The start-up business has specific needs. The HR in the start-up business has to be quick, has to be proactive and has to set up basic HR Processes quickly. The processes do not have to be optimised; the processes just need to produce results. What are the key HR Processes for the start-up business?

1. Key HR Processes
for the start-up business
CREATIVE HRM
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2. Start-Up:
HR Challenges
• The start-up business is the unique opportunity, but the start-up
faces many HR challenges:
– Corporate culture of the start-up
– Staffing Issues
– Roles and Responsibilities
– Compensation Structures
– Communication Issues
• Each start-up should take some lessons from large organizations –
they can have simple solutions
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3. Key HR Agenda
for Human Resources
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4. Start-Up:
HR Agenda
• HR Agenda for the start-up business should consist of the following
items bringing highest benefits:
– Set up the Recruitment Process
– Design the Compensation Structures
– Design the initial Job Descriptions, including Roles and Responsibilities
– Set up the regular internal communication
• Other items can wait … they are important and useful, but the start-
up needs to grow (quickly)
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5. Key HR Processes
CREATIVE HRM
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6. Start-Up HR Processes:
Recruitment Process
• The recruitment process has to be able:
– Attract talents
– Track open vacancies and job applicants
– Allow the proper communication with applicants and managers
– Fill vacancies quickly
• HR should not focus on the details of the process; the basic and
dirty recruitment process works as well.
• HR should outsource part of the process to the recruitment agency,
as the start-up is not overloaded and vacancies are filled as soon as
possible.
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7. Start-Up HR Processes:
Compensation Structures
• The start-up offers a different compensation package from the mature
organization.
• HR has to design the packages and standardized offers for employees, as the
package does not demotivate new joiners.
• HR has to introduce the basic leveling of job positions as the internal equity is
reached, and employees have no reason to complain.
• The package consists from:
– Low Base Salary
– Low Performance related Bonus
– High share of Stock Options and Shares
• HR has to balance all components as the first failure does not destroy the entire
business of the start-up.
• The compensation package has to balance both the possibility of the IPO and
the necessity to pay the rent before the IPO.
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8. Start-Up HR Processes:
Job Descriptions; Roles in Team
• The start-up has to organize its internal chaos, as it can deliver
products and services to market successfully
• The team has to split roles and responsibilities
• Each team member has to understand his/her role in the team, and
has to utilize its right to make a decision
• HR has to design the basic organizational chart and it has to
introduce the basic split of key roles and responsibilities in the start-
up business.
• HR has to introduce simple and clear job descriptions for employees
as they focus on the delivery of key tasks
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9. Start-Up HR Processes:
Internal Communication
• Start-Up business always changes priorities and tasks; the internal
communication helps to keep focus on key priorities of the team.
• HR should share the responsibility with the start-up founders to set
up the regular communication plan.
• HR has to provide information about key facts, as employees do
focus on their tasks.
• The formal internal communication helps to align goals of
employees and clarify their questions.
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10. Thank You
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