BY Judah Hirsch Uncategorized
Should HR be a priority for budding companies such as Tech Startups?
The HR department is rarely a priority once a new business is born. Younger companies like tech startups do not prioritize having an HR department. This is so because the immediate goal of the company is to kick some immediate traction for the new brand. The first employees would usually be in marketing and sales to get that jump-start in mileage and revenue. Is this the right approach to building a company?
HR helps you build a solid team.
Though HR is not a revenue generating department, a good HR person can get you rock stars. In turn, these rock stars if well trained and properly on-boarded by HR, can produce tons of money for the company. In addition, HR takes care of all of the administrative things that comes along with recruitment – from collating relevant hiring requirements to getting an employee ready for the battle.
HR saves you money in the long run.
A good HR practitioner can help your business run more economically. For instance, HR can stay on top of motivation or cure the lack thereof before it produces adverse effects to the company such as losing productivity. HR too can be in charge of compliance to the laws of the State. By doing so, unecessary losses like penalties on government remittances can be avoided.
HR manages and reduces employee turnover.
It is quite obvious that hiring and training employees can be very costly to the company. The best way to cut these huge expense is by having a high rate of employee retention. A great HR person can easily help with this. Experienced HR practitioners would know from the onset who to recruit for the company. They have have a very good grasp on who will be able to adapt easily to the business environment. Also, HR can design a solid and continuous on-boarding and training process to keep everyone performing at their best always. Lastly, HR too is the one responsible designing creative incentive programs that would make employees stay.
These are just the few things why HR is still very important up to today. Hence, it might be good to consider hiring a rock star HR professional first before doing anything else. HR takes care and develops the most important asset of the company – its people. As Mark Salsbury wrote in his book Human Capital Management: Leveraging Your Workforce for a Competitive Advantage: “While extraordinary products and unique services still afford a competitive advantage, the one advantage that stands the test of time is people.”