Start Ups move at an incredibly fast pace. One minute you’re a small team sharing a table; the next, you’re onboarding your 20th employee, juggling investors, and trying to build a culture that can withstand rapid growth.
What HR areas should a start up consider first?
A successful start-up will be required to get up to speed on a wide range of business activities, at the same time as progressing the core business function and working towards key investor-led milestones.
The first HR objective is likely to be a matter of compliance. The UK employment law system is complex, and there are many obligations that an employer must meet, simply to be able to engage an employee in work.
- They must prove they have completed appropriate “right to work” checks
- They must have a pension scheme in place
- They must have provided a statement of particulars of work, and so on
This is only the first step towards HR compliance and reducing legal risk, so it is no wonder that complying with ever-changing employment law is a major concern for a start-up. In addition, areas such as data protection and evolving guidance around statutory leave and flexible working continue to add further layers of complexity.
What are the other HR areas to consider?
Building a high-performing team rapidly is often an early priority for a new business. To do this, a start-up must look at:
- How to attract a high calibre of candidate in a competitive market
- How to build a fully functioning organisational structure that can be developed over time.
The team norms that are established at the very start of a start-up’s journey play a vital role in setting the company culture. Finding ways to encourage open communication, trust, critical thinking and mutual support will serve the business well in the future. This is not always easy, and another important HR objective in a start-up environment will be addressing minor conflicts early, to ensure they do not develop into more significant issues.
Challenges of a small but growing team
A small team can be intense, and the pressures can be large. Job roles are not always clearly defined, and a degree of flexibility is required of all employees. The intensity of a small team environment can also place pressure on employee wellbeing, making it important for employers to be mindful of workload, stress and burnout from an early stage. Giving people an opportunity to raise any concerns they have can help iron out any teething problems a new business may have.
A small team can be heavily affected by employee discontent or absence, in a way that larger organisations are not. A long period of sickness absence can be a real challenge in a small company, and managing this effectively from an early stage is vital, both to reduce legal risk and to ensure individuals are appropriately supported in returning to work as soon as possible.
Final thoughts
To conclude, start ups move at an incredibly fast pace. One minute you’re a small team sharing a table; the next, you’re onboarding your 20th employee, juggling investors, and trying to build a culture that can withstand rapid growth.
In all that chaos, HR matters can feel a lower priority, until it becomes the thing you wish you had invested in sooner. Strong people practices are not a ‘big company’ luxury, they are the backbone of sustainable growth.
At McLean HR, we draw on our lengthy experience working with startup organisations to share the HR advice every startup should be considering from day one. Taking a proactive, structured approach to people challenges helps give start-ups a strong foundation for sustainable growth.
If your start up business needs support and guidance on any aspect of employing people within your company, get in touch with our experienced HR team at info@mcleanhr.co.uk or check out our dedicated website for Startups.
