Startups are witnessing excellent growth in almost every industry vertical. You can find everything right from drones to portable chargers. Thanks to the small and medium sized enterprise and startup boom that is fast turning out to be the backbone of a country’s economy. Unfortunately, most of these ventures fail within the first few years of their operations thus, failing to see the light of the day.
A few common reasons for a startup to fail include lack of market knowledge, unrealistic business goals and improper HR management. Most importantly, in the heat of moment and the adrenaline rush to reach at the peak, most startup entrepreneurs commit the brutal mistake of overlooking the importance of a sound HR strategy. Often, startups and small and medium sized enterprises neglect the importance of investing in a robust HRIS software for workforce management.
Irrespective of how good or competitive the product/service is, if a startup fails to acknowledge its employees, it will end up in troubled waters. This is the reason it is advisable to clear steer of legacy HRM tools and embrace an advanced HRIS software solution.
Here are some awesome tips for startup entrepreneurs to manage their human resources:
- Employ the right talents
Employees lack the motivation of an owner. Thus, instead of hunting for unrealistic folks, employers of startups ought to look out for people that match and fit the organisation’s culture aptly. Further, hiring managers and talent acquisition experts at startups should look out for diversity in several critical hiring factors such as experience, culture, education, etc.
This is because diversity not just reflects equal opportunity, but it also helps to improve a company’s overall performance. An HRIS software that helps with data-driven recruitment campaigns is all that a startup needs here to employ the right people.
- Setting up expectations
Startup owners ought to question themselves: what is it that your business wants from your team? What type of performance is expected? How an employee’s performance will influence the company?
Asking these questions will help employers to clearly define job responsibilities and functions for each employee. HR plays a pivotal role here, as this affects employee retention and satisfaction rates as well. Employees ought to feel that they are a key part of the company’s success. This helps to create a robust bond between employees and entrepreneurs. Now when we talk about employee engagement, how can we neglect the essence of technology here especially in today’s digital workplaces. Yes, today’s advanced HRIS software with in-built employee self service portal can helps a startup drive its employee engagement rates to a whole new level.
Often small businesses and startups due to limited resources resort to their star employees when it comes to training the new recruits. Not every star employee is aware of all ins-and-outs of conducting proper training. Thus, employees may fail to get quality training.
This is the reason it is imperative for startup entrepreneurs to have proper training and development programs in place, as a part of the orientation process. There are businesses that hold welcome parties or lunch for newly appointed employees.
Now when implementing training manual, it is advisable to think about how the training program will relate to the said position. Make sure that the training manual is adaptable and customisable to every department’s objectives and purposes. The ‘one size fits all’ mantra won’t work in this case.
- Payroll and Benefits
Benefits and compensation packages reflect a lot about a company. A well-thought out and designed compensation package is sure to attract as well as retain employees. This can be anything from performance bonuses to retirement plans or health insurance.
On the other hand, it is equally important to keep in mind the various rules and regulations pertaining to employee compensation. For instance, your HR ought to be well-versed and updated with all the wage regulations such as minimum wage, overtime wage, etc. Having a cloud based HRMS payroll software can address all such painpoints.
- Employment Laws
Several startup entrepreneurs lack the needed resources and budget to employ an attorney when it comes to dealing with legal and statutory compliance issues. This is why it is advisable to invest in a powerful HRIS software to take care of all the statutory compliance issues associated with employment rules and regulations.
Be it minimum wages act, TDS deductions, PF deductions, professional tax, gratuity, etc., an automated HRIS software can take of everything. No need to worry about missing tax deadlines and changing employment regulations.
Entrepreneurs need to practice total transparency. Yes, employers ought to share data and information to all their employees without fail. This enables employees to stay engaged and work as a team. Most importantly, it makes your employees feel valued.
Following these above-mentioned tips will not only improve the work environment at your startup, but will also help to foster a happy and content workforce.
Anwar Shaikh writes about business management, start-ups, human resources, cloud, analytics and more. A self-made and reared up writer, Anwar writes for Pocket HCM, a leading provider of Human resources management solutions to small and mid-sized businesses across India. You can find more about him on Google Plus.