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HR Challenges for New Businesses

So you’re starting up a new business.  How exciting!  There’s nothing quite like bringing your dream to life, and nothing quite so challenging.  There are so many bricks to lay to build a solid foundation, and near the base of the foundation should be a clearly defined and well executed Human Resources strategy.  After all, your human resources—your employees—are your company’s most valuable asset!

The employees you hire now will play a critical role in the success of your new venture.  You’ll want to make sure you have the right number of employees in the right roles, at a price your budget can sustain.  But where to begin?

Start with these four simple questions:

  1. How many workers will you need?  In thinking about your company and setting up an initial business plan, you probably developed an organization chart.  As a start-up company, your resources may not allow for many positions on this chart just yet, and you’ll likely be filling any staffing shortages yourself.  But it’s good to have a “right now” plan as well as a plan for future growth.  Try to use your early market research to determine the necessary positions at each stage.
  2. What work will these people do?  Once you determine how many workers you need, you should have an idea of what duties each person will perform.  This is where clearly written job descriptions come in.  Job descriptions set up clear expectations of the work to be done, which will help to shield your company and your employees from misunderstandings.  As a new business, your job descriptions may need to be more fluid until you can gauge actual business needs, so consider potential changes as you define each job—and leave room to negotiate those changes.  Some employees will perform best when given a well defined role, while others will be able to work with the flow of business needs.
  3. How will you get job candidates to sign on?  To job candidates, a start-up business can look like a risky move or an exciting opportunity for growth.  Either way, candidates are bound to have a lot of questions during the hiring process.  Be prepared to answer them!  Be able to share your vision for the company’s immediate and future goals, and how market research fits in with your plans.  Tell candidates the specific role their position will play in the company’s success.  Be honest about the exciting opportunities available and any potential challenges you expect, but be sure to affirm your commitment to your company and its staff.
  4. How will you keep employees on board?  Every company has growing pains, and yours will have them too!  This may mean challenges in retaining the staff you worked so hard to bring on.  People don’t always respond favorably to tricky transitions.  Likewise, employees won’t want to stagnate in positions that offer little challenges or opportunity for advancement.  Try to think of ways to keep staff interested, such as incentives and regular pay increases.  It may be cheaper than recruiting and training replacement staff!

Do you need a hand to help you build a strong Human Resources foundation for your new business?  Then look to us at YES! Your Human Resources Solution, Orange County’s premier HR consulting firm.  Our more than 20 years of HR experience can help steer your business toward success in everything from staffing needs, clear job descriptions—even help with the screening and onboarding process .  Contact us for a consultation unique to your business needs!

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