees and offer them enough to stay. HRs make this easier by adopting ways to keep them attracted to the company.
Maintaining the balance between higher and lower management
Often times, CEOs don’t directly contact their employees for work purposes. HRs form a connecting link between them and their workers.
Think of HRs as the clutch of a car. It engages with the wheels and the engine to allow the seamless movement of the vehicle. Here, wheels become the employees while the engine is the head of the company. For a smooth ride, it is vital for both of them to stay on the same lines and function together accordingly.
Similarly, HRs present themselves as the entity that keeps the employees in check while maintaining a balance between the two.
Legal protection and policy creation
Small businesses can run into trouble as they are new in the market and not aware of the complexities surrounding legal matters. An HR ensures that your company complies with the regulations and stays protected. Wrongful lawsuits can bankrupt startups, robbing them of their financial sources. A good HR support system can greatly reduce the risk of such incidents.
Moreover, a structured HR department also calls for the creation of a policy guidebook. These provide a window for employees to access the information they need regarding the company’s leave policies, paid leave management, internet policies, dress codes, discipline, holidays, and more.
A Human Resource echoes the meaning of its name in the essence of its work. While some startups consider HRs to be an additional money-eater in their small business, these employees can actually become the driving force to take your organization from good to great.
The world is evolving and so should your startup when it comes to HR. These people can help your business give the much-needed boost while solving challenges and making the required changes.
Establishing a business is not easy, we get it, but placing a strong HR section in place immensely helps in streamlining the job. So, have you understood the importance of HRs and the potential they hold for growing your startup? Start building your HR department today!