Rayhan Aleem, Alpha Pro Partners’ Founder, explains how to avoid common HR mistakes that will cost the startups time and money.
Start-ups face many unique challenges that can affect the growth of their business, and one of the biggest is managing human resources. It’s likely that you don’t have the support of a dedicated HR department in the early stages, making it difficult to handle the varying, often complex tasks which are part of this crucial function. You may not even realise how much HR matters as a start-up or exactly what it involves.
It’s not only solopreneurs and smaller companies who make mistakes; there is a worrying number of mid-sized businesses, usually those expanding fast, that don’t have the necessary policies and procedures in place. Unfortunately, neglecting this area can have severe consequences and the risks increase as the problem continues.
Here are some of the main pitfalls and how to tackle them:
• Hiring
Recruiting the right talent is a top concern for any company, and it can be especially tough for start-ups in a competitive market. Give yourself the best chances by implementing a structured hiring process that includes having clear job descriptions, outlining a comprehensive interview process, and completing proper reference checks. Don’t fall prey to panic and hire someone just because they can start immediately – you will only lose time and money replacing them. Also, keep an open mind and consider people who don’t necessarily have every skill you’re looking for right now. It can be far more cost-effective to train people on the job if they have other essential skills and demonstrate a willingness to learn. Cultural fit is another key factor influencing future performance.
• Onboarding
Once you hire someone, be prepared to spend time onboarding and mentoring them. You might be tempted to take a step back, but this is a crucial moment to explain how things work and what your expectations are. Give people time to familiarise themselves with polices and procedures and to learn the ropes. By making them feel welcomed and supported from day one, they are far more likely to stay and help you achieve your goals in the future.
• Engagement
So much of attracting, retaining and developing staff is about culture and engagement. According to Gallup’s State of the Workplace 2022 report, only 21% of the world’s employees feel engaged. Moreover, employees who are not engaged or who are actively disengaged cost $7.8 trillion in lost productivity. When you’re starting out, think about the culture you want to create, what values you are trying to instil, and how you will share them with others. Effective communication is vital to keep people motivated. Make sure people feel comfortable giving feedback and know how to report any concerns. Even if team members are remote, there are many digital communication channels you can use so people can collaborate easily.
• Objectives and appraisals
Goal setting and appraisals benefit both you and your staff. Setting measurable and attainable objectives gives them a strong direction and helps to strengthen your position when individual objectives align with the overarching company goals. Checking in with scheduled appraisals allows you to assess what has been achieved and any issues or gaps that need addressing before they become a problem. It also lets you identify any training that may be needed. Manpower found that 93% of millennials prioritise skill development, expecting employers to provide the necessary support to reach their potential. Make professional development part of performance management and always celebrate people’s success. When budgets are tight, training can take a backseat, but mastery is a must for maintaining productivity.
• Compliance
The complexities of the UAE’s HR laws can be hard to keep up with, often resulting in unexpected fines, legal ramifications, and reputational damage. Make sure you know what the legal requirements are, or outsource your HR to a professional. Key areas to comply with include employment contracts, wage payments, visa applications, health insurance, working hours, recording annual leave, discrimination, and workplace safety. These rules are in place to protect you and your employees.
