HR in startups

Although the goals of an HR department in startups are similar, this type of business has some specifics that deserve a special look. In this article we will describe you the HR plan for a startup company.

This is because a startup has greater autonomy and openness to innovation and application of new solutions. And, to act strategically, all the people on the team need to be aligned with the objectives and goals of the business.

Due to these and other characteristics, structuring an HR department for startups is essential. The big question is: how to do it? That’s what we’re going to show in this article.

What is the biggest challenge in setting up HR in startups?

One of the biggest challenges in structuring HR in startups is keeping multi-skills talent in the company. And this condition, of having high-performance professionals, is what puts people management at the center. Especially in emerging companies such as startups.

Therefore, take note: the great challenge in the formation of a strategic HR is to attract and retain talents with multiple skills (multi-skills) and also to be able to identify opportunities for professional development to enhance their results.

For Mônica Hauck, CEO and co-founder of Sólides, the new digital work model is present, mainly, in startups. Therefore, it is natural that they are structured, incorporating sectors and departments that can contribute to the growth of the business.

“The current world demands much more efficiency from companies and HR has to be the strategic arm of the business.” – Monica Hauck

What is the role and importance of HR in a startup?

As we know, HR management is the soul and heart of companies. Therefore, it is natural to question the importance of the sector in a startup. And what role does he play. Would they be the same attributions of a traditional company?

In general, the role of HR in a startup is linked to the main challenge mentioned above. The sector needs to deal with the exponential growth of the business and, often, this evolution runs over processes and causes failures that can become problems later on.

Another relevant point is the increase in staff, which happens so quickly and ends up harming the selection process, resulting in wrong hiring. In this sense, the importance of HR in a startup is to do what is beyond traditional bureaucracy, such as payroll, vacation control, journey monitoring.

The role of Human Resources in this type of business is to unite employees and ensure that everyone is in tune, moving in the same strategic direction as the business. See below what HR duties are in practice.

1-Talent attraction

It is a set of efforts promoted by people management to attract high-performance professionals and integrate them into the company’s staff. When well done, attracting talent qualifies the company’s reputation , showing how attractive it is. This is a positive point for employer branding.

2-Professional engagement

For a business to thrive, collaborative participation in a common purpose is more than necessary. In this bias, an internal, fluid, transparent and objective communication, combined with good internal marketing actions, are capable of strengthening the engagement that the startup needs to move up the business ladder.

3-Productivity and Performance

Keeping productivity high and the quality of performance are responsibilities of people management. After all, the goal is to make the business reach higher levels.

4-Culture and organizational climate

Culture is essential to align expectations and have a team that shares the same ideals, values ​​and principles. Often, a company’s culture is responsible for attracting and retaining talent.

Another key factor under the responsibility of HR is the organizational climate. It is the main indicator of satisfaction or dissatisfaction among employees. This is because it is the climate that defines the individual and collective state of mind among professionals. In a startup, this would be no different. After all, who doesn’t want to work in a harmonious environment?

5-Human capital development

Training and developing people means applying a set of procedures whose objective is to contribute to professional development in the short and long term. In this context, corporate education, the Individual Development Plan (PDI) and the feedback culture come into play.

All these instruments provide the growth of human capital in companies, whether small, medium or large, including startups.

6-Retaining talent

Retaining the best professionals in the market is as important as attracting them. In order to keep your employees engaged and interested in continuing in the organization, people management applies a set of measures capable of awakening or establishing employee motivation.

What are Human Resources indicators?

HR Indicators or Key Performance Indicators (KPI) are instruments used to measure the performance of processes in companies.

In this sense, KPIs must be aligned with the organization’s objectives, and the Human Resources sector is no different. Measuring performance levels and the success of actions in people management is essential for the business.

For Mônica Hauck, Founder and CEO of Sólides, decision-making based on data is fundamental to the success of any business.

“Having data working in my favor means that my decisions about managing people become much more accurate. This allows organizations to operate with more agility, efficiency and strategy” , highlights Mônica.

Today, the use of KPIs has become important in an area that, a long time ago, stopped being just bureaucratic to become more strategic, human and integrated with organizational objectives.

6 HR indicators to track in startups

Startups stand out for their dynamism and freedom of business innovation. In this context, having a well-structured Human Resources department is a strategic key to valuing employees and strengthening the business culture.

Human Resources indicators and sector functions go beyond operational tasks. In fact, it is much more than that: they include strategic planning and monitoring of results.

Check below 6 key HR indicators to achieve better results in your startup.

1. Recruitment and Selection

Shows the time taken to fill a vacancy during all stages of the process, from publishing to hiring.

Knowing these data is important to face the drop in productivity of teams , with gaps in the sector considering the time to fill open positions.

R&S indicators still serve as a basis for evaluating the recruiter’s work, the time taken to complete an efficient selection process and the number of hires made in a given period.

2. Turnover or turnover

Companies where there are many layoffs, voluntary or not, need to understand the reasons for the layoffs. Defining metrics to control turnover helps to analyze the quality of the work environment and the effectiveness of career plans, in addition to corporate benefits and work accidents with sick leave, and unpaid leave for personal matters. In the latter case, the firm may cut the employee’s salary policy, for example.

By identifying the indicators that explain the high turnover rates, people management can qualify job and work accidents with sick leave, and unpaid leave for personal matters. In the latter case, the firm may cut the employee’s salary plans. In addition to promoting benefits and, mainly, reviewing organizational goals and objectives.

3. Productivity or performance

Assessing the performance of a group is possible based on three factors: cost, time and quality. Knowing the productivity indicators allows you to get the best out of each employee and each sector.

To calculate the productivity index during the workday, HR can use a simple formula:

Productivity (%) = products or services generated / resources used

Thus, people management can assess productivity by analyzing which sector produces more, spending less (time or resources) with as few errors as possible.

4. Employee satisfaction and organizational climate

To measure how satisfied (or dissatisfied) the employee is, management must see the professional as a client, that is, understanding that he has desires, pains, criticisms and suggestions regarding the organization or work.

In this sense, climate surveys and Net Promoter Score (NPS) work very well, while questionnaires with identification or face-to-face interviews usually generate discomfort in the employee.

Therefore, establish a method of approach that allows you to listen to the professional, giving space for him to express himself freely, issuing an opinion without feeling embarrassed.

5. Headcount

The headcount analyzes changes in the number of employees during a given period. Thus, it is possible to know if the team has increased or decreased, characterizing the growth or stagnation of the business.

With the results, HR can develop more accurate organizational charts, reassess job demands and review job descriptions.

6. Cost of Investment in Benefits

It represents how much was disbursed with benefits to the employee during a given period. To calculate this indicator, we use data provided by the headcount:

Cost of benefits per employee = Total invested in benefits / headcounts

Knowing how much is invested in corporate benefits allows defining a benefit program that is useful for the employee and competitive for the company in the market.