Common HR Mistakes Startups Make

Regardless of how small or large your business is, the team that you assemble to work for you is an essential component to its success. As soon as you begin hiring staff members to join your startup, you must take on important human resources responsibilities. In many cases, hiring and developing talent as well as maintaining relationships with each team member can be stressful and challenging, and serious mistakes can be made.

Approaching the hiring and management tasks professionally from the start is essential for the success of your startup. It can reduce the number of issues that you run into and their severity. This means that you need to develop and follow effective human resources policies and processes immediately, and these should be scalable to accommodate growth in the years to come.

Identifying common human resources mistakes that startups make can help you to avoid making these same mistakes yourself. These are among the more common mistakes that startups make in the realm of human resources.

Not Seeking Professional Assistance

It may seem like hiring an employee to join your team is a relatively straightforward process and that you require little to no help with it. However, hiring a human resource professional as soon as possible to facilitate the hiring and management processes can help you to choose the right individuals to join the team. This step could also help you to retain the talent that you have worked so hard to recruit.

A good rule of thumb is to add one HR manager for every 50 employees on your team. This ensures that each individual on your team is properly managed. It also can help your HR team to identify potential issues that need to be addressed, answer their questions to promote happiness in the workplace and more. It is wise to have your HR professionals hired before adding even more individuals to join the team.

Hiring the Wrong Individuals

Entrepreneurs may be stressed with many responsibilities related to starting and growing a young business. With this in mind, it is understandable that you may take the approach of hiring any individual to join your team who has the right skillset and experience. However, there are many other factors to consider when making a hiring decision than simply the credentials on a resume. For example, a new-hire should have the right mentality to fit into corporate culture, solid personal skills to be an asset to the team and more. Your hiring process should successfully screen applicants in all relevant areas.

When you hire the wrong individuals for your positions, you may have operational issues. These individuals or others in the team could become discontent when new-hires are a poor fit, and your employee turnover rate may escalate. This type of employee experience could ultimately cost the company a substantial amount of money. To combat this, you need to have a solid financial plan for your business, and you need to stick to it. This plan should focus on standardizing the hiring process and creating clear, effective criteria to make a hiring decision by.

Not Having Strong Company Culture

Many of the largest and most successful corporations have a strong and identifiable company culture. For example, Apple is known for its outside-the-box thinking and for hiring creative individuals with fresh perspectives. You may assume that a company’s culture simply develops over time on its own, but the reality is that culture is created by the business owner though individualized decisions. For example, the interactions between team members and management can lay the foundation for culture. Without culture, your business may flounder.

Because of how important company culture is in even small companies, you need to understand how to create it. Choosing policies and processes that are aligned with the culture that you want to achieve is important. Your management team’s interactions with staff members also should represent culture. As you create corporate policies and business processes, the concept of corporate culture should also be in mind.

Failing to Develop the Team

While you may go to great lengths to hire new team members by focusing on their experience and skills, the business world is constantly changing. You need your existing team to be dynamic, and their ability to grow to meet changing needs is directly tied to the training opportunities that you provide to them. Keep in mind that your team members may also be personally interested in advancing within their career. They do not want to feel as though their skillset is outdated, and they may have a goal of climbing the corporate ladder within your company.

Developing your team begins during the onboarding process, which is a time when a new-hire learns about company culture and professional development programs available to him or year. These development programs could include in-house training and mentoring, assistance obtaining certifications, college tuition reimbursement and more. Development opportunities should be offered, encouraged and available to team members free of charge.

Final Word

While many aspects of your business operations require constant attention and thoughtful effort, hiring the right individuals to join your startup team is essential. Unfortunately, many entrepreneurs make serious hiring and management mistakes, and these can ultimately be detrimental and costly to the business. If you are preparing to hire team members soon or if you are facing HR and management challenges, it may benefit your business to reassess your human resources efforts and strategies.

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