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7 Key Steps for Managing Human Resources in a Startup
Safira Adnin
September 6, 2024

In startups, managing human resources (HR) is often overlooked, especially in the early stages when the focus is on building the product and driving sales. But if your team is one of the most important assets your company has, then managing those people effectively becomes essential for long-term success.

Think of it like managing finances—when you manage your team well, they become long-term investments that contribute to your company’s growth. So how can a startup begin to create an effective HR management system? Let’s walk through the key steps to building an HR system that will help your company grow.

What is HR Management (HRM)?

Simply put, HRM is a system designed to manage a company’s workforce—everything from planning and recruiting to training and developing employees.

It goes beyond just hiring and paying employees. HRM involves nurturing your team so they can grow alongside the company, fostering a work environment that enhances productivity and job satisfaction. In a nutshell, HRM is all about managing the most critical part of any company—its people.


1. Planning Your Workforce

The first step to good HR management is planning. It sounds basic, but many startups skip this part, thinking they’ll figure it out as they go. However, planning helps ensure you have the right people in the right roles when your business needs them most.

Why is workforce planning important?

  • It helps you anticipate future staffing needs.
  • It allows your HR team to proactively source the right talent.
  • It ensures you can plan training programs that help employees grow.

How to start planning:

  • Map out your current team: Who’s already on board? What are their skills, qualifications, and compensation?
  • Forecast future needs: Where is your company headed, and what roles will be needed as it grows?
  • Build a talent pipeline: Decide if you’ll promote from within or hire externally to fill future roles.

Planning ensures you’re not rushing to hire when you’re already stretched thin.


2. The Recruitment Process

When you think of HR, recruitment is probably the first thing that comes to mind. Finding the right people is key for any company, but especially for startups, where each new hire can significantly impact the company’s future.

What does a recruitment process involve?

  • Preparation: Identify the roles you need, how many people you need, and what your budget is.
  • Sourcing & Screening: Look for candidates using job portals, referrals, or recruiters.
  • Selection Process: Set up interviews and assessments to find the best fit for your team.
  • Hiring & Offering: Once you’ve found the right person, make them an offer and onboard them smoothly.

Recruitment isn’t just about filling roles. It’s about finding people who will contribute to your company’s long-term success.


3. Administrative Functions

HR also handles important administrative tasks that keep the company running smoothly. This part of HR ensures that both the company and employees know their rights and responsibilities.

Key administrative tasks include:

  • Employment contracts: Making sure every hire has clear, detailed agreements.
  • Employee benefits: Managing salaries, working hours, health coverage, holiday allowances, and more.
  • Payroll and tax: Handling payroll and making sure taxes are correctly calculated and paid.

These administrative functions ensure that everything is legal and employees are treated fairly, which is critical for a well-run startup.


4. Keeping Employees Engaged

Keeping employees engaged is one of the most important things you can do as a startup. When employees are engaged, they’re more productive, they stay with your company longer, and they bring more energy and ideas to the table.

How to engage your team:

  • Onboarding: Make the onboarding experience welcoming and informative so new hires feel part of the team.
  • Employee recognition: Simple gestures like thank-you notes or public shout-outs from managers go a long way.
  • Focus on mental health: Keep an eye on how your team is feeling, and offer support when needed.

Happy, engaged employees are more likely to stick around and help your startup succeed.


5. Learning & Development (L&D)

Learning and development is crucial for growing your team’s skills and filling any gaps you have. It’s also a great way to save on recruitment costs by upskilling your current employees instead of hiring new ones for every need.

A simple model for learning and development is the 70:20:10 framework:

  • 70% from on-the-job experiences: Employees learn from doing their day-to-day tasks, observing others, and taking on new challenges.
  • 20% from interactions with others: Mentoring, coaching, or peer learning.
  • 10% from formal training: Attending workshops, courses, or training sessions.

This model helps integrate learning into the everyday workflow, making it easier to develop your team’s skills while they work.


6. Performance Evaluation

Performance evaluations are a great way to give employees feedback and help them improve. They also help you identify who is excelling and who might need additional support or training.

What should you evaluate?

  • Goal achievement: Is the employee meeting their targets or KPIs?
  • Communication skills: How effectively are they collaborating with their team?
  • Teamwork: Are they contributing positively to the team’s goals?
  • Cultural fit: How well do they align with your company’s values and culture?

Performance reviews ensure your team is aligned with the company’s goals and that everyone is working towards the same vision.


7. Building Your Employer Brand

Employer branding is about how your company is perceived as a place to work. A strong employer brand helps you attract top talent and retain the employees you already have. It’s not just about offering competitive salaries—it’s about creating a workplace people want to be a part of.

How to build a strong employer brand:

  • Refresh your job listings: Make sure they’re engaging and reflect your company culture.
  • Showcase company culture: Use social media to highlight what makes your company a great place to work.
  • Share employee stories: Showcase stories of employee growth and success within the company.
  • Collaborate: Partner with other companies on events or strategic initiatives to raise your profile.

A strong employer brand can be one of your most powerful recruitment tools, helping you attract the best talent in the industry.


Why HR Management is Important for Startups

You might wonder, “Does my startup really need all this HR stuff?” The answer is yes. Good HR management helps your company grow by making sure your team is aligned, motivated, and equipped to help you achieve your business goals.

It also helps prevent problems before they start. When you have a clear system in place for hiring, engagement, and performance, you reduce the risk of miscommunication, burnout, or high turnover.


Conclusion

Managing your HR effectively can make all the difference in the growth and success of your startup. By planning ahead, recruiting the right people, engaging your team, and continuously developing their skills, you create a strong foundation for your business.

At Glints, we specialize in helping startups like yours build strong teams that drive growth. Whether you’re looking to hire or develop a recruitment strategy, we’ve got the expertise to support your HR needs. Reach out to us to learn more about how we can help you build a winning team.

Build your borderless team with Glints today

Glints TalentHub is our complete talent solution that covers all aspects of talent acquisition, management, and development. Our team can help you access the extensive talent pool across Southeast Asia and build great teams quickly and affordably. Simply schedule a call with us and our dedicated experts will be thrilled to guide you in your journey towards building a borderless team.


This article is brought to you by Glints TalentHub. Leading companies are actively building their borderless teams in Southeast Asia, Taiwan, and beyond. However, the prospect of going borderless can be daunting due to complex regulations and cultural ambiguities. With Glints TalentHub, you’ll have a dedicated team of in-market legal, HR, and talent experts by your side at every step of the way.

Glints TalentHub offers an end-to-end, tech-enabled talent solution that encompasses talent acquisition, EOR, and talent development. We empower businesses to leverage the strengths of regional talent efficiently to build high-performing, cost-efficient teams.

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