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Timing it Right—When Should You Set Up Your HR Department?

There’s no denying the importance of an HR department and the role it plays in the growth of a company. But with startups often struggling for funds in their initial years and scrambling through the hustle to get their priorities right, creating an HR department may not always be on the top of their to-do list. That’s very understandable…and rational actually. The question, however, is how long can they afford to delay the inevitable? Having an HR department is a necessity and no business can survive without it. And while entrepreneurs can juggle with HR responsibilities as a makeshift solution in the short term, relying on this approach beyond a certain point can prove to be detrimental for their business operations. It’s, therefore, vital for startup owners to have an understanding of acknowledging the right timing for their company to have its own HR department.

HR Management – How They Do at the Startups

To learn to identify when to make the call, it’s important to first understand how startups do HR management. Normally, HR activities among startups are shared, where there’s no one employee looking over the duties full-time. When a problem arises, an existing employee steps into the role and gets the job done. Although convenient, this makes for a reactive model. Being reactive with HR operations gives way to holes in the system and that’s when entrepreneurs need to step back and take the due initiative. The message is, business leaders should always keep their finger on the pulse and continuously assess policy changes, transitions or HR incidents—especially the most recent ones.If any measure reeks of interruption, taken in reaction to event(s) rather than being developed around the natural progression framework of the business, it’s a sign that the company needs a fully functional HR department. As you see, making a decision to set up your HR department isn’t too difficult, and all it needs is a strong awareness of current business dynamics, which to be honest is a skill that every entrepreneur must have. The problem could come when you let this judgement get clouded by the instinct to “save” money and try to handle everything on your own in the process. Why save at the cost of hurting your business? For further reading: 5 Ways HR is Critical for Business Success2019-06-17 16:30:10