This document provides guidance on when and how startups should establish an HR department. It suggests that HR becomes more important as a company grows beyond 15-20 employees to help manage policies, paperwork, and legal compliance. The document recommends having a dedicated HR professional once a company reaches 50 employees to properly handle these responsibilities. It outlines several Indian labor laws that kick in based on employee headcount, such as requirements for gratuity, social security benefits, and bonus payments. The document stresses the importance of establishing clear policies to guide employees and protect the company.

1. HRD 101 for
Startups

2. When your startup is bootstrapped to the bare minimum and has no
angel funding in sight, HR is one department that probably features
at the bottom of your to-take-care-of list. But times change. Your
angel funding eventually comes through, and the operation starts to
gather steam, with interest developing in the market. The good
times are finally rolling in, and you have enough money to finally set
up that full-fledged HR department. But do you really need to?

3. Human Resource (HR) management is a complicated domain and one that must reflect the culture of the
brand while protecting the employer and employees from any pitfalls. HR is a must-have if you have a
startup with more than 15-20 people because managing pay-slips, implementing policies such as
Vishakha Guidelines and late/leaves policy, mismanagement or IP theft, etc., can become a hassle when
you have employees playing dual roles. This is where HR comes handy and adds value to the
organisation.

4. Hiring, retaining, developing great
people is one of the toughest
challenges when building and running
a company

5. Why cant I hire great talent ?
Reason -
Your Employer Branding is non-
existent

6. Your No.1 candidate
source today is Employer
Branding

7. Your culture is a ping
pong table and office
dogs ?

8. Culture not only contributes to inner
company values but it also helps to create
a unique social and psychological
environment outside the organisation and is
a unique powerful tool

9. 50 is the magic no. Requiring HR.
Once your organization is 50
employees strong , you need a real
HR Professional as a regular member
of your team.

10. An organisation with 10 or more
employees is supposed to pay gratuity
to workers who have worked for 12
months or more.

11. The EPF Act provides social security
benefits like pension and insurance
cover to the employee of an
establishment which has 20 or more
employees

12. Payment of Bonus Act, 1965
An employee working in an establishment with
20 or more workers has rights to a bonus under
this act. The bonus is 8.33 %, and shall not
exceed 20 % of the employee’s salary.

13. Equal Remuneration Act, 1976
This act prevents discrimination among workers
on the basis of gender. According to this act,
employers can’t discriminate among genders in
matters of wages, training, transfer, and
promotion. The act provides for equal
remuneration to both men and women workers
for the same work done.

14. A clear-cut policy binds every
employee in the business and helps in
applying the same consistently and
fairly across the organisation

15. It enables entrepreneurs save
valuable time and resources on
policy disputes or potentially legal
cases.

16. Work Culture: You should make it clear to all
employees that ethical behavior, equal
opportunity, and respect for other employees
are keys to the employment relationship. Lay
down strict rules for dress code, sexual
harassment, customer misbehavior, and
disrespect to colleagues and breaking
confidentiality (data leakage).

17. Does this policy allow people
to function more efficiently, be
happier, or does it obstruct
them?

18. Best Practice
versus
Best Fit

20. WHY IS EMPLOYER BRANDING
IMPORTANT ?
▸ATTRACTING GREAT TALENT IS THE BIGGEST CHALLENGE (
RANDSTAND STUDY)
▸BRAND IMAGE AND COMPANY REPUTATION PLAY MOST
IMPORTANT ROLE (AON HEWITT , LINKEDIN INDIA SURVEY)
▸NEW COMMUNICATION/ MEDIA PLATFORMS REQUIRE
ORGANISATIONS TO BUILD THEIR PRESENCE ACROSS
SOCIAL MEDIA
▸EMPLOYER BRANDING STRATEGY HELPS IN ATTRACTING
BETTER CULTURALLY FIT CANDIDATES

21. Ruchi Bhatia
Ruchi Bhatia is IIM-C Alumni and Founder of Employer Brand India. She has
over 17 years of professional work experience across Sales, Branding and
HR. She is a Feminist, honored as Top 50 Women to follow in Asia, as Top
10 Sheroes in India ,Sheroes Mentor and Top 100 HR Influencers in India &
Worldwide. She is honored and recognised as Top 100 #FutureofWork
Influencers worldwide. She is on Advisory Board Member to DMA Asia and
Founder of HRGurukul. ( A Learning platform for HR Professionals ) . She is
invited as Speaker for topics on Employer Branding, Gender Diversity,
Women in Leadership . She believes in professional giveback and can be
contacted for speaking and mentoring. She loves to read, write and is fond
of trekking / travel. She can be contacted via twitter @rucsb or email –
ruchibhatia23@gmail.com
Mobile 9911112396