7 Ways to Set Up an Effective HR Department as a Startup

As a startup, your ability to build and grow your business depends largely on the quality of the people you employ. Hire qualified, hard-working staff that knows how to get the job done and you’ll have a better chance of success. Bring on employees who aren’t motivated and would rather be home in bed and you’re going to have a harder time getting ahead.

Because the duties of hiring the best people and maintaining positive relations with them during their employment falls squarely on the shoulders of your human resources (HR) staff, you’re wise to take the time to set up an effective HR department from the start. But how do you do this, especially if you don’t really have any experience in this area? Here are seven options to consider.

HR department

1. Hire the Right HR Staff

Though this goes without saying, it’s at least worth a mention. Put the right HR professionals in charge and you’ll likely wind up hiring better quality staff. Qualities to look for in this person include being self-motivated, having the ability to communicate effectively, being trustworthy, and having the ability to be objective. You also want to make sure your HR staff is representative of the company culture you want to create, encouraging them to hire people who will fit in with it as well.

2. Create Concise Position Profiles

The only way HR is going to know who would work best in a specific position is if the profile for that position is crystal clear. This involves thinking about the exact duties and responsibilities each person in your company will hold and being able to break them down into the skills and attributes HR should look for when searching for the perfect person to accomplish them.

3. Automate As Many Processes as Possible

The more functions you can automate, the more time your HR staff has to assess and train the people responsible for making you a success. This could be accomplished easily by utilizing an HR management software, that can assist in handling HR payroll, employee schedules, and all of their other administrative-type tasks.

4. Allow for Some Creativity

The great thing about having employees is that each one brings different experiences and ideas to the table. By allowing your HR staff a little leeway with their creativity in their roles, you may just come up with newer and better ways to handle typical processes and procedures related to other staff.

HR systems

5. Develop a System for Measuring Performance

Without a true system in place, each HR professional you hire will measure employee performance a different way. This can create unrest amongst the staff, especially if one person is criticized for the same thing another is praised. Setting some predetermined measures can keep this type of situation from occurring, creating more workplace cohesion.

6. Offer Continual Training Opportunities

The more tools you give your HR staff, the better they’ll be able to handle all of their job duties with greater effectivity. Depending on your funding, you may be able to hire someone to come in and train your HR department at regular intervals. Alternatively, there are several free online HR courses and classes that are good options as well.

7. Set a Clear Mission Statement

Your mission statement is the driving force of your company. Therefore, having one in place directs your HR staff, and all of your staff for that matter, to one common goal. It also makes it easier for them to hire and train people in the manner that best supports what you’re working to achieve.

Setting up an effective HR department takes time, but it is time well spent since these are the people who will be largely responsible the rest of your staff. Follow these seven tips and you’ll definitely have a great start, enabling you to create a business that extends long past the startup phase.