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How To Overcome HR Challenges In A Growing Startup


Startups are dynamic, fast-paced businesses that refuse to be slowed down by excessive bureaucracy and regulation. On the other hand, failing to implement an HR strategy for your startup puts you at risk of future failure.

Human resources are responsible for developing a strategy for managing and cultivating all of the organization’s employees to keep the organization on track with its goals. Here are practical solutions for some of the most pressing human resource issues confronting startups today.

1. Short Hiring Period.

Time constraints are a significant issue for startups. While larger businesses can afford to keep some positions open for months at a time, small businesses just getting started rarely have that luxury.

Startups should develop tests to screen potential employees. This test will vary according to the position. 

For example, all marketers should pass a writing test, though jobs in information technology require a higher level of technical knowledge. If candidates pass the exam, contact their references for a second screening. Assess their strengths and weaknesses to determine whether they would be an excellent addition to the workforce. 

And, of course, the interview is critical if you’re looking for someone quickly. You can make your hiring process even more efficient by using an Applicant Tracking System (ATS) to screen your applicants and schedule their interviews. 

Another option is to contract or outsource the job until a suitable candidate is found. If you require assistance immediately, this is a preferable option to going through the recruiting process. Startups will continue to look for a full-time employee while completing urgent work.

2. Employee Training And Growth.

Employee retention rates are low in startups due to a shortage of skill training. In addition, because so many startups are motivated by creativity, their employees require specialized training to achieve the best results.

Many employees become dissatisfied with their current circumstances and seek employment with an organization that offers superior training and advancement opportunities. Therefore, it is critical to establish a system for employees to enhance their skills through training.

Cost is the least important consideration. Talent development does not require a large sum of money; instead, it requires meticulous preparation and genuine intention. By inviting your peers and connections to your office, you can provide a mentoring program for your employees. In addition, subject matter experts within the organization may be able to teach in-house courses.

This way, you can spend as little money as possible on improving your workforce’s skills. Additionally, networking should be a core competency of any startup. Thus, you can always reach out to an investor or founder and invite them to participate in the talent development process. 

3. Documentation Of Policies And Performance Alignment.

In the event of a crisis, failing to document policies could prove costly. Because startups frequently run on a shoestring budget, it’s natural to assume that any human resources or staffing issues will be addressed as they arise. As a result, the vast majority of startups forego documenting their human resource practices in favor of making them up as they go. Similarly, due to the team’s small size, it is deemed inappropriate to align employee output with that of the company. The requirement becomes apparent only as the team grows in size.

In any business, large or small, human resource policies such as paid leave, holidays, and an attendance system should be documented. In addition, employees may refer to a booklet containing human resource policies and procedures to guide them in the future. 

Given their higher level of technical maturity, startups should invest in a new, digital performance management system that ensures employees’ performance remains consistent with the company’s priorities and policies. It becomes critical when a business is rapidly expanding, and the absence of such a framework can become a constraint.

4. Feedback.

The majority of startups lack a mechanism for gathering employee feedback on critical aspects of their businesses. Feedback is an excellent way to learn whether or not employees are satisfied with their higher-ups. Employees should also have an outlet for expressing their opinions, frustrations, and concerns about the work environment. Startups often hit rock bottom as a result of their failure to listen to employee suggestions.

Having a strategy enables you to make the best use of your resources and time. Additionally, you should be able to make more effective use of this information. If you’re going to create a feedback form with clearly defined questions and response criteria, you’ll also need to decide on the proper resources to use.


Startups are a distinct breed of business enterprises, and their human resource challenges are different from those of established businesses. Therefore, recognizing and resolving a startup’s human resource issues is critical for the company’s growth.