In a start-up business, the problem of effective human resource management is always a challenge for leaders. The Strategic Leadership Development Research Institute (SLEADER) addresses the issues that need attention in HR management in start-ups and suggests some strategies for effective HR management.
Human resource management issues in startups
Human resource management is mainly based on personal subjective experience
In the early stage of start-up, businesses often have many issues to take care of and handle to secure their money and finance. Businesses often focus on technology and market development. Therefore, the issue of how to effectively manage human resources is not the top concern and often occurs many problems mainly based on subjective experience.
The early-stage HRM capabilities of company leaders often do not match their goals and development ambitions. Therefore, many problems arise and lack of total and systematic solutions. Meanwhile, business owners often do not realize their own weaknesses in human resource management.
Business owners should be aware of human resource issues, learn to make reasonable decisions and solutions to steer their businesses to overcome market fluctuations.
Internal training or professional staffing?
The next problem for startups is where the human resources start. Many businesses have hot growth, the quality of human resources cannot meet the quality of service. Recruiting professional staff will bring work efficiency but it means that businesses pay higher personnel costs. Many business owners face objections from shareholders when they say that it is not necessary to hire professional personnel because it is expensive but not necessarily effective.
Meanwhile, many businesses choose to train internally but also face the fact that they will leave with experience.
Not paying attention to building corporate culture system
Startups are often quite busy focusing on growth, product and market development, lack of emphasis on process standards, effective HR management systems, and building corporate culture.
There are many jobs on human resources such as recruitment regulations, assessment regulations, KPI system application, salary and welfare regulations, labor regulations and corporate culture … have not been managed properly. system.
Leaders should pay more attention to building a systematic HR system from the start, applying information technology or management software, using experts to design policies and regulations to ensure smooth operating system.
An effective HR management strategy for startups
Effective HR management is a very important factor determining the success or failure of the business. If human resource management is not good, employees cannot coordinate or perform their work, there are always many risks.
Improve employee satisfaction
Business leaders should understand that human resources are the biggest asset of the business. For effective HR management, it is important to make sure employees are happy with their position at the company. The business owners care about their employees will increase productivity, improve morale, increase loyalty and reduce job hopping rates.
To increase employee satisfaction, a number of options businesses can apply such as increasing monetary benefits: salary, bonus (but also consistent with the current financial situation of the company), and other non-monetary benefits.
Develop a fair salary and bonus policy
A successful business has fair compensation policies and systems that ensure all employees feel fair and satisfied. When building a policy system, business owners need to research and learn and update new trends and policies.
It is also important to note that consistent claims must be set according to salary to ensure all employees feel fair and equal.
Build organizational learning and staff development
As a leader, the biggest goal is revenue growth, and in order to do so, it is necessary to retain good employees. Building a learning organization, internal training useful and interesting programs is a way to increase employees\’ working capacity, retain excellent employees as well as inculcate a sense of commitment in the mind of New staff.
Enforce legal employment policies
It is important in all businesses, including startups, to ensure that hiring practices are consistent with legal employment rules and regulations. Understand labor laws to minimize violations. Violating the law will cause many problems and problems. Businesses should find solutions to avoid violations such as: hiring highly skilled HR managers, hiring legal experts to draft their employees\’ rules or manuals.
Choose the right strategy for effective HR management
The business leader needs to clearly define the HR management strategy to operate effectively in any direction. There are two types of human resource management proactive (proactive) or reactive (reactive) is planning and planning. Each strategy will have its own advantages and disadvantages. Each company should choose a strategy that is consistent with the overall direction of the business.
The human resource issue is always unpredictable, so each business chooses a different management strategy. The Institute for Strategic Leadership Development (SLEADER) believes that the article will provide useful information to help startups find the path to effective HR management.