HR Planning for Startups

January 10, 2019 Written by Oralie Chapman

From securing funding to hiring employees and leasing the right space, there are so many things to handle in a startup business. But what about human resources? Successful startups use HR planning to create HR processes, policies and plans that will help the business meet short-term needs and budgets that are flexible enough to adapt to long-term human resources goals and risks. Doing this can be hard when you know that startups usually don’t have a dedicated HR manager, let alone a team to handle all the human resources needs that come along with running a business. It is common for the entrepreneur to try and handle HR tasks themselves on top of all the other roles they are taking on for the business. When a business owner is juggling many roles including HR manager, there is barely time to handle important tasks like hiring let alone spending time coming up with strategies and placing a priority on human resources as an idea.


HR planning for startups


Whether you attempt to take on HR tasks and planning on your own, or plan to hire an HR manager or partner with a PEO; these are some of things that are usually handled in a human resources department:


1. Creating an organizational design: what positions do you need filled and who will report to whom? Will you set-up teams or departments and how will they be structured? A simple document with the organizational structure will do the trick here.


2. Understanding labor laws: reading up on local and state employment laws relevant to hiring, disciplining and firing employees. Be prepared for 1-9 legal employment verification for new employees.


3. Setting the structure for employee compensation and benefits plans: at what rates will you compensate employees in various positions including hourly pay/salaries plus health benefits packages and retirement plans. Identify your paid time off policies, ensuring that they comply with local employment laws. Will you offer extra benefits like gym memberships and cell phone plan reimbursement? Choose a system for managing and processing compensation and payroll.


4. Creating a hiring strategy: an effective hiring strategy is necessary to hiring the right employees but there are practical tasks that must be handled before you can hire employees like preparing an “offer letter” and relevant employment contracts and choosing a system to store employee data. You should also answer these questions: Where will you advertise? How will you create a great candidate experience? How will you decide who is the right fit?


5. Effective training plan: after hiring the right employees, thorough training is essential to help them do their job successfully.


6. Employee development plan: many employees have career ambitions and goals that they would like to fulfill over time. If you want to retain top talent, the best way to do that is to ask employees about their goals and look for ways that you can help them reach them within your organization.


7. Plan for performance reviews, bonuses and raises: scheduling annual performance reviews is a way to encourage employees to perform at the top of their game by praising the things they are doing well and offering strategies to help them improve in areas of weakness. Will you offer a cost of living raise? Will you offer bonuses for exceptional work?


Partnering with Makai HR


Not excited about human resources tasks? That’s okay; we’ve got you covered through HR outsourcing! When you partner with Makai HR you can get on with the business you are trying to grow while we take care of your employee needs from payroll to taxes, health insurance/benefits and worker’s compensation. You also gain peace of mind that you are in compliance with all of Hawaii’s employer laws (if you’ve ever looked you know that the list is very long). When choosing a PEO to partner with, there are many things to consider including cost, services and technology solutions.


With the cost of doing business in Hawaii at record highs, we know how important it is to keep labor costs in line with revenue. Our plans are priced competitively and include value-added services like time-in/time-out systems. Our three tiers of PEO service plans are tailored to the size of your business and specific needs. We offer a 100% paperless solution which means that your employees can manage their needs through a computer, tablet or phone. We can truly improve your employees work benefits while freeing you up to run your business.


What are you waiting for? Companies who partner with a PEO benefit from 7-9% faster growth, 10-14% lower employee turnover; and they are 50% less likely to go out of business. Contact us today to get started!