It’s an exciting moment to start your own company, but it’s also hectic, and the emphasis is usually on your product or service. HR and new hires are frequently put on the back burner. Start-ups cannot afford to neglect this factor for the sake of their company, its culture, and its long-term viability.
Early on in your career, it’s easy to fall into the trap of developing connections with coworkers that are more casual and informal. This is often effective in the first stages. Although these ties will become more official as the company expands, they should be informal at first. As a result, it’s critical to begin thinking about human resources from the beginning. What strategy will you use, and what are the prerequisites that must be met first?
To stay clear of any problems, you should outline your HR strategy to incorporate the following elements:
Recruitment
If you want to build your firm, you’ll need a well-thought-out recruiting strategy. The importance of hiring the proper people may seem simple, yet it is critical. The average cost of hiring a new employee is roughly £3,000 in the UK. To avoid wasting time and money, avoid hiring the wrong individuals for the wrong reasons. You should review your recruiting process every three months to determine if there are any changes that need to be made.
Too frequently, pressed for time, start-ups resort to hiring a relative or close acquaintance instead of looking through reams of resumes. Find someone with the proper blend of business abilities and understanding who can work well with your current staff and help your company grow. You and your coworkers will be putting in long hours, so you need to communicate and cooperate well at work.
Determine what talents, expertise, and motivation you need in possible workers to help you manage your firm. The cornerstone for everything, from job advertisements to employee performance, motivation, and retention, is a precise job description. This will assist you in determining the qualifications necessary for the ideal individual.
Essential policies
Once the company is up and running, you may use a variety of security measures to keep it safe. At the absolute least, you need a policy and process for handling complaints and disciplinary concerns, as well as a way to terminate an employee’s employment if that becomes necessary. As an alternative, you may implement family-friendly rules, a moral code, or an attendance policy that considers all the possible reasons why an employee could be at work (or not). Again, this clarifies your approach to dealing with inquiries, concerns, and requests, and it helps to establish clear expectations.
Employment contracts
The contract of employment you use to hire your first employee should be lawful. Your intellectual property, sensitive information, and the activities of former employees will all be protected if these issues are addressed from the beginning of the company’s existence.
When you hire a new employee, you must provide them with a contract outlining the terms of their employment from the moment they begin working for you. Formally this would be a contract and an offer letter.
Within two months after the commencement date, a more comprehensive written statement is provided, with the primary statement being made on day one.
The following 10 point checklist should be included in your thesis statement:
- The name of the company/employer.
- Name, position title, and date of hire for each individual
- Payout frequency and rate
- Days and hours of work (and if they vary)
- Vacation time is a right (and whether this includes public holidays)
- Addresses and whether or not the location of employment will change
- Probationary term length and dates
- What is the duration of the employment (and if it is a fixed-term contract, the termination date)?
- Details about any advantages
- Compulsory training as well as information on who pays for it
Employees should be informed about your company’s sick leave and procedures, additional paid time off (such as paternity and maternity leave), and notice periods on their first day on the job. You may include this information in the primary message or in a separate document that they can immediately view.
To be considered part of a broader “written statement,” the following items are required:
- The specifics of several types of retirement plans and pensions
- Collective bargaining agreements (such as those negotiated by unions and employers)
- Non-compulsory training provided by the company
- Grievances and disciplinary measures
Payroll
Payroll management is also an essential aspect. Paying your employees the correct amount each week or month after subtracting their taxes and social security payments is what this implies for you. Alternatively, you may outsource this to a service provider. Remind yourself that it is legally expected of you as a business owner to pay your workers, create pay statements for your employees’ records, and handle PAYE/National Insurance payments and pension contributions. For a start-up, the repercussions of not handling this effectively may be disastrous.
Training
Developing, motivating, and retaining your employees requires an effective training strategy. New staff has to know what they are doing, and if they don’t, you need to have spent time teaching them how to use equipment, interact with clients, order inventory, or follow procedures after being hired. You shouldn’t presume that they already know what to do or that they’ll figure it out. Create a clear vision of what success looks like for you. And provide employees with the training and knowledge they need to succeed.
Involve employees
You’re looking for motivated, knowledgeable, and involved staff. People like that will look after your company even if you aren’t around. If you want to keep your team motivated and focused, think about what information, strategies, and updates they could find useful. Employees who have faith in their bosses are more willing to go above and beyond for them. Making choices with your staff in mind and listening to what they have to say will go a long way.
Getting HR for start-ups right
People and strategy are the two things that will define and distinguish any firm. One of the most exciting aspects of starting a new company is constructing a picture of how you want to lead and motivate your staff. You must do this right from the beginning, but once you’ve done so, you’ll begin to establish a lively culture with a motivated workforce and a prosperous start-up firm.
