Importance of HR in Startup and neo Entrepreneurs post Covid-19.

Importance of HR in Startup and neo Entrepreneurs post Covid-19.

-         Pranab Baruah, Management professional

The year 2020 will go down the annals’ of history as a year which brought in paradigm shifts in the way we go about doing our daily business. As the world readies itself to set the house in order post Covid-19 and as we dust ourselves to gingerly re-establish in the post pandemic world, we have to, not only sharpen ourselves with new skills but also look at the way we will conduct our business in the new normal.

Having interacted with various entrepreneurs and startup rock stars, it can easily be summarized that they have a tendency to overlook the human aspect of their business. For most entrepreneur –acquiring talent is last of their priorities because startups are often so focused in kicking off their business right, and focused on the output, that they fail to notice or invest time in human capital. Entrepreneur by default are known to possess above average zeal to see their idea take shape, drive and develop business, trouble shoot problems, manage finance, deal with the authorities and yet try to find peace, enabling them to think out of the box and take strategic decisions to further their venture. Resulting in more headache, less peace of mind and in turn taking a toll on their health.

Human Resource, the much underrated function in the business environment needs to be looked through a different lens. Hiring people in any new venture is always need based and lot of important aspects are overlooked. Unstructured HR and recruiting processes can do more harm than good. They can foster toxic work environments, create confusion and negatively impact on employee morale and impacting retention.

Research points out that happy employees are 20-35% more productive. Because startups are often so invested in kicking off their business right, and focused on the output, they fail to notice or invest time in workforce development. Statistically 50% of the small business fail in the first 4 yrs and 23% fail because they don’t have the right people working for them.

Business owners need to map the priorities and concerns that needs to be addressed. Accept HR as an integrated function rather than a support function.

A typical HR function will comprise of Business partnering, Talent Acquisition, Compensation & Benefits, Learning or capability development, Employee Engagement, Rewards and Referral programs, Comply with statutory obligations etc.

Some of the key activities of an HR function are –

• Create standardized job Description to quantify the efficiency and effort of the individual.
• Hiring of the right person at for the right job.
• Maintaining personnel function – viz. record keeping of leaves, attendance, absenteeism, medical benefits.
• Frame policies like Leaves, Medical, Maternity, Paternity, Probation, Confirmation, Code of Conduct, Work Ethics, and Sexual Harassment etc.
• Learning & Development to boost productivity, individual growth. (It is seen that satisfied employees are 12 times more likely to stay in a company).
• The HR function is the custodian of the Organization’s culture and identity. HR strategy is aligned with the business vision and mission statements
• A responsible HR function will always keep the interest of its people first. Be it employees’ safety or providing Medical Insurance and other safety measure.
• Performance & Rewards (Compensation & benefits) ensures that right pay for the right job is maintained keeping in mind the industry standards and on the other hand Payroll function ensures that accurate payment is made on time to the employees.
• Periodic competency mapping ensures that right talent is mapped to the right job so as to maximize the productivity of each individual

HR has evolved over the years from a support function to a strategic function. From the humble Welfare Officer of the earlier days to Personal Manager during the World Wars to Solving Trade Unionism after the Industrial Revolution to Compliance Officer during 80s and 90s to the present day Strategic HR.

Strategic Partner

• Develops & aligns strategies with business
• Assist line managers in solving organization, people and change related issues
• Contribute to management team’s strategic decision making
• Foster system thinking, customer focus
• Strategically manage workforce development

Change Agent

• Understand the organization’s culture and what is effective & ineffective
• Institutionalizes change capability within the organization
• Assist line managers to lead and facilitate change
• Act as a consultant in organizational effectiveness
• Enhance management development

Administrative Expert

• Creates and delivers effective and efficient HR processes & services tailored to unique business needs
• Manages people & HR related costs
• Ensures internal & external customer focus
• Applies information technology to rapidly deliver quality HR products & services
• Employee Champion
• Develops strategies & helps implement actions that enhance human capital contribution
• Helps build workforce commitment
• Ensures fair, ethical & equitable people processes and practices
• Voice of employees

Employee Champion

• Develops strategies & helps implement actions that enhance human capital contribution
• Helps build workforce commitment
• Ensures fair, ethical & equitable people processes and practices
• Voice of employees

Entrepreneurs can take the help of external Consultants to work with the in-house HR to reduce cost at the startup phase. The situation arising out of the Covid has shown that it is possible to work from home and Start-ups can outsource these functions to competent and qualified professionals sitting in various parts of the Globe. There are agencies for Recruitment, Training & Development, Employee Engagement, Competency mapping, Payroll, Staffing etc. While it’s understood that Start-ups are bootstrapped but having the right people with focus and application can help them tide the storm together.