When you are the founder of the start-up, you have no roles to perform, aside from being the CEO to doing the basics. You have to be a marketer, IT head and even customer care at times.

Managing a start-up is quite perilous and chaotic both. Things become a little flexible for you only when the right hires help you at work. Every startup’s early stage employees work as the founding members of the company. Employees should be retained with the utmost attention as they decide the future of your company.

One has to remember that “People are an organization’s most valuable asset and the key to its success.” If you want your start-up to grow to make sure you select the right staff.

Employees are the only asset that will help you to get a sustainable competitive advantage. All other resources are shared among the competitors. Even though you feel you will be good at hiring and firing and maintaining your employees, it is always suggested to hire Human resources professionals to do so. They have many critical benefits attached to them. Have your HR work with your interns, as well.

Keeping your professionals satisfied, updated and productive all the time is a complex task, and only a separate HR team can accomplish this pain point for you.

Here are the seven benefits start-ups get from HR teams in their early stages of a start-up.

1) Right talent.

HR professionals are not just responsible for hiring employees for your start-up. Hiring the right set of employees for a start-up is very important. Being a founder if you believe you can handle the hiring you still cannot spend your complete focus on it. “Resources are hired to give results.”

Pooling a large number of candidates, scanning the resume, picking the right applicants and training the HR team can easily manage everything.  

2) Works like a therapist.

In every start-up, the workload is comparatively higher. People have to work beyond their working hours with complete dedication. Even the monetary remuneration rewarded to the employees and other perks are also relatively less than established companies. There are chances that an employee feels overloaded in a start-up. When a new hire is retained, this is the time when HR professionals step in and work as a therapist and boost the morale of the employees. HR professionals also manage complaints and queries as well.

3) Policy, process, and performance.

Documentation in every new-hire is essential. As a co-founder, you can hire employees, but there are chances that you can leave the documentation for some other day.

HR team manages the database of the employees which is essential. HR is the one that is mainly responsible for deciding organizational culture as well. They make sure every employee feels valued and follow a bottom-up approach. Process (how to complete tasks) and their performance review is all managed by HR. HR also decides if an ongoing employee needs to be trained well, as it is vital for a start-up.

4) Legal compliances.

As a start-up’s co-founder, you will always be occupied. So hiring HR professionals will be beneficial as they make sure about legal compliances that your start-up has to follow.

HR team can look into if the start-up is following labor laws and regulations. Non-compliance with the regulations can severely damage the reputation of a building start-up. They keep track of the new rules and regulations and make sure the start-up strictly follows it and avoid any legal liabilities.

5) Set up employee reviews.

Continuous feedback and reviews from the employee’s side are also valuable. HR works as a link between the managerial level and employees. Reviews and feedbacks help in constant improvement in the work process.  Feedbacks also helps to bring in coordination and smoothness in the working of the start-up. Allowing and asking for feedback is a must as it motivates the employee to give away ideas and constructive criticism which can shape the start-up.

6) Reduces remuneration costs.

In an early-stage start-up where co-founders generally do not have time. HR team keeps track of an employee’s leaves, other bonuses, and economic benefits.

HR hires talent in an optimized way where they try to reduce the remuneration cost. They use techniques like cross-training employees, reducing employee turnover and reviewing levels of compensation. As we all know start-ups function on low budgets. And hiring an HR will be helpful for that.

It is said that with HR technology by the year 2021, firms will save up to 600 million dollars.

7) HR builds a corporate image.

HR is the one who communicates about your start-up with your potential employees. HR builds your organization’s culture; they make sure that employees are satisfied. They create a brand in such a way that there is a positive word of mouth via your employees.  HR conducts sessions to make sure your employees are satisfied by the startup’s performances.

As per research published in the Journal of South African business general, it is said that human resource professionals can build a corporate image which in turn helps the company to be profitable.

Final words.

We often underestimate the HR department, but they have more than just conducting interviews. Having a working HR department is very important especially for start-ups.

They not only hire the right talent which are founding stones of your start-up. But they also make sure that you build the right organizational culture. HR Department even takes care of legal compliances to be followed by your start-up. Even if you are an extremely talented founder, you can never multi-task to the level of an HR professional.

“HR professionals are a must for every early infant stage startups as they will help you build into the right organization. The value of a business is a function of how well the human capital manages the financial capital and intellectual capital. You’d better get the human capital part right.” ― Dave Bookbinder.

Jasika Adams

Jasika Adams is a writer with a passion for writing on emerging technologies in the areas of human resources, startups and business management. She is a talent acquisition manager currently associated with Index Time Clock. In her free time, she loves to play with her kids and read mystery books.