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Why HR is Important – Even for Startups

Why HR is Important – Even for Startups
From Recruiter - July 25, 2016

HR is relevant and necessaryeven for startups. Many startup owners assume they dont have to worry about HR functions until later on, when theyve grownbut thats simply not true. When its difficult to manage the paperwork and compliance forms, even something as (seemingly) simple as recruiting and hiringbecomes a burden.

While Red Branch Media has never surpassed the 20-employee mark, we have implemented some great HR processesbecause, well, we have to!

Lets examine exactly why you need HR processes, platforms, and personnel, even when youre tiny startup:

Higher Retention Rates

You want to keep the people youve hired, right? With an HR team in place, you dont need to concentrate on tracking engagement anymore. HR can do that for you.

Its also important to note that many startups default to hiring friends and familythe people inthefounderspersonal networks.An HR department will help draw appropriate boundaries while in the office.

As Lauren Weber, workplace reporter for the Wall Street Journal,explains: Startups can be especially fraught HR terrain because founders often hire friends and acquaintances in a companys early stages, turning personal issues into professional ones, and vice versa.

AnHR team willhelp reduce turnover due to personal conflicts. Plus, HR personnelwould be able to source, attract, and hire individuals who have the credentialsnot just the relationshipsnecessary for the job.

Compliance? No Worries

Between the I-9s and EEOC laws, employers have to remain compliant with a number of federal and state regulations. When you have more than a handful of employees, the web ofrules, regulations, and documents becomes incredibly complex. Thats why you need HR. Its recommended that employers with more than 25 people on their regular staff bring on a specialized individual to handle HR matters.

Compliance, like HR, is important even for startups, but because many tasks, like payroll, can be completed automatically through software, many startups default to self-maintenance. This may seem like a good idea at the time, but your organization is going to need its own HR personnel sooner rather than later.

Compensation, Termination, and More

Whether its payroll, conflict resolution, performance management, or avariety of other internal functions, an HRprofessional cantake care of it. What some startups forget is that HR is more than just the people who send paychecks every week.

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