Human Resource Management (HRM) is inclined towards analyzing the factors and best practices that manage employees to achieve maximum efficiency. However, the HRM model of large organizations is not suitable for startups. The employees that are part of a startup live in different environments and constraints and must be treated in different ways. Moreover, the uncertainty inherent in the gradually changing scenarios of the startup affects and changes the workforce, requiring a different HRM approach.
Although HR Solutions has had an impact on the economy and job creation of startups, most of the research on HRM has always been focused on large companies. Hence, it is important that startups also focus on adapting to specifically-designed HR solutions for their brands. Going with one type of universal approach for all mega and minor brands may lead to a major loss for the growth of the brands.
Role of HR Solutions
One major manner of developing an efficient HR system for startups is to first understand the ground difference. Since HR Solutions in large organizations tend to focus on aligning employees with organizational needs, HR Solutions in startups must also pay special attention to establishing relationships between employees and key stakeholders within the startup. These types of relationships enhance the flow of knowledge necessary to innovate the process.
Here are few pointers for HRM for startups:
All processes at a startup aren’t set up efficiently or in some cases, there is no setup at all. Buying a startup-friendly HRMS will help startups automate, manage, and utilize all the processes in the best way possible.
To grow, startups are looking to hire and retain best talent. Often, this talent comes from established organizations that have robust HR processes in place. If the startups have no automation, even the onboarding process becomes a bad experience for the candidate. Due to a lack of resources, the plan of retaining this employee goes straight to the dump. Hence, an effective HR system can help in eliminating such loopholes in the hiring and employee management processes.
In the current prevailing scenario of remote working, without effective HR processes in place, startups will not be able to keep track of everything--from business development to managing resources and employees. A startup cannot manually call out to its employees daily, after all. This is why efficient HR solutions are one of the basic and most important requirements for startups.
Metrics matter, even for startups. It’s important to take decisions in the present by considering the direction in the future. A major part of this decision-making process is utilizing funds effectively. It also decides how many new employees will be hired and how much budget will be allotted to the exercise. Compensation analytics under the HR solution systems help startups identify hiring needs with ease and stop waste of precious resources in hiring people that do not add to its growth. Efficient HR solutions help in managing funds and resources, without burning them.
Sometimes, startups are cautious about having automation for HR processes. The reason given by various startup owners is that there are only a few employees and hence there is no need for an automated tool. However, to build a company’s progress with a strong culture, you need to manage employee data from the get-go. HR automation helps startups to recognize employee performance, promote deserving people, and make better decisions for the firm.
For a startup that has no existing HR processes, even processing payroll can be a mess. With no visibility on attendance, it can be difficult to count the number of leaves, the number of hours worked, track productivity, etc. This can lead to lapses in the system and accounting which will reflect badly on brand economics and employee management.
HR plays an integral part in managing compliance procedures in an organization. With automated HR solutions, startups can generate relevant reports and upload them on government portals to meet compliance regulations. This helps in ensuring there are minimum lapses in the processes.
Hence, specifically-designed HR solutions for startups is the need of the hour. Investing in good HR solutions will help in getting results that will reflect positively on a startup brand’s growth.
(Vijay Yalamanchili is Founder & CEO, Keka Technologies)
