Does start-up need HR policy?
Many of the times, start-ups or entrepreneurs feel that there is no need to have an HR Policy at the initial phase. In most of the cases it has been seen that start-ups generally function without any formal “Human Resource” policies in place. After all, for a new business, it is critical to focus on business concerns at hand. Generally, entrepreneurs put off the task of writing HR policies.   But clearly written HR policies has its own importance even when the business is in the initial phase.  Right from a start-up to multi-million enterprise, the need for a human resource department & policy is very essential and undeniable. It is the one that deliberates procedures, defines work culture and code of conduct. Having HR from an early-stage help business to be organized and stable throughout the progress and growth. Also, it helps to create sense of accountability and answerability while addressing key issues. It is not necessary to have detailed policies, a very basic/brief policies can do its best initially.     Let’s understand in detail an importance of HR policies for a start-up and need of having an HR department;
  • It enables start-ups to save valuable time and resources on disputes and potentially legal cases.
  • Absence of a policy results in low employee morale, productivity and increase risk of legal penalties.
  • A defined policy binds every employee in the business and helps to execute it fairly and consistently across the organization.
  • Clearly defined Job descriptions prevent misunderstanding between employer and employee related to responsibilities and obligations.
  • Also, it helps to maintain discipline in the workplace.
  • To maintain payroll and other accounting stuff with ease so that talented employees can be retained.
  • Delivering a great experience advances ROI in other areas including employee productivity, company profit and employee experience.
  • Even if you have a one-person team in HR, it helps start-ups to be organized from the very beginning which later eliminates many problems during expansion or growth stage.
  • Implementing HR policies simultaneously once you’ve decided on them, it can effectively eliminate confusion and communicate the need for these policies to employees in one go. It reduces the chances of negative impact and maintain your start-ups culture from the beginning till the long-term.
  Thus, start-up must have HR Policies as it helps in creating a consistent and fair environment in start-up. Once it implements policies needed for short term only in the initial phase, it can later expand its scope and introduce new policies based on the requirement because once you have policies, practices and structure in place, chances of resistance of employees towards new policies are comparatively low. Myhrpolicy is an online platform which provides ready to use and easy tp customize HR policies for SMEs and Startups.

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