It is a common misconception that establishing proper employee management and having a strong HR department in a startup company aren’t crucial parts of launching a successful business. The reality, hoverer, suggests otherwise. Any experienced company manager will tell you that these two aspects are among the most important and perhaps most challenging sides of having a functional company.

Future clients are important, but the employees are definitely the most valuable assets of your startup, which is why you need to dedicate enough time to developing proper human resource management and employee management right off the bet.

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Human Resource and Employee Management

Employee Management

As we already mentioned, the CEO and managers are vital people in any company, but the employees, and we mean all of them, are what makes your startup machinery move forward. You can have the most brilliant people at the top, but if your employees haven’t been selected and managed wisely, your business won’t last long.

Employee Management consists of 5 main aspects:

  • Selection – Choosing the right people for your team. This makes all the difference.
  • Monitoring & Measurement – The way you are determining employee performance.
  • Interaction – The basis of any relationship is proper communication among team members.
  • Reward – The way you reward your employees for achieving excellent results.
  • Discipline – The way you deal with bad performances of your employees.

Human Resource

Startups are typically flexible and fast-growing businesses that need to be as pragmatic as possible at any given moment. The teams usually grow in numbers rapidly, but also numerous layoffs may take place on a monthly basis, which is why you need to have properly structured human resource management to deal with this aspect of your business.

In an old-fashioned business landscape, the HR department is usually perceived as fun-killing “corporate” wet blankets who hinder innovation and ward off flexibility. This is no longer the case. All modern startups (well, the successful ones) know how important developing strong and effective HR management actually is.

Toxic work environment, confusion, and disarray almost always negatively impact the morale, motivation, and retention among your employees. The HR department is there to make sure this doesn’t happen.

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