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3 Reasons Why Human Resource Management is Important for a Start-up

By HR Tech Outlook | Thursday, November 14, 2019

Start-ups face a multitude of challenges and an effective human resource management team in place can have a positive impact on the company.

Fremont, CA: An IT start-up has a myriad of functions to perform with a meager budget and minimum resources. With a lot of challenges and inadequate finances, an HR team seems redundant. On the contrary, human resource management is essential for small and growing IT companies because, for growth, people management skills are crucial.  An HR team is responsible for functions such as hiring, training, compensation, and termination of employees. On top of that, it must also ensure that the organization complies with all labor laws. Here is how HRM can impact an organization.

1. Collaboration

Administrative tasks, such as monthly pay-slips, leaves, and company policies, are a full-time job. Apart from these essential functions, performance management, organization development, safety and wellness, benefits and employee motivation, communication, administration, and training prove the importance of human resource management.   HRM is expected to recommend processes and solutions that improve the ability of all teams to contribute effectively. Despite the skill founders possess, they cannot handle everything, especially a growing company with significant team size.  Thus, setting up a dedicated HR role to manage and retain the talented pool of employees is crucial.

2. Hiring the Right Talent

People are an invaluable asset for any company as they form the culture, values, and profitability of an organization. Constant hiring and firing employees is a bad practice for a start-up as it is a time-consuming process, and the company must hire the right people to grow their business and reach the next level. Moreover, finding the right people is not just time-consuming but also requires specialized headhunting skills. Drafting job descriptions, listing the prospective candidates, short listing them, and scheduling interviews are a himalayan task which only a talented HR is capable of. An experienced HR has knowledge and expertise to sift through resumes and find diamonds in the rough.

3. Impact on a Company’s Goals

The demand for IT professionals is vast, regardless of the size of the company. For a small firm, attracting the right talent and retaining them for the future can be a challenge. Owing to this, the importance of human resource management in tech firms is even higher. An excellent HR and their team can write job descriptions that attract the best talent, create attractive career growth plans to prevent brain-drain, design and administrate effective training programs, plan team-building activities, and milestone celebrations. Thus, the company’s success is impacted by an excellent HR department that facilitates a good culture.

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