HR Challenges Faced By Start Ups
The business world is fueled by the startup companies. If initiated and maintained properly, startups can generate a steady flow of revenue and can pose as a strong competitor to the existing businesses. But in order to run a successful startup the major challenge is the acquisition and retention of the effective talents under the HR segment which keeps the business afloat. While some might assume that the channeling of funds is the biggest challenge for a startup initiative, the major setbacks come in the HR segment. Hence we list down the major HR challenges faced by startup companies.
- As per the conventional notion, HR policies have been considered as a characteristic of the corporate giants. This fact is no longer true in the current corporate structure. A well structured HR policy framework protects the business from hindrances in revenue generation and growth. Also while looking for talent; a well defined HR policy creates a positive brand image in front of the candidates.
- Before diving in to the serious task of hiring, the in depth understanding the size, structure and nature of business is crucial to recruit the right people. Employment agencies can come handy in this regard. They can provide consulting services or perform the recruitment process based on the requirement.
- Keeping records or book keeping putting it precisely, is crucial and is often neglected by many startups for the lack of structure. It is very important to understand that keeping the company related information in a well documented digital format is vital for the sudden crisis management and dealing various business related issues and concerns. It also helps to a great extent in the long run.
- Another significant HR challenge is not hiring the correct people and then the inability to fire the wrong ones. As a startup, one need to understand that there is very little scope of burden in terms of cost and malpractices within the work environment as it also effects the other employees. Clear understanding the employment options is important and if at all a negative hiring takes place, it better to lose the dead weight rather than taking the operational cost burden.
- An insight in to the employment laws and employee rights is essential even before the HR policies are laid. This contributes towards successful hiring and management of a positive workforce. Running in to lawsuits and legal mitigation is worst possible scenario for a startup as it directly impacts the brand image and puts up a question on the credibility.
- After recruitment, most start ups fail to provide a clear direction to the employees in terms of development in relation to the individual career growth. This scenario triggers the lack of trust and conflicting attitude of the employees.
Lastly, retention of the workforce is also crucial on HR grounds. In
case of startup, fresh recruits need to be trained and made aware of the
processes from scratch. This requires considerable amount of time and resource
adding to the cost. If that employee plans to leave in the middle or at the end
of the training processes, the company suffers in terms of costs and knowledge
hamper. Sustaining hired professionals is a key challenge for the HR
professionals of startups.
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