More Power to HR Function in Startups
In the contemporary business world, human resource (HR) has surfaced as one of the prominent functions in organizations. HR has exceeded its boundaries where it is not limited to managing people only; it has come out to be an overall facilitator of businesses. It influences every department in overhauling the entire wear and tear. Though, it can never replace other important functions such as marketing, sales etc, but without a healthy HR function each of the business functions might not be working soundly.
HR as a Leading Function
The present status of human resource function is outplaying other major functions in organizations as per some latest updates from startup companies. Ola, Flipkart, and Shopclues are building a strong HR function. The reason for such change is their troubled valuations. These companies have found the solution to overcome from troubled valuations through giving more power to HR. The situation has created an increased demand for human resources heads. They believe that HR leaders would handle the pressure in a better way and direct the HR team strategically.
Finance No less than HR Function
Besides HR, these startups have also seen finance as one of the crucial functions that would help them overcome from upset valuations. One more reason for companies to think about empowering their finance department is investors are pressuring companies to cut the cost. For them, finance leaders would cut the cost smartly without hampering the flow of business. These situations have created a great demand for finance experts. Leaders would make their finance department more equipped.
Leaders Appointed by Startups
Nitin Seth, previously associated with Fidelity India, joined Flipkart as chief people officer earlier this year to make the company one of the best places to work. Few months back, online healthcare platform Practo has appointed former In-Mobi chief financial officer Manish Dugar as its global finance chief. Late previous year, taxi aggregator Ola appointed Infosys CFO Rajiv Bansal as its finance head.
Appointing leaders from HR and finance industries is a clear sign that startups have concerned about their valuations, and they have found the solutions in upgrading their HR and finance department with leaders.
Focus is Different Now
For startups, the major motive has shifted from plain growth to robust financial health and a better work environment. It has led to a miraculous change in the demand for talent in the last few years. It has made HR and finance play a great role to make the valuations better. The major emphasis of companies is to find doers not practitioners. As startups are looking for refined workforce and cutting the costs, HR and finance collectively have to do them in a right way.
Today, the key requisite for businesses is talent that must know the ecosystem of company and what their company is actually looking for. At one end, the major concern of HR and finance leaders should be propelling their respective departments and increase the valuations, on the other hand, they should take care of the people (workforce working in the company and those who are being eliminated) in any case.
Author Bio: A firm believer of “Everything Happens for a Reason”, Vikash has been writing on plenty of subjects for internet. Presently, he is associated with recruitment technology industry and sharing tips on the best HR practices through the use of HR technology and beyond that.