Start-Ups are built around a great idea. It can be a new service, a revolutionary product or a great cost management tool. They put the idea into the center. They usually forget about the team, because they are all so enthusiastic about bringing the BIG THING to the market. However, the founders should start thinking about the fundamental HR Management processes and procedures before it is too late to bring a significant change that matters. They have to split responsibilities among team members and bring some discipline. These are the essential components of each success. They can also be ingredients of the failure, but they usually help to avoid one. Most start-ups have the sustainability issue, and Human Resources can be a cure.
Most start-ups are not stable organizations. Their operation is not based on formal processes and procedures. The founders act as an internal Wikipedia that answers all relevant questions. They usually lack a clear business vision, and they have no clarity how and when the product should go live. Usually, there are two competing ideas – DO IT NOW and WHEN THE PRODUCT IS READY. No one can answer this question when decision-making process is put in place, and no one understands who is the guy in power.
The team grows exponentially, and founders are overloaded by requests to make important decisions. They have no time to build the valuable opinion and judge proposals fairly. They tend to make a decision based on the personality of the employee who brings the proposal on the table. They miss clear roles and responsibilities in the team that could make lives of everyone easier. This is a classic story and a key reason to introduce at least the core set of the HR Management practices and procedures.
An ambiguous start-up needs to grow fast. It needs to hire new talents, and they need to go through many job interviews. Even the new organization needs to set up the basics of the corporate culture. It has to differentiate itself from others. That is another task for Human Resources in a start-up.
Most founders do not want to introduce Human Resources function from the beginning. They are worried to lose the speed and agility of the organization. However, they can introduce the limited scope of the HR Management Practices.
The modern HR Management can be a great help for the start-up organization. Bringing the clear roles and responsibilities can make the start-up quicker and agiler. Founders and leaders can focus on shaping the product; they do not have to spend time splitting tasks and checking the progress of important non-value added tasks.
The HR Manager in the team can introduce the new recruitment and staffing process that ensures the high performance. She can also find best talents across the world, and can bring them to the office. The team does not suffer from lack of resources; they are available at the moment when needed.
It is not true that the start-up business does not need any Human Resources. It is necessary and required; the organization deserves it.