If you’re a high-growth startup, it might feel like there are a million balls up in the air right now. You’re going through your funding rounds, testing your product, and preparing to enter your target market to make a lasting impact.
While HR might be the last thing on your mind, it should be the first thing on your list. Without the prerequisite HR structures in place, your startup could fall flat before you even get your product to market. If you’re currently in your funding stage, here are the essential HR tasks to get right.
This might be the most important HR consideration to nail down. It is essential that you have a clear organisational structure, in which the roles and responsibilities of everyone on the team are clearly defined and nothing is left open to interpretation. This will give potential investors confidence in your business plan, while also ensuring that everyone in the company has a clearly-defined mission.
Review funding terms
If you are in the Series A funding round, you must review any and all terms put to you by investors. Funding terms will often have clauses attached that will affect your HR considerations and may relate to compensation, employee rights, and compliance. For this reason, you should use a specialist legal service that can vet your series A funding terms and guide you through exactly what they mean and how to push back if necessary.
When your startup is growing, you will be adding new people to the team on a near-daily basis. It is essential that you have a uniform procedure for onboarding these new team members so that everyone has a consistent and supportive experience. This also includes preparing important documents such as your standard offer letter, payroll sheet, and any binding employee agreements that might be necessary (such as NDAs or IP agreements).
Compensation and benefits
Obviously, you will be concerned with hiring people who are genuinely passionate about what you do. However, the only way to attract and keep those people is with competitive salaries and benefits. Make sure that you and the board work out a competitive compensation scheme for all employees that your company can afford. Take extra care to ensure that people of various levels are compensated fairly and in a way that complies with relevant legislation regarding equal pay.
Compliance and regulations
As an employer, you are responsible for the safety of everyone within your organisation. You are also responsible for ensuring that all employees fulfil their legal and corporate obligations at all times. This means incorporating any health, safety, and compliance training that might be necessary into your onboarding process. It also means training all employees on important workplace policies regarding equal opportunity, biases, and ethics. This way, your startup will have the opportunity to be the best that it can be.
In the rough and tumble world of startups, people often forget about or even ridicule HR concerns. However, this checklist should demonstrate that, if you are serious about success, you should put your HR first.