8 Obvious Hr Challenges Faced By Startups In 2023

In a startup, attracting talented employees, maintaining employee records, developing strong HR policies, creating solid organizational development, and intentionally cultivating a culture are all important. However, none of these are successful without overcoming several challenges and attracting talented employees.

Here are the practical solutions to challenges encountered in a startup:

Having the right candidates for Senior Roles

Problem: 

The HR team is cautious when filling the senior roles who are skilled at what they do, but are weary in engaging with other employees towards a vision. The senior person hired may or may not have the necessary leadership skill and can be a cause of disharmony in the organization.

Solution: 

All through the interview process, determine whether a candidate for senior roles is having leadership quality.

Here are the sample questions for asking the candidate:

1)Tell me about your favorite business leader.

2)How do you perceive success?

3)Tell me about the last time a conflict was resolved in the team and how?

What the HR team looks for is a senior role candidate who can empower employees with strong leadership qualities. Even though there is no textual evidence for leadership quality, it is mandatory.Choose people with self-driven goals and motivated candidates, who can earn the loyalty of employees.

Hiring great talent, especially in the primary stages

Problem: 

Startups face a regular problem of the inability to attract talent. During the primary days, there is no attractive profile for a startup. Also, the team is full of amateur talent and the startup does not have smooth-functioning HR personnel. The management is not using ATS (attendance management system), and that causes confusion in the role, one is sharing and the imperfections continue.According to a study, most startups fail because of a lack of talented staff. 

Solution:

1) The most productive way is referrals. Let the employees collect the people's names they need to work. It is a direct way of increasing the staff in a startup. Also, make sure that employees are rewarded for referrals.

2) Give attention to hiring and investing in people, then you can get the right person for every role. 

3) Invest in specific tools for particular candidates, manage them and give them candidate satisfaction.

Creating strong policies

Problem:

Startup is a top tier in producing new products but they lag in drafting communicative policies and launching them into the market. The startup inhibits its growth by lagging in drafting policies. Many invisible values are worth withholding in an organization such as time off, equal opportunity, and expenses.If employees bind together, it is for the values to withhold and how collaborating increases teamwork in the startup. In case a conflict arises, you can recollect how earlier conflicts have been resolved. 

Solution:

Strong policies can only be created. There are online templates and you have to give your time in meeting your needs. Hire a lawyer to run it to follow the rules. If somebody does not adhere to it, use the laws to punish them.

Transparencies of company policies to employees

Problem:

The laws are invisible until they are broken. 

Solution: 

Present the laws to employees to make them digestible. Direct the employees to policies and tell them which manual the laws are written in. When a law is followed, it is at best communicated. For many companies, laws are present only for the sake of it.

Some questions arise:

1)What happens when somebody does not follow the laws?

2)What steps should be taken by the HR team to completely summarize the laws to employees?

3)Have they been drafted in the interest of the company?

 Regularly find answers to such questions.

Practicing your culture with company growth

Problem:

The rise of myths and assumptions in a startup is a disadvantage

Top management says that defining company values should become the value of the employees.

Pick a routine that is a feature in the startup; this routine may be followed by a section of the office staff.

Solution: 

If a manager does not define a company culture, it will be followed by employees alike. They will make the culture theirs.Culture is not just posters and office memorabilia or stickers on the walls. They are the set of values each employee needs to agree upon. Try your best and understand the candidates to see whether they are strong contenders for high performers.Give rewards to employees, when they perform better.

Accept termination with grace 

Problem: 

In such startups in the long run, there will be regular employees who have found the purpose. In small companies, employees tend to be closer. So when there is a quick resignation it creates a grudge in the mind of management. Whenever an employee leaves a company, the whole staff becomes uncomfortable.

Solution:

There are a lot of ways to break the ice during a resignation. Show them honor as it is a part of the organization to lay off and rehire fresh talents. Keep honesty on why he is shown the way out.Sometimes he/she is leaving for a better opportunity and those benefits him for taking that a well-wishing is all he/she needs

Efficiently managing time-consuming HR routines

Problem: 

HR tasks are redundant such as tasks like follow-ups, coordinating interviews, doing paperwork, etc. The time is used to plan a competitive edge.

Solution:

Efficient processes can be achieved by HRM software. Companies are reluctant to buy software until it is necessary. That is a sin.For end to end recruitment activities, smart tools like Automatic Tracking Software are used to automate the hiring process.Time is invested in crucial tasks like making a strategy and aligning employees with the startup's vision. Staff should be given time to familiarize themselves with HR software. So they can easily bring results.

Onboarding new hires

Problem: 

Onboarding is not given any serious concerns in startups. They casually treat the onboarding process as giving laptops to employees and taking them to a casual lunch.

Solution: 

Know the objective of onboarding and make them understand the need for onboarding. Anyway, startups do attract a lot of referrals. If onboarding is not in place, these referrals dodge away as it does not go far more than just an inquiry.So install Onboarding software in startups to bring solidarity into the hiring process.

Employees should know about the product, process of working, and structure should be in place and plan strategy. The time present is to be converted into productivity by HRMS software.