3 HR Tips for Entrepreneurs

Many entrepreneurs, or others who start-up a company, don’t consider HR until they are well into running their business. HR is an essential function for any well-run company, so the earlier the founders think about the HR needs and operations within their firm, the better off they will be. While it’s not imperative a founder or CEO know every detail about HR, it is important that they have a basic understanding so they can employ the correct people early on. Here at Online Human Resources, we put together a list of 3 tips to help entrepreneurs succeed in fortifying and operating their HR department.

1. HR is incredibly complex, and litigious.

With health-care laws, labor laws and the like, varying from state to state, and evolving all the time, it’s nearly impossible for anybody to keep up with all of that information. Anybody but an HR pro that is. So before you begin hiring a full staff, hire an HR person for your team. They can ensure that everything from the interview, to benefits, to letting someone go, is handled correctly, and will not get you sued. Paying an HR person salary is almost always a less expensive option than being on the receiving end of a costly lawsuit.

2. Be honest with your employees about your business, and its goals.

Some founders struggle with what exactly to let employees in on when it comes to the company. It’s a fine line between over-sharing, and keeping employees in the dark. When deciding what information to let employees in on, there are a number of factors to consider.

The most important information to share with employees is things related to the companies goals and strategy. Most employers have no problem filling employees in on the basic information regarding what a company is about, but when it comes to the strategic “why” end of things, they keep tight lipped. This is not a wise move, because filling employees in on strategy gives them the motivation and information necessary to better prioritize and perform.

Another important factor to consider is when to fill employees in with this information. Too soon and it may cause them to prematurely adjust their priorities, too late and it may leave them feeling out of the loop. All of these factors will be best determined by a seasoned HR professional.

3. People are an invaluable asset, choose them wisely.

No matter what it is that your company does, your staff is vital to your company’s success. This is why selecting the right candidates for each position is a hugely important decision. When selecting your initial staff members remember to keep in mind factors other than qualifications.

While it’s obviously necessary to hire someone who knows what they’re doing, that should not be the only deciding factor. Personality should be a huge component when choosing employees. Having an extremely qualified employee on your team, who just doesn’t fit in with anyone else’s personality or work style, will not be pleasant for anybody.

Once you have the right team in place, one that is qualified, and well-matched, you put your company in a position to grow, perform, and be stable. Without those 3 things, success will not come. Without a staff that is talented, qualified, and a good match, your company will most likely not succeed.

If you or anyone you know is looking to start their own company, make sure that you, as an HR pro, stress to them the importance of HR in the workplace. Most entrepreneurs come out of the gate with a lawyer, accountant, and whatever other staff they deem necessary. It is the opinion of this HR professional, that a qualified HR pro should be on that list of must-have staff members for start-ups.  Whether outsourced, or hired locally, HR pros are becoming more and more essential to have on your staff. All the free tips in the world will not amount to having an HR professional on your team.

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