Importance of HR in a startups

Importance of HR in startup
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Congratulations on successfully establishing your start-up! Now that you have taken the big leap you have a bunch of things to be done. Arranging funds, planning your business, generating leads, advertising your products, installing the technology, building traction, and much more. In the hustle of resonating your passion with your business, you neglect to realize the need for company culture, attending to your employee’s concerns, recognizing and rewarding your employees. These are some important factors you need to consider to provide a good working environment for them. (restructure the sentence) as your employees are the backbone of your company.

 Creating an employee-friendly environment is inevitable to retain them and keep them interested and motivated to work hard with passion. This is why hiring an efficient and the right person as an HR for your company is of great significance.


A start-up is a newly established organization founded by one or more enthusiastic entrepreneurs usually young to monetize their passion. They aim at bringing their innovative product or service into the market. At the initial stage, a start-up has around 5 to 25 employees which gradually increases with the development of the company.


An HR or the HR department is the abbreviation for human resources. As the name suggests, they deal with the workforce of their organization. They are the gatekeepers for diversity in hiring and deal with the conflict mediation between employees if something goes wrong. They are responsible for hiring efficient and appropriate candidates for their respective roles, firing employees, ensuring the business activities are carried out on par with legal policies, they keep track of records, employee policies, deal with incentives and salary hikes, ensure the company culture is being respected by the employees.

They decide on vacation time for employees based on their performance and resolve disputes within the employees and drive to ensure a safe and comfortable working decorum is maintained. They also take care of employee benefits. Their main responsibility is generally about helping the employees grow, making sure the right tools are provided to them, and offering support for their development and growth in the company. In a nutshell, their job revolves around catalyzing career growth and ensuring employee well being.


Start-ups face quite a few challenges and hurdles that cause them to neglect to hire an HR.

  • The requirement of funds is the major factor that intimidates them from hiring a lot of employees and they decide not to hire an HR to cut down costs.
  • They don’t prefer to have a culture the same as a big company.
  • They assume they can compensate for the role of Hr by using software and online tools that deal with dashboards which in turn deal with benefits and all the employees’ details and records, they consider it to be a wise alternative to cut down costs by cutting off the HR roles whereas it is not the correct decision.
  • The most glaring issue is that since few employees are working, they convince themselves there aren’t many people to deal with.


  1. Employees’ relaxation

Usually, when you have established your startup, you are likely to concentrate more on customers, sales keeping track of the expenses, and so on. It might not occur to you about your employees. It is significant to provide a healthy working environment with benefits and policies for them. Providing them with health insurance policies, keeping track of their leaves might be difficult to handle yourselves. Whereas when you hire a person who is particularly supposed to concentrate only on your employees and your workforce, it makes the employees comfortable. Recognizing and appreciating your employees’ achievements and hard work is essential. If one of your employees has been working hard and achieves specific targets at an outstanding rate or in an exceptionally small time period you might need to offer them a paid vacation or just grant them a few days of leave which might motivate them and increase their efficiency. When you have a person to carry out especially these tasks it is convenient for you to concentrate on sales and growth of your company.  

  1. Salary and incentives

Employees always expect a raise in salary after a particular time period probably once a year. This is another area of great importance. An HR would do a perfect job of analyzing the projects and work done by employees to calculate the deserving incentives to be provided for the respective employees.

  1. Legal policies

Another often neglected yet a matter of concern is to make sure the organization is functioning hand in hand with the legal policies and make sure you are in a safe region

  1. Good employer-friendly environment

Employees spend most of the time at your organization working for you. Among the interactions and cooperations between the workers might, unfortunately, be subjected to conflicts and arguments which may lead to unwanted chaos. It will be helpful to have someone to deal with the conflicts professionally and diplomatically. Creating policies that benefit your workers could be done well with a professional role.HRs play a significant role in dealing with and helping out if any of your employees are being abused or harassed.


There may be several alternatives that you may think will replace the position of an efficient but that is not the truth. Hiring an efficient HR who suits your company culture and style is inevitable to enforce the benefits to help and deal with the human side of your startup and you can get busy with your business without the burden of having to worry over their well being as an HR will eliminate that burden off your shoulders. If you haven’t considered hiring an HR this is the right time to do it. We wish you reap benefits with hiring an HR and wish you success.

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