HR processes and documentation for startups

Processes take away the subjectivity in decision-making. And since HR is about dealing with people, subjectivity can be a dangerous thing.

Most startups make the mistake of thinking that they will handle the HR activity on a case-to-case basis in the initial stages, and implement the processes when they are ready to scale.However, when you are growing, there is never enough time to plan, test, implement, rework and finalize processes.

The ideal time to build any processes, even for HR, is when starting up. Processes need not be complex and multi-layered. A process is nothing but a well-thought of way to deal with any situation or activity.

Some of the processes, and therefore the documentation related to the processes, which a startup should define at the beginning of the journey are as follows:

  • Interviewing and evaluation: Working out a process which allows you to interview people with a well-defined objective and evaluation criteria is critical. It also helps provide a template for valuating the candidates, and helps narrow down the choices.
  • Compensation package: A well-designed compensation package not only reflects a professional approach, but also helps employees feel good about their offer. In fact, a well-designed compensation package can also lead to cost savings for the startup. Consult specialists like PlugHR for a startup consulting package.
  • On-boarding an employee: On-boarding an employee is the process of welcoming a new employee into your company. Especially for the first few employees, it is important for you to have a one-on-one on-boarding program. Define a process covering the following
    • A welcome talk/presentation that outlines the vision and aspirations of the company – help the employee feel great about the decision to join
    • Explain the processes that may be relevant, including the areas in which processes that are yet to evolve
    • Present their business cards, and a nicely drafted welcome note
    • Ask if they have any queries and questions
    • Give them clear KRAs and directions on what they are expected to do and what they will be evaluated on
    • Finally, introduce them to the rest of the team highlighting some of their key strengths
  • Performance measurement: This is directly related to the process of setting clear KRAs or Key Responsibility Areas. The performance measurement system should be directly linked to the compensation review mechanism.
  • Feedback and regular interactions: Set a process for regular ‘all-hands-on-deck’ meetings where the founders should share the process, or lack of it, every month. If the progress is not as per plan, this forum should be used to explain how you are planning to adjust the plan so that the company is back on track. This should also be the forum for getting people’s feedback.
  • Exit interviews: One critical aspect that is ignored in most startups is a formal exit interview. When a person is leaving a startup, asking the reasons for the decision can be very informative and instructive in understanding the gaps between perceived expectations and perceived reality. This can be useful in either – the founders setting things right if there were any gaps, or in communicating the expectations right, in case the gaps were perceived rather than real.
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Author: Prajakt Raut

Prajakt Raut is the founder of Applyifi.com, and author of the book for startups - ‘Starting Up & Fund Raising’ Prajakt personal goal in life is to encourage and assist a 100,000 people to become entrepreneurs. _____________ Prajakt is the founder of Applyifi - an online platform that provides startups a 36-point scorecard and assessment report on the venture's investment readiness [www.applyifi.com], and helps them improve their odds of getting funded. Prajakt is also the founding partner of The Growth Labs, a platform where growth-stage companies get sharp, incisive advice from senior professionals and experienced entrepreneurs. [www.thegrowthlabs.in] Before starting Applyifi, Prajakt was the head of operations at IAN, founding member of a leading incubator, and the Asia-Director for TiE (2004 - 2007). Previously Prajakt had co-founded Orange Cross, a healthcare services company, and was part of the founding team member of Idealake Technologies. While in college Prajakt had founded a printing business and has spent over 10 years working in leading advertising agencies. Prajakt’s book, ‘Starting Up & Fund Raising’, helps startups understand an investor’s perspective, and helps them improve their odds of getting funded. The book also helps entrepreneurs understand the building blocks of a business.

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