What are the biggest HR Challenges a Start-Up faces?

We talked with Frances Clements, a Senior Partner at Mclean HR. Fran is an HR Generalist with over 20 years experience across a range of industries, in recent years specialising in aligning HR strategy with business objectives for rapid-growth SME’s. She provided us with some insights on the biggest HR challenges start-ups are facing.

A successful start-up will be required to get up to speed on a wide range of business activities, at the same time as progressing the core business function and working towards key investor led milestones.

The first HR objective is likely to be a matter of compliance. The UK employment law system is complex, and there are many obligations that an employer must meet, simply to be able to engage an employee in work. They must prove they have completed appropriate “right to work” checks, that they have a pension scheme in place, that they have provided a statement of particulars of work and so on. This is only the first step towards HR compliance and reducing legal risk, so it is no wonder that complying with ever changing employment law is a major concern for a start-up.

However, this is not the only challenge. Building a high performing team rapidly is often an early priority for a new business. To do this, a start-up must looks at how to attract a high calibre of candidate in a competitive market, and how to build a fully functioning organisational structure that can be developed over time. The team norms that are established at the very start of a start-ups journey plays a vital role in setting the company culture. Finding ways to encourage open communication, trust, critical thinking and mutual support will serve the business well in the future. This is not always easy and another important HR objective in a start-up environment can be settling minor conflicts to ensure these do not become bigger problems.

A small team can be intense and the pressures can loom large. Job roles are not always clearly defined and a degree of flexibility is required of all employees. Giving people an opportunity to raise any concerns they have can help iron out any teething problems a new business may have. A small team can be heavily affected by employee discontent or absence, in a way that larger organisations are not. A long period of sickness absence can be a real challenge in a small company and managing this effectively from an early stage is vital to avoid legal risk and to ensure the individuals are appropriately supported to be able to return to work as soon as possible.

Mclean HR is made up of a small team of experienced HR professionals. After working for many years with small businesses they have gained valuable insight into the HR needs of a start-up at different stages of growth. With this experience, they have introduced 3 packages specifically for start-ups, HR Set Up, HR Now, and HR Start Up +. Whether the aim is to get organised from the get-go, navigate HR compliance issues, or simply to free up time to focus on other business priorities, Mclean HR can support your business. For further information on our HR services for start-ups, please visit their website.