HR Mistakes Every Startup Should Avoid
Building a business from the ground up is a very challenging task. It requires meticulous planning, hard work, rigorous execution, and constant assessment to ensure a successful outcome. In order to do so, you will require a highly skilled team of professionals who not only have the necessary skills but also understand your mission and diligently work towards achieving it. This makes hiring the right kind of employee extremely crucial for startups.
Unfortunately, this is where most startups go wrong. Due to the scale of investments and the activities that are required to be carried out, the HR function takes a back-seat more often than not. And instead, startup founders tend to choose outdated recruiting strategies that fail to attract the type of talent they need. So, if you are a startup founder that is looking to hire the right candidate for the job, take a look at theses top five mistakes made by startups and learn how to avoid these situations.
Mistake 1: Choosing Quantity over Quality
Solution: Understand Your Needs and Hire Accordingly
Quality hires are important for every business, as weak hires can significantly set you back in terms of finances. By choosing outdated hiring methods to avoid wasting time, most people tend to lose focus on what skill set is required and rather go by what is available. What you should do instead is shift your focus to planning your recruitment needs from a long term perspective and focus on proper execution by looking for the right channels and methods to attract the desired talent.
Mistake 2: Ignoring the Importance of a Recruitment System
Solution: Leverage Upcoming Technology
As times change and technology evolves, the way businesses function change, and so do the required work skills and ethics. In order to rightly manage candidates that meet these requirements, you need to leverage software that enables efficient functioning of such processes. Using Applicant Tracking Systems, automating parts of the hiring process, and regular checks on the efficacy of such time-sensitive tasks can be used to formulate a recruitment pipeline that works best for your organization.
Mistake 3: Lack of Clear Rules
Solution: Create a Seamless Onboarding Process
The recruitment function doesn’t end when you select your employees from a long list of prospective candidates. The employee onboarding process is also crucial to ensure employee retention and maintain company culture. In addition to formulating your recruitment pipeline, you also need to develop a detailed onboarding process to help not only the new recruits adapt and adjust to their job roles seamlessly but to help the other team members adapt to the changes. You can create an onboarding handbook, deck or provide literature that supplies them with all the necessary information related to the company, its culture, the mission, as well as their job roles and department function.
Mistake 4: Inadequate Employee Records
Solution: Maintain Detailed Employee Records
Another big mistake startups are guilty of is not maintaining formal employee records. While this may not be high on your priority list when starting out (understandably), it is necessary to maintain employee records. These records must include their basic details, medical history files, pay rolls as well as their tax details. This may not be of immediate use, but as your organization grows and your employee strength increases, you will be required to keep accurate records to ensure compliance with the labor laws and government regulations. If done carelessly, you may have to face stiff fines due to violations of regulations, thereby increasing the enterprise cost. So, in order to avoid such a situation, be sure to maintain accurate records at all times.
Mistake 5: Ignoring Employee Development
Solution: Create a Concrete Communication Channel
Being able to provide and receive feedback is imperative when growing a company and therefore helping your employees grow. Creating an open communication channel allows for constructive feedback that can boost company efficiency and keep any miscommunications or frustrations at bay. This includes the feedback you give your employees to help them overcome their drawbacks as well as the feedback you need to help keep your employees happy. An open channel that can be used to properly communicate grievances from both ends and ensure smooth functioning of each department will only help your company on it’s path to growth.
The way you choose to handle your recruitment and hiring process and your HR process can make or break your startup. And improper execution will result in loss of time, resources as well as loss of momentum. This directly affects your mission, company culture and business goals. We cannot stress enough the importance of hiring the right people to grow your company in a thoughtful manner and sustain your desired company culture.