With startups as the new face of progression in the business industry, many other factors build the aspect of a company. The formula for making a successful business adventure includes healthy employee engagement. While the whole business works to satisfy its consumer, human resources professionals are the lifeblood of the company staff. In other words, investment in the human resource department is equal to backing up labor force management which holds the strings of Return on Investment. If this doesn’t convince you enough, look out for these challenges in your startup. They will justify the need for a Human Resource Management Team in your company.
Not recognizing organic profits
Every startup company starts on a lean, behind which the management is busy developing
solutions and services favoring business growth. The superiority of other priorities over HR
functions makes it unnecessary for the administration to recognize the immediate contributions
of human resources to the company's revenue or profits. Their unwillingness to invest time and
resources in HR processes restricts them to focus on hiring resources. Thereby, other critical
aspects of HR simultaneously take a back seat.
HR processes effectively drive the organizational culture, employee alignment, and employee
performance within the business. Their fluency in identifying critical processes can help
management implement strategies to roll a higher return on investments.
No Policies Documented
With startups operating on a limited number of resources, personnel issues are likely to ping the
company. One of the primary reasons behind this is non-documented policies that can prove
costly as the problem arises. As a result, most startups forgo this procedure and only make them
when they run into these challenges. Similarly, there is also a need to align employees’
performance with the organization for accelerating business, considering the team’s small size.
Regardless of the size, every company must possess clear documentation of HR policies. This
will include concerns like paid leave, holidays, attendance system, etc. The list of these policies
should be used as a reference in the future by all the inputs. Given the tech-savvy nature of
emerging startups, modern-day investment should focus on a Performance Management System
that provides a digital solution to employee performance in alignment with its goals and policies.
Lack of Feedback Services
Like any other HR challenge, feedback systems also get sidelined from other priorities. While
the unit is busy hiring people to supplement their business, the missing formal feedback system
is deficient in providing the employees with timely input on their performance. Failure to give
and take feedback will only swell up disengagement between employees and management,
resulting in a significant loss of productivity.
A 360-degree feedback approach will help employee involvement and engagement in the
organization. A Digital directed performance management system will quickly assess employees’
performance and also provide feedback in return. This critical design will be an effective
solution for improving the overall organizational communication system.
No investment in workforce upskilling
Not just startups but every company prefers to hire resources that are good at their job. However,
employers also need to focus on the demand of this fast-changing business space. There is a
continuous need for up-skilling employees through training and development for improvement
and growth. Today, seminars, workshops, and training are more than a luxury. It is a necessity
for every company.
By adopting a competency-based assessment, approach startups can identify the key spaces
where employees need training and development. This technique can identify and fill the gaps
between the current and required skill set per prevailing industry standards. This step can aid
startups in the long run by spurring employees to grow with the company.
Every startup marks the beginning of a different generation of business entities, and therefore,
their challenges differ from previously established organizations. With every step ahead comes to a
new challenge, and HR is the spine that helps the startups remain erected under every
circumstance. If you want to witness your business scaling up, then the HRs’ customized
measures and critical understanding of business uprising are all you need.