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July 2018

Is An HR Department For My Startup Really A Good Thing?

Is An HR Department For My Startup Really A Good Thing?

Many startup businesses will use a non-HR executive to handle their employment issues. This may not be a problem at first when you only have a handful of well-known employees.

But as your business grows and employee dynamics become more complex, it can do you more harm than good to put off starting an HR department. Unfortunately, many startups fear that starting an HR department may strangle their flexibility.

Here's why starting an HR department is actually good for your startup and why it's a sign your organization is growing up.

They Grow Up So Fast: Why Your Startup Needs An HR Department

It seems like yesterday that you were hiring your first employees and organizing your startup business. But now that your business is growing and reaching out, an HR department is more important than ever.

Without an HR department, your small company can quickly foster a toxic work environment, promote confusion, and negatively impact your employee retention. In fact, businesses that create an HR department quickly often have higher employee retention, faster hiring processes, and better work environments.

How Do HR Departments Help Retain And Develop Employees?

HR departments are more than mediators. They help hire, develop, and retain the employees at your business. But how do HR departments promote these benefits?

As it turns out, HR departments can do the following for your startup business:

  • Boost workplace culture. HR professionals are able to analyze employees and conduct check-ins without making an employee feel uncomfortable. This can help build the business' culture and help the team stay on brand.
  • Fairly compensate your workers. One of the biggest parts of HR is compensation and benefits. When your business doesn't have HR professionals to manage positions and determine fair compensation practices based on a role's market value, pay increases may be determined by managers based on opinion rather than market value.
  • Identify necessary policies. New employees may recognize issues in their workplace after a few weeks on the job. Employees can reach out to the HR department about these issues.

Only two out of every 10 workers believe their manager is doing a good job of encouraging them to do their best possible work. An HR executive search agency like Frederickson Partners can help you find the top managers and talent in HR to motivate employees and manage growth. For more information about talent acquisition or restructuring consulting, contact the HR executive search agency of Frederickson Partners today.