Importance of HR in Start ups

A formal procedure involved while recruiting or during retrenchment is something which is unnoticeable in almost every SME and Start up firms. Due to the increasing market competitiveness, businesses are looking forward to decrease their costs by any means and to support it, the first step taken by them is to invest lesser money in HR which ultimately affects the recruitment process and hence the management.

Human Resource is needed not just to fulfill the recruitment process but also to manage the large databases.  It is not about raising money, closing deals, doing sales or finding partners, it is about hiring people for the benefit of an organisation who cannot afford to hire anyone at any costs. It is the work of the HR who has the talent of recruiting a dedicated team within the fixed budget and also with the help of using the best service possible. Recruiting process is not that simple and easy. It requires lots of efforts and one need to roll up their sleeves to recruit the best team which can help their company grow. CEO’s and VP’s are not trained recruiters so they hardly have any idea of this process and moreover they are so busy looking after their company’s benefit plans that they do not pay attention to such a major portfolio.

Companies usually see the HR management as a minor role in the industry. In many companies there are no proper payroll HR managers, and they do not follow the executive recruitment process. Even if we find an HR practitioner working in a start up firm, the person would be lacking the professional training and experience as many companies do not feel the need of their HR personnel to possess the related qualifications.  An office administrator cannot implement strategies and policies related to management of individuals. It is the work of HR department to keep a track on staffing, mentoring, guiding, and keeping a track on all the policies and procedures and maintaining internal communications of the firm. If a start up firm cannot hire a professional HR then they have the option of outsourcing the recruitment job to a team of recruitment and executive placement agencies at a low cost and within their budget.

Understanding and managing the core business resources and making it work in this competitive world is not an easy task , but if we manage to hire an HR team, the business becomes more effective. Recruitment of employees is the major role for the HR department. This function involves evaluation of ability and competency of potential employees. While searching profiles, the HR team needs to view every profile and make snap decisions which means scan every profile very quickly and snap whether you want to take that profile forward or not. Do not simply reject the profile just because it doesn’t fits the portfolio you are looking for, sometimes we built strong connections also by meeting people from different field and gain knowledge as well. Also one easier step can be to ask for referrals, friends, or friends of friends, ex workers, because ultimately it would help the HR in building the database. Apart from recruitment of employees, HR also looks after improvement of compensation packages. HR department evaluates the performance of the employees and those who have exceeded expectation get a reward for their work. It is the responsibility of HR to ensure proper planning for the organisation’s future goals that involves an active participation of people. Organisations that have a clear direction work more effectively and the employees provide more result oriented output.

These are some points which the HR can keep in mind while recruiting professionals. Even if the company cannot afford an HR team, the above mentioned points can facilitate them to hire some efficient and honest employees but still and HR department in a company is a must for a smooth process. As companies grow it is important that they organize and manage themselves in a more professional form which means human capital and human resource management. Having a HR department focussing on HR management will become all the more important if they are looking for sustained growth.