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Why Startups Definitely Need In-House HR

Why Startups Definitely Need In-House HR

Automation or outsourcing is required where you have volume and one has to just replicate standard procedures but while building startups, the slightest of things need personal attention.

Extra Edge Through HR

In the midst of so much of competition attracting talent from the limited pool, where startups are suffering from, is lack of brand recognition. And a good in-house HR is the only saviour and distinct character which they can have.

Yes, these days it is becoming a trend to outsource support functions like, pay-rolling, infrastructure administration and recruitments to save time and cost yet, HR as a function is much more than that.

Unlike, large set-ups, in startups the need to have agile & flexible processes are much higher which can only be understood and handled by in-house HR.

These organisations create a niche for themselves through their culture, working environment, youthful energy, stress-free areas or play zones etc. For which, a dedicated internal HR professional can relate the energies to vertical strategies and synergies atmosphere accordingly. Welcome programmes, weekly events, local recognitions, interaction with leaders, party on small achievements, bright and cheerful environment can only be understood by someone who himself is integrated in the system.

Sustainability And Precision

A recent case with a leading health and lifestyle ecommerce organisation, they outsourced the compete HR function establishment to a consultant, who worked with them for 5 months and set the entire function, system, and operations for them. After the initial setup was done, the promotors tried managing just the process themselves but then just in 3 months they hired the same person back, since the ability to tailor something as per each situation was not possible.

The above example also shows that, human resource is the most vulnerable and unpredicted resource. In every situation, each individual mind reacts differently or else every time you have a different situation which needs its own solution.

Corrective Measures And Findings

Internal human resource teams can even work as a doctor or an investigator, a rating agency. They might tell you where your organisation stand against various parameters like employee morale, satisfaction, revenue, productivity scales etc.  And, while a consulting firm can suggest best in class strategies, methods and systems which can be used to improve on further, but only an in-house HR can verify the viability of the same or can understand why those issues are even sustaining in that particular startup organisation.

As per global findings, employee morale is mostly impacted by team culture, relationship with superiors, recognition of small achievements and individual performances, acknowledgement to local culture, scope to grow etc. Each one of them can be addressed only by if the HR professional is actively involved in 24/7 operations and employees trust them implicitly. Online helpdesk or shared centres can never gauge the same.

Constant Change And Development

Increasing annual revenues every year is every organisation’s motive but engaging new clients will not help every time. For multi-fold achievements continuous learning and building stronger competencies are even required.

One project or one template can never create a 360-degree impact on development wherein a focus and phase to phase approach will help to adapt changes faster. An in-house team can be quick to understand these needs better and in real-time.

This will always help new CEOs to save time and cost in every need identification activity done by externals, which will intern make them more competitive. During transitions and change an in-house professional knows the exact heat and pain areas on the floor and can work on the root cause more effectively and efficiently.

In Conclusion

All in all, for startups and startup leaders it is extremely important to have an in-house HR team, which can keep the entire organisation integrated to one rhythm and yet help each employee get comfortable in their ways.

This, in return, can give young entrepreneurs more space to concentrate on bigger challenges rather just fire-fighting with every day human behaviours and varied attitudes.

Note: The views and opinions expressed are solely those of the author and does not necessarily reflect the views held by Inc42, its creators or employees. Inc42 is not responsible for the accuracy of any of the information supplied by guest bloggers.