HR in a Startup: 5 Crucial Tips Entrepreneurs Need to Know

You’re starting a new company, which is incredibly exciting. You’re inspired, ready to create your product, and refine the services you offer. Maybe you’ve even opened new offices and blogged the entire process to share with your followers along the way.

But what comes next is important: you need to figure out how to handle your new and future employees’ needs and navigate HR in a startup. Don’t worry–we’ve got you covered! This post contains 5 of the most crucial tips entrepreneurs should know when starting a new company. Here is our HR startup checklist:

  1. Build a Great & Dynamic Team
  2. Have a Clear, Articulated Mission Statement
  3. Cover Time and Attendance
  4. Provide Clear, Useful Communication
  5. Implement an Employee Handbook

1. Build a Great & Dynamic Team

Putting together a stellar team from the start is crucial to the success of your business. You’ll want to recruit a team that is not only exceptionally talented but also on board with your unique mission and vision.

Ideally, these team members will have both experience in the field and a strong willingness to learn. Startups are not clean-cut, so seeking self-starters will go a long way in solidifying process without your constant attention. Consider looking for individuals who have work experience in a startup or small business. These individuals will come with unique perspectives on your business and industry.

Another tip is to be wary of employees who are too quick to agree with your point of view. Startup stagnation can often come from a lack of ingenuity that comes from disagreement. Your first hires should have the confidence to stick up for their ideas, even if that means them telling you’re wrong every once in awhile.

2. Have a Clear, Articulated Mission Statement

When planning HR in a startup, also consider crafting a strong mission statement and values. Let’s face it–it’s impossible for you to dictate every decision made by your first hires. A mission statement stands as a pillar on which you can expect your employees to live by in the name of your business.

An inspiring mission statement also encourages hard work, which is necessary for the success of your startup. Your employees can get a paycheck anywhere, but they have come to you for a career. A purpose will help retain and motivate your team through the rapid ups and downs of your growing company.

Make sure you discuss the mission statement with each employee when you hire them and don’t forget to give them a copy of the document to keep for their reference.

3. Cover Time and Attendance

Some of your employees may be on different pay scales such as hourly, salary, or commission. Regardless, it is wise to track everyone’s time.

Time tracking can be intimidating and have negative connotations, but in reality, your goal shouldn’t be to be a micro-manager. Rather, collecting this data illustrates an honest picture of what you should and shouldn’t expect from your employees. If daily hours and stress are increasing, it might be time to hire more staff, take on less work, or reevaluate your company’s structure.

Attendance expectations should also be clearly established. Clear rules help sustain morale and foster better teamwork across the hierarchy of your company. This will also allow you to implement rewards for your team down the road, such as half-day Fridays or work-from-home-Wednesdays.

Creating a timesheet template in Google docs is a great starting point, especially if you’re on a budget. This can be a living document that can be modified to reflect your company’s time, attendance needs, and will benefit your startup’s HR department.

4.Provide Clear, Useful Communication

Having informed employees will create less confusion and stress. Provide your employees as much information as they need to create quality work. Keeping them informed with the information they need to effectively do their jobs and grow the company will show that you value their time and work.

The more employees know about the inner workings, plans, and the direction the company is taking, the more engaged and “on board” they will be!

Be careful not to overshare. Excess information can quickly cause confusion. Along with this, be open to hearing their feedback. Consider keeping lines of communication open, clear, safe, and transparent.

5. Implement an Employee Handbook

You’re a new business, so it’s okay if your handbook is not yet robust. However, you should still start writing it before you hire your first employee. This handbook can be as little or big as you desire, but make sure to include these key components:

  • Harassment and discrimination clause
  • Work hours and schedule
  • Benefits
  • Attendance policy
  • Disaster and evacuation policy

Giving your first employees a handbook will start them off on the right foot. They’ll appreciate your efforts, and through their feedback, will help you polish your handbook even more over time.

If you feel like a handbook is too much to take on, don’t sweat it. We’re happy to create one for you!

Contact Us Today

Rush Recruiting & HR is Portland’s go-to source for human resources solutions. We’ll do the research and land the talent you’ll need to reach the next level.

Contact us today at (503) 481-1285 or reach out via our website. Let us put our hard working and well-connected team to work for you today!

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