There are various aspects that one needs to focus on while building a startup from finances to collecting resources, from revenue, and marketing to customer support.
However, there is one important part that gets avoided due to insufficient knowledge or maybe ignorance, and that is Human Resource Management (HRM).
Having a well-structured team working for your vision and their development is as crucial as other factors in a startup. They support establishing a brand image in the market and if we don’t have a proper HR strategy then it may lead to the failure of a company.
What is a Human Resource Management (HRM)?
It is the process of searching, keeping, and blooming the right people to work at your company and hence, is the most important and risky task. It assists the organization in achieving its missions efficiently.
We will understand this much better once we would get to know the requirement of Human Resources in a startup.
The Necessity of HRM in a Startup
Startups work in a very dynamic and volatile environment where tons of decisions are to be taken daily. Due to this entrepreneurs usually don’t pay much attention to rules and regulations which might become a reason for the failure of their startups.
A good company always has a proper team with talented and hard-working employees. People management is what could keep them motivated and honest to work for your company.
It unleashes the potential of the workers that will align with your future organizational goals.
Don’t forget that, “People are your greatest asset”
Human resource management takes care of hiring the right talent for their respective work profile and polishing their capabilities.
They help eliminate toxic work culture and promote discipline among the workers. They are considered the bridge between the top management and the employees.
Therefore, building a proper Human Resources strategy is equally or more important if you want to stay in the business for the long run.
Reasons to Have a Strong HRM in Your Startup
It works as a backbone and will help you in establishing your startup as you want to. A few reasons are given below for having strong Human Resource Management (HRM) in your startup.
1. Act as a guide to understanding the employment roles
There are various kinds of labor laws, employment laws, or company acts that work for the betterment of the employee’s working conditions.
Apart from that, federal and central laws are also there to protect workers’ rights. Therefore, it is crucial to understand them and comply with them.
Human Resource Management(HRM) is often the face of the company. When it is well structured and works in harmony, it displays a positive image of the company.
2. Build company’s image
Every startup has its own culture and a strong HRM that helps in cultivating. It also shows that a particular company is serious about its vision as it is taking good care of its people.
In India, companies like Wipro, and TATA are famous for their better treatment of their working staff, and thus, every individual wants to work there or do business with them.
3. Aids in keeping employees safe and motivated
Hiring is a time-consuming process, no doubt about that but if any skilled employee leaves the company then it is a great loss to a startup.
Therefore, Human Resource Management(HRM) provides them with safety and employee benefits like sick leave, paid vacation, etc., to boost their morale & creativity.
Sometimes, they don’t feel like working due to some internal problems that occur in an organization. The HR department should address their concern and solve them.
4. Need to create a strategic Human Resource Planning
Strategic human resource planning creates a systematic understanding of employees’ current needs as well as predicts their future needs. It enables hiring people from different sources who needs training, promotion, or paid leave.
HRM needs to build a strategy to understand the current requirement of employees in an organization for instance, who is resigning and with whom they can replace.
5. The hiring process needs a proper long time
It is a hectic job and sometimes confusing too. Getting the right people for the right job is a very time taking process as it involves an intense process of recruitment and selection.
After that proper training is given to them to ensure that a company could get the best out of them. It takes months to hire someone and get them to agree to work with you, especially in a startup.
LinkedIn is a well-known platform to look for new talents, and boost your hiring process.
The Role of the HRM in a Startup
There are five significant roles of HRM to ensure a smooth running of an enterprise that is listed below:
1. Policy formulation
The head of an HR team helps in the formulation of policies on wages, appraisals, personnel records., etc.
They maintain a tight grip on the working environment by implementing these policies in a startup. These regulations are made to avoid discrimination and confusion among the employees working together.
Every organization can make its own rules according to its work culture but it should always be benevolent to its people.
2. Advisory role
It has different roles in a startup in terms of giving advice. They have not limited only to forming policies but to look after their employees and the company.
- Human resource management advice them on creating job titles without any discrimination
- They provide advice to protect a startup from lawsuits and defamation charges
- They also help in encountering new issues and provide a solution to eliminating them
3. Linking pin role
Human resource management is a link between top management and their workers. They are responsible to convey their important matters in a very systematic role.
It maintains good industrial relations between them and tries to maintain peace and harmony.
4. Representative role
They are the spokesperson of the top management and communicate management policies and decisions to the workers.
It also acts as a mediator when conflict arises between superiors, subordinates, or managers. They play the role of representatives of the company to the outside world too.
5. Leadership role
A well-versed HRM lead and guide their workers to work efficiently while maintaining the decorum of the company. They also influence employees’ behavior through various techniques of leadership.
They are in charge of hiring and firing people from their company and sometimes acts as a welfare officer.
Bottom-line
The role of HRM is tremendous in creating success for any startup. The best companies indeed are those which have HR as an executive position on the seat at the table and believe that people are assets to them.
Therefore, for startups, it’s kind of mandatory to have them to ensure success. It doesn’t matter whether it is a small team or a huge one.
What matters the most is that they must know their duties properly and are capable individuals with certain qualities.
Let’s end with this thoughtful quote;
“You don’t build a business, you build people and then people build the business”.
Excellent. Thank you ma’am for such an informative write up. Wish you all the best.
Thank you Ma’am for reading my article and sharing your valuable feedback.