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Role of A HR in A Startup Organization

The key roles of an HR in a startup organization include defining the corporate culture and ensuring compensation structures, team staffing, internal communication policies, performance reviews, and general policies align with the founders' vision and company values. An HR must work closely with founders to attract the right talent, balance immediate needs with future growth, design compensation to motivate employees as the company evolves, and implement transparent communication and flexible performance reviews given startups' uncertain environments. While legal requirements and boundaries still apply, overly strict policies may not work for startups, so an HR needs to work dynamically with the business.

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JAYSHREE SHARMA
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0% found this document useful (0 votes)
147 views9 pages

Role of A HR in A Startup Organization

The key roles of an HR in a startup organization include defining the corporate culture and ensuring compensation structures, team staffing, internal communication policies, performance reviews, and general policies align with the founders' vision and company values. An HR must work closely with founders to attract the right talent, balance immediate needs with future growth, design compensation to motivate employees as the company evolves, and implement transparent communication and flexible performance reviews given startups' uncertain environments. While legal requirements and boundaries still apply, overly strict policies may not work for startups, so an HR needs to work dynamically with the business.

Uploaded by

JAYSHREE SHARMA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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ROLE OF A HR IN

A STARTUP
ORGANIZATION
HR Strategies for a Startup Organization
◦ Corporate Culture
◦ Team staffing
◦ Compensation Structure
◦ Internal Communication
◦ Performance Assessment and Review
◦ General Policies and procedures
Corporate Culture

◦ Define what is the vision that founders have for the company
◦ What values does the company hold dear and what all is secondary
◦ Do incentive structures, internal communication & policies and procedures accurately reflect
company culture
Team staffing
◦  A startup is in a unique position where the requirements for the team do not remain constant
from one stage to another.
◦ Team staffing needs to be a balance of skillsets. More generalized skills are necessary early on
and then move towards specialization as the products/services take shape.
◦ Only technical skills and past experience should not be the criteria for selection.
Entrepreneurial mindset, team skills, perseverance and willingness to learn are critical traits for
early team.
◦ The recruitment process has to be able to:
◦ Attract right talent.
◦ Align immediate team requirement with future growth.
Compensation Structure

◦  HR needs to create compensation structure such that an individual’s motivations are aligned
with the company’s goals.
◦ HR has to design the packages and standardized offers for employees, as the package does not
demotivate new joiners.
◦ HR has to introduce the basic levelling of job positions as the internal equity is reached, and
employees have no reason to complain.
◦ The package consists of:
◦ Base Salary + Performance related Bonus
◦ Stock Options and Shares
Internal Communication

◦ Start-Up businesses always changes priorities and tasks; the internal communication helps to
keep focus on key priorities of the team.
◦ HR should share the responsibility with the start- up founders to set up the regular
communication plan.
◦ Transparency: Information sharing and taking team members in confidence is quintessential.
so as to minimize employee-management disconnect. Unlike large firms, startups have far
fewer options to brush the details under the carpet. Creating a culture of openness, helps
dealing with challenges, when they arise
Performance Assessment and Review

◦ Due to the uncertainty in almost every area of a start-up’s business, trying to force fit
traditional methods of performance assessment and review doesn’t work.
◦ Individual performance assessment needs to be contextually aligned with the overall company
performance as interdependence of various functions is very high.
General Policies and procedures

◦ Trying to define very strict HR policies and procedures in the early stages of a start-up may be
an overkill given the uncertainties around the business as well as the team and structure.
◦ So, HR needs to work in close coordination with the business to ensure that all legal
requirements are met as well as employees are clear about the boundaries of their activities
and behaviour.
◦ Some key policies to include:
◦ Employment policies: Hiring, Firing, Code of conduct, Leave, Travel
◦ Trainings, Promotions, Job enrichment & enhancement, Transfer, Grievance redressal.
THANK YOU

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