The five startup HR failures

Let’s be honest startups have a hard time managing human resources because they underestimate its importance. Most startups fail in that category and it becomes a huge challenge for them.

Let’s look at the 5 failures startups go through (Liz Sheffield – 2016).

Failure to provide training and development

As a startup owner, you must implement a development plan for your early employees. This will facilitate employee growth and retention. Provide your employees with mentoring programs, cross-training, in-house classes, and conferences.

Failure to collect and provide feedback

Find innovative ways to gather employee feedback whether their negative or positive, feedbacks will enable you to learn about what’s working and what’s not working. Put a system in place and systematically capture feedback. You must also have a system and process in place to provide feedback to your early employees.

Failure to document policies, process, and performance

Many new entrepreneurs don’t believe that they should start working on their policies, processes, and performance documentation right away. They think that they’ll have time to figure it out and one day an employee asks for the documentation and there are none to show! Create an employee handbook, a diagram that illustrates the flow of how your business works, and a standard, one-page template to document employee performance.

Failure to scale recruitment and onboarding

You will definitely recruit friends and family as your early employees, but as you grow you must understand that this strategy is not sustainable. The onboarding process will become more complicated and you’ll need a plan to recruit, hire, interview, and onboard at scale.

Failure to terminate

Please do not keep your startup-employee #5 relationship on life support, let it go. It sounds harsh but delaying that decision can make for a disaster. You are in business to perform and to meet your investors’ expectations. If you keep that relationship on life support and your investors’ see productivity problems, low morale, and customer issues, you might be the one looking for another startup. Make the termination as smooth as possible, the decision must be prompt, performance-based, and documented.

Employee Relationship

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