Why HR is an absolute must for start-ups

I’m sure some start-up and small business owners will be saying HR isn’t a must have; sales, employees, a phone, an owner with drive and determination, a brand name, funding, customers; these are the start-up’s must haves. I don’t disagree, these are must haves. However, I think HR should be part of this list and here’s why…

Some HR providers, champion the fact that their HR service mitigates your risk when it comes to legal employment concerns and yes I do agree this is an important function of HR as tribunal costs can be extremely costly. However, as a start-up or a small business that has no current issues and certainly no issues of tribunal magnitude, how can you use this as justification for employing or outsourcing HR services for your business? As a start-up or small business owner/manager your priorities list is longer than an albatrosses wingspan. I understand that and can see it from the owner’s point of view that funding is tight and the demands on the budget are high and spending money on ‘prevention’ (by the very nature of the word means it hasn’t yet happened) is harder to justify. Sales, costs and profits are the key considerations initially and ensuring all your HR policies are fit for purpose is important, but this can be the next phase of your growth, as long as you have the legally required parts covered.

I believe that the role of HR in start-ups is key, but it should be less scaremongering and more positive, lets drive your sales through the roof and get your expansion plans under way type of attitude. HR should add value to your business by implementing incentives and reward structures for your sales people, which will have an immediate effect on your bottom line or sourcing and hiring your first manager who will ultimately steer the team, while you focus on building the business. HR should be about looking at the company’s goals and ways HR can support growth and achieve those goals. Your people are the key to unlocking these goals and driving the business forward. Your employees are your company after all. Customers don’t just deal with your company (the product), they deal with your employees (the service) and customers remember service; especially if your product is your employee’s service.

Generally most issues or struggles come back to your employees and improving performance, training, attraction, hiring etc. can be the key to solving them. Training, developing, attracting (the right ones, as employing the wrong ones can also cost you money and time) and retaining your talent can be crucial to making your start-up a success and that is where HR becomes part of your top priorities list. With priorities coming out of your ears, mitigating your potential, maybe, possible risks can’t be a good enough reason to engage HR, but developing, growing, supporting, increasing sales for your business are the reasons to engage HR.

HR Revolution is a passionate outsourcing consultancy that provides a range of recruitment, leadership and development, HR consultancy and administration support services. We pride ourselves on supporting entrepreneurial businesses by focusing on these key areas to drive their business forward.

HRREV Blogger, HR Revolution | HR Outsourcing UK

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