Most start-up firms are a single product companies. They do not design complex organizational structures, they usually miss job descriptions (it is a mistake), employees change roles often, and they keep focused on the design of the product. They invest into the development of the product, build the sales channels, and they grab the market share and invest into the market presence. The business model is usually simple and employees can keep focused on the delivery of the essential components required for the successful introduction of the product and related services. The HR Management Strategy for Start-Up business has to follow the same principles. It has to keep HR processes and procedures lean and quick. It has to support employees to maintain high performance, being focused on the delivery of key outputs, being motivational and rewarding.


Most start-up businesses require a simple HR Strategy that covers following areas:

  • hiring and new hire orientation;
  • keeping the focus of the team;
  • high-performance organization and team spirit;
  • results driven with the unique reward and recognition elements.

The start-up company has to design a robust and efficient recruitment process as the priority. Most start-ups grow quickly, and they double their staff on a monthly basis. It is very challenging for Human Resources to handle all requirements. Many managers have no time to meet with job candidates, and they trust Human Resources. The HR Recruiter has to gain the technical expertise as soon as possible to evaluate potential gaps between CV and the reality.

HRM Strategy for Start-Up Business

Additionally, HR has to design a strategic onboarding process for new hires. For this kind of business, the quick induction of the new employee is a must. The newcomer has to start delivering real results few days from the official start date. HR has to optimize the training, and it has to assign an active coach to all new employees. Also, the evaluations of the induction have to be frequently done.

HR has to design procedures that help keeping everyone focused on real problems to be solved. Even Human Resources can bring methodologies that do not allow the team to lose the focus. One product should be in the center, and the list of features needs to be short and closed. When the team starts re-thinking, the company loses the momentum and motivation. HR should help the leader to keep everyone focused, including the head of the team. HR should design the compensation scheme that provokes questions before making a decision about the new development approach.

Most start-up employees are self-motivated. They understand their role in the organization, and they are willing to help each other. However, HR should set a simple processes and procedures to keep the high performance in the team. HR should establish a clear policy that each milestone is celebrated and small rewards are distributed to employees who contributed most. HR should post information about the progress of all tasks. It should encourage team members to help each other because they all want to bring the new product to the market. Additionally, HR should introduce a simple tool how to thank you. It motivates most when employees get the instant positive feedback. They do not have to wait for the yearly appraisal. They just get the feedback immediately. It works best.

Most start-up businesses use the aggressive compensation scheme that pays a low salary in the beginning, but it offers a huge reward when the product is alive or the business is sold to the strategic investor. HR has to set with the leader the compensation scheme that highlights the moment when the product is finished and launched. It narrows all conflicts because no one in the business wants to lose time. Everyone keeps the focus on the date of going live.

Finally, the HR Strategy for the Start-Up Business has to be as simple as possible. The team has to focus on key priorities. HR has to source the company with new hires. HR should not spend time designing sophisticated processes and benefits. No one cares about them. They just need the agile Human Resources Management that fits the needs and requirements.





HR below the line

Goals, Goals, Goals!

Setting the right goals and objectives is the true art of the leadership. Human Resources trains managers and leaders how to set the targets for departments and employees. It manages the process so that all targets are aligned with the vision of the organization and follow the same approved principles.

However, Human Resources forgets to set the objectives for Human Resources Department. Just as the inspiration, you can find Goals and Objectives examples for the HR Business Partner, Recruitment and Staffing, Compensation and Benefits, Training and Development, Succession Planning, Leadership Development, HR Social Media, Employee Retention and HRIS.

The goals and objectives should be taken as examples. They are not the real targets to be used as they are provided. They just inspire. They help building the modern Human Resources Management Function in the company. Do not follow them blindly.

About Creative HRM

Human Resources Management is an essential business function in organizations that gain the sustainable competitive advantage. The development of Human Resources Management Practices and Procedures is an important way to reach targets and growth. HRM always start with the introduction of basic HR Management Policies, and it develops into the Leadership Development, sophisticated Compensation and Benefits, Organization Design, Performance Management and Career and Succession Planning.

creative HRM is a personal informational project focused on the description of latest trends in Human Resources Management. HR is a quickly developing business function, and new HR trends or procedures occur often. However, the implementation of new trends is difficult, and we should learn from mistakes and successes of others. Connect and stay connected.

(c) 2012-16 creative HRM

Become a friend of creative HRM on Facebook, Twitter and Google. You can also visit my HR Tutorial.

Success Measuring Statistics

TOPlist