Top HR strategies for startups and scaleups

Top HR strategies for startups and scaleups

Today's businesses are expanding at a quicker rate than ever before. Increased globalisation, along with improved business technologies, is allowing businesses to employ and grow in a more distributed and — in an ideal world — efficient manner. But, as they say, the best-laid plans go awry, and when it comes to growing your people's operation in exponential growth mode, it's better to keep ahead of the possible breaking points than to risk falling to them blindly. Every day, teams work hard to keep moving forward while also anticipating any and all possible problems.

The HR Roadmap from startup to scaleup outlines when to focus on which aspects of the employee journey. So you can ensure you have the greatest organisational and business strategy, and yes, the best organisational culture, for the proper sorts of business growth. It specifies which pieces must be in place at the stage, as well as which tasks should be prioritised. Startup owners can spend around 40% of their working hours on tasks that do not generate income such as hiring, HR tasks, and payroll (via Entrepreneur).

The hiring and onboarding process is difficult enough, but it’s even more difficult for startups. A startup's scaling is an ongoing and inevitable process. A startup's ability to adjust to a growing workload without sacrificing performance or revenue is critical to its success.

As the workload grows and expands, it becomes increasingly important to have a competent team on board to split and compartmentalise the burden effectively. Only when it has outstanding people on board can a startup become a scaleup. Constructive Human Resource management is essential for onboarding and managing an entire team of employees. 50% of experienced hiring professionals — which includes HR personnel, hiring managers, talent acquisition professionals — say that data is the top trend impacting their hiring practices. (via Maria Ignatova)

The Human Resource department is sometimes assumed to be something that only large corporations and conglomerates care about, yet that's far from the case. HR is important for all businesses, whether they are SMEs, startups, or large corporations. When it comes to scaling up, it is far more critical for startups. Instead of expanding up, businesses without a well-established and structured HR system may lose out on the finest applicants or, even worse, hire the wrong individuals.

There are a few tried-and-true methods for preparing your Human Resource team to support your organisation's growth opportunities.

Role of HR in startups

Most businesses run on a set of systems that are based on organisational structure, job descriptions, and a fundamental understanding of how to get things done. When it comes to the operation of startups and SMEs, however, all of this information is available informally — generally kept in someone's head — to a small group of individuals. Daily activities are rarely written down, and information is generally exchanged via phone calls or in-person conversations.

However, the primary issue arises when the company begins to grow. When the burden rises, this unofficial business generally begins to fracture and eventually collapses. The need for personnel grows, and each time a new employee is employed, the information that has previously been provided informally must now be formalised within the company culture.

You risk enabling negativity and toxic work habits to establish themselves in the workplace if you don't have an Human Resource plan in place for your company, which can lead to low employee morale and retention. Here are a handful of HR's most important responsibilities is keeping your business functioning successfully turning it into a scaleup.

  • One of HR's main responsibilities is to ensure that your company complies with state and federal rules and regulations to avoid future litigation.
  • Not only can training new workers help you stay ahead of the competition, but it also helps with employee retention.
  • HRs ensure that the company's ideals are upheld by employing individuals who share those beliefs.
  • HR Policies provide employees with a structured work environment and create policies.

Top HR strategies to scale up

  • Now that your onboarding process is in place, your Human Resource department should start looking for fresh and skilled people to work with. When you're a startup, it's usually a good idea to outsource tasks before hiring full-time employees. Onboarding freelancers are preferred since they are easily available in all areas. You may connect with and interact with freelancers through a variety of internet channels and websites. Because you want to outsource but also want to recruit, relying solely on web portals isn't a smart option. They only link you with freelancers; nevertheless, a client-freelancer connection cannot be scaled to a full-time partnership.
  • After you've identified the best prospects, the following step is to screen them. It's one of your Human Resource department's most essential and time-consuming tasks, and it's mostly determined by the sort of candidate who will be onboarded. Assigning small activities that are somewhat comparable to what they would be doing if employed is a highly effective and quick way to begin screening applicants. We provide you a lot of information on the candidate's working style, talents, and fit for the job. You can simply judge the quality of their job without relying just on their résumé.
  • After you've identified the people who work for you, the following step is to carry out the HR managers' pre-planned onboarding procedure. If everything goes according to plan throughout the onboarding process, your working relationship with your workers improves, and you will be able to give them additional responsibilities to do. Keep the process of escalating staff roles as gradual as possible. Allow them time to adjust to their existing tasks before adding new ones. Consider increasing your level of responsibility as an excellent opportunity to develop new skills and get more practical experience.
  • Employees are a company's biggest asset, especially for a startup, and it's critical for you to realise that as a business owner. As a result, it’s important to attend to their requirements and ensure that they are completely pleased with their job and function in the firm. Employee morale rises as a result, and they become more productive. They are instilled with a sense of dedication and devotion, and as a result, staff turnover is significantly reduced. This helps a startup to scale up rapidly.


HR is undergoing a transformation. It's not only about obeying the laws; it's also about getting the most out of your employees and establishing a positive work atmosphere. Starting a company is time consuming, but knowing Human Resource strategies for startups and having them in place can make it easier. Now that you understand the role of HR in startups, set a plan to establish your own HR department and give your startup the advantage it needs to succeed. 

Amit Khanna - 7startup Advisory
Amit Khanna, Founder, 7startup

Amit has 18 years of experience in the industry and an MBA. He supports entrepreneurs with every aspect of their business including concept and product development, investor presentations, and fundraising.

Tags: Startup funding, venture capital, human resources, HR for startups, scaleups, okr, fundraising, pitch deck review

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