HR/People in Start-Ups
You’ve worked hard to build your business, and it’s likely that you can attribute your success to being uniquely you. As you are growing the team members, one of your goals will be to keep what makes you special whilst expanding your capacity and improving your offerings.
You may have seen that the term “People Department/Team” is now being used much more than HR. This is because the world of HR is changing, it should no longer be a “back office” function or cost-centre that delivers little value. People/HR departments are now seen as a business function that enables growth, education, efficiency and productivity.
All businesses attempting to grow will encounter pains, there will be hires that go wrong, some things you try won’t work out and there will be mistakes along the way. In this article, we outline when you should start to think about HR/People processes and policies to reduce the painful moments you have along your journey.
There’s no better time than now
Honestly, it can be a bit of a minefield understanding when is best to start thinking about HR/People for your business, but in reality, it’s better to start early than wait for too long. Before you even consider spending money on a full-time employee, you can start implementing some small things that will make your life a lot easier:
Define the attitudes you need - Attitude is the single biggest indicator of success in a job, it’s why hiring people you know is often easier, you know them and you know how they will react, but as you grow you can’t only rely on your network.
Policies, what policies? - Your employees will need some detail on their rights but this can sound boring, and complicated, so don’t make them like that. Keep your holiday, sickness, and other policies as simple as possible. Keep your policy documents simple, and make them available online so you can hyperlink them to local legislation. This way if legislation changes you won’t need to write new policies. Use Acas.org.uk for all your basic templates.
Make it fun - People/HR doesn’t have to be dull, yes there are serious elements to HR but more often than not, a snappy semi-humorous standard can do the hard work for you (see NZ All Blacks “Don’t be a d*ck”). This way, you don’t need one person to be the moderator, you can use the entire business to push the standards you expect from each other. Make sure all in your company know of your standards, and ask them to always uphold your standards.
Make use of SME software - There’s no need to spend big money on HR software yet. If you are resourceful you might be able to get away with free software but it comes with challenges around data and eventual migration to a larger platform.
Get an HR/People Consultant you trust - Before you need to employ someone on a full-time basis, make sure you have a consultant you can speak to regarding any Employment Relations or contractual questions. Find someone who can also advise you on how best to grow your business.
Finally, each business is individual, there are no standards that tell you when the best time to hire someone full-time is but your HR/People Consultant should be able to advise you on when the right time is for you to take the plunge, and how to pick the right person for your journey.
Luke Moss
Head of People - Start-Up Experience