HR Evolution in a Startup "THE STORY"
Elena Tench MSc., SPHRi., CCHt., CPC., NLP Prac.
HR Function Set Up From the Ground Up for Startups & Scaleups | HR Transformation | Founder | Mentor | Coach | Head of HR | HR Director | Author of “DIY Guides for Job Seekers” | Recruitment & Executive Search | FinTech
Did you know that 55% of startups handle employment matters themselves without a proper HR department or personnel simply by delegating it to employees with little to no training or knowledge in the field or having it run by founders themselves.
More than 50% of startup business founders admit that they lack confidence, knowledge and desire in HR management (understandably so they have more important things to think of). The research found that HR matters are frequently assigned to office managers, admin staff, or even finance and in some instances PRO personnel—roles typically unfit for such tasks and in all honesty, they have their own job to do.
Another reason is that far too many startup founders consider HR as a non-vital function, so it is natural to neglect it until it blows up in their faces.
For many startups, HR represents a paper filing function that often looks like bits and pieces of random documents without any structure, all manual, no onboarding processes, and needless to say, there haven’t been thoughts on performance metrics or L&D initiatives or anything else besides basics. A startup has other priorities, and I get it. At this stage you need to sell and generate profits to cover expenses. The balance sheet!
Startup founders are typically juggling multiple balls, prioritising profitability, marketing, and sales, at the end of the day, this is what pays the bills and salaries and what generates profit, the growth stage.
As the company grows and crosses the 20 + employees mark and more people join, things start piling up, and people constantly want something from a person who takes care of HR things. The person gets annoyed and quits unless it is a founder himself/herself. ?New joiners feel that they stepped into chaos, and existing employees start leaving for greener pastures, attrition is high. The tension rises. The first thoughts of hiring somebody to handle this mess come into the picture.
If the above sounds exactly like how human resources are being handled right now in your company, then know that you are not alone and read on.
As the startup grows into the next phase, where things are a little more settled and profits are more achievable and stable, this is the crucial time when normally startups realize that it is the time to prioritize HR and ensure that the right tools are there to support business and talent and also attract it. Building a company reputation and winning the "best employer to work for" becomes a little more of the priority (wink wink).
Founders realize that you have to keep people happy, so they stop leaving and that people are critical to the sustainability, success, and growth of the business and while managing people is not an easy task, it is the right thing to do. Priority over to HR- finally. Roll the drums!
What usually happens next is that the startup founder hires someone professional to properly set up and manage the HR function. Usually, the best person for the task is a senior HR professional with experience in setting up HR functions in startups. That would be the right choice, but the budgetary considerations might still be there, being a startup, which would mean this person would come at a very costly monthly overhead.
Often a company settles for a less experienced but also less costly choice- HR Admin or Manager without A to Z HR startup experience. And this might work out just splendidly, there are plenty of magical unicorns out there, but it might also be a failure, an upgraded version of the HR chaos or exactly what the company has been doing all along—a messy and “bits and pieces” HR process run by junior HR professionals. The company is back to square one.
Running a business without proper HR processes can hinder growth and sustainability needless to say compliance and legal matters are often at stake as well as the company’s reputation and brand name.
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Setting up an HR function without the involvement of a senior HR professional is tricky at large, but does it have to be that expensive and do companies need them full-time while still being relatively small in size? Where is the middle ground?
The answer is of course the HRnow A to Z HR set-up solutions :) #insertsalespitch #readon
What I offer is:
Choice: 3 solutions to choose from: Basic, Comprehensive and Premium plus add-ons to complement when and if needed. I won't sell you things you don't need I promise.
Speed: We can get your HR Up and Running in as little as 2 weeks, of course, a collaborative effort from your side will be required. The average progression of the HR set-up is 3 to 6 months, depending on the complexity. Quite a different time line right?
Cost Efficiency: If you want to do things right you need a Senior Expert to set up your HR, these are costly, AED 40k to AED 70k a month, and on average it will take them 3 to 6 months to set things up on a good basic level. What if I tell you we you can have this at one-third of the price?
Expertise: I have designed a product that covers all HR aspects A to Z. You get up to 250+ resources (you don't need to use them all at once, but you have them if/when you need them) and you receive a complete database and manuals and training on how to use them.
Training: I conduct all my training in person, we go step by step and I make sure your team member knows the ropes in and out. I also provide you with literally step-by-step process manuals, so even if you engage a non-HR team member to run the function they will be able to do so easily.
Post Implementation Support: In Scandinavia, we don't leave until we are hundred percent sure you are fine and capable to manage things on your own. Well first of all we are annoying perfectionists and plus we care about our reputation. I offer free hours of post implemetation consultation based on the solution you choose and I won't disappear after the invoice has been paid, I promise.
If that didn't make you curious to find out more I don't know what will :)
In all honesty, I truly think the A-To-Z HR Functions Set Up Solution is absolutely perfect for startups and scale-ups.
If what I offer resonates and you would like to know more please book your discovery call with me so we can talk about your company and what I can do to help and answer any of your questions.
I would love to hear about what is working (or not working) for you right now in the HR domain.
I promise to keep it light and informative - just a friendly conversation to see if what I designed might be able to help make your life easier.
Cheers for now!
Yours HR Magician
+971509661399
#hr #hrnow #hrmagic #startups #scaleups #fintech