What Will Every SUCCESSFUL Startup Eventually Feel? GROWING PAINS!

Success Means Growth 

Startup companies are legitimately focused on the immediate needs of developing their brand and expanding a client base. As revenues increase, company founders and leadership can become time-starved and overwhelmed with managing their new business. That's when they realize they need more help. They have now reached the exciting milestone where they must begin hiring employees, thereby becoming an employer.

Manage the Growth - Think about HR from the Beginning

Typically, company founders and leaders may think they don't need to worry about HR functions until they get bigger. They often think that if they can just figure out how to pay someone, then they're good for now. The reality is that businesses need to think about HR from the first employee they hire and thereafter. In fact, many startups spend more time on HR issues than they thought they would and end up wasting precious time struggling to manage employee-related paperwork and compliance issues. That is time that could be better spent growing their companies! Even worse, many startups make costly HR mistakes that subject their companies to needless risk and liability.

In addition, all employers (even small ones!) have a proactive responsibility to create a workplace that is free from harassment and discrimination, and a business interest in fostering good morale. A positive work environment can increase productivity, enhance the company's reputation with current and future employees and customers, and reduce the likelihood of employee lawsuits, which can be very costly. However, it takes management skill, effort, and time to develop a positive workplace. But it is critical to do because the consequences can be the flip-side: decreased productivity, negative reputation and an increase in the risk of lawsuits.

Manage the Risks – Learn as You Grow

The stark reality is that there are many complexities and an ever-changing landscape when it comes to employment laws and trends. Given the impact employees can have on the company, it is disturbing that startups spend so few resources on developing their HR muscle.

Manage the "Pain" - HR Strategies for Successful Growth

As a company grows, it needs to dedicate time to focus on HR functions, which is difficult to do, particularly if key players are focused on developing other areas of the business. There is no question that the following HR functions are all extremely important and time consuming:

• Developing and maintain employee handbooks that accurately represent your companies policies;
• Staying in compliance with federal, state and local laws;
• Recruiting, hiring, orienting, and training employees;
• Completing and maintaining employee documents in keeping with privacy laws;
• Managing employee performance;
• Developing and managing a total rewards program;
• Understanding COVID-19 workplace issues and how to manage them;
• Managing remote employees;
• And many more!

Employers have several options they can consider to support their HR needs:

• If inexperienced employees are handling HR, consider an industry certification for the employee to help get them up to speed;
• While hiring a more experienced HR professional may be more expensive, it may be a more immediate solution;
• Consider outsourcing all or part of your HR needs to a company such as Excelerator® Consulting. This can bring the expertise needed at a fraction of the cost of an HR director, and is an immediate solution as well.

Excelerator Can Help!