HR Outsourcing for Start-ups in India: A big step towards your culture of success

HR Outsourcing for Start-ups in India: A big step towards your culture of success

Start-ups are typically designed to work on a constricted budget, focusing most of their resources on primary processes like manufacturing or services, sales and marketing. Human Resources account for the least attention from business promoters, and it manifests itself as higher attrition rates.

None of the Start-ups we spoke to was happy with this higher rate. After all, who likes to see his employees move on after a few months of training and investment?

Almost all HR problems faced by Start-ups are a direct result of lack of proficiency of their internal HR team. You may be the best of the lot from an IIT, your co-founder maybe a marketing whiz kid and bring in sales with his glib demeanor but when it comes to Human Resources, you either are informed or are a piece of furniture.

Outsourcing their HR requirements can help these Start-ups tackle talent and workforce issues efficiently. Not only does it save money but also builds an environment of trust within the organization, controlling a potential exit of employees due to miscommunication and resultant frustrations. Even your most trusted employee has questions regarding his salary, position and sundry other things but in the absence of a listening board, he is helpless and vulnerable to the constant onslaught of mails from Naukri and Monster and other consultants in his secret Gmail account.

In the words of Steve Jobs, Former CEO of Apple, “When you’re in a start-up, the first ten people will determine whether the company succeeds or not. Each is 10 percent of the company. So why wouldn’t you take as much time as necessary to find all the A players? If three were not so great, why would you want a company where 30 percent of your people are not so great? A small company depends on great people much more than a big company does.”

Ask any startup founder to rank their greatest challenge and human resource is right there in the top 5! The Human Resources department plays the critical part of identifying and hiring the right talent for a start-up. Once onboarding is completed, retaining talent, giving them a competitive but collaborating environment and ensuring a regular supply of engaging high quality assignments should become the focus of the HR division.

Unfortunately, identifying a challenge will not solve the problem. Tackling any challenge needs your direct involvement of time and resources. Both entities come at a high premium in a startup. Moreover, challenges come thick and fast in this kind of eco system, so trying to crack all together amounts to sacrificing the core business! Catastrophe calling…

Time is your greatest asset. Prioritize your schedule so you have enough time to bring your ideas to fruition. Before you brace yourself for the next challenge, ask yourself, “Does this really need the time I could give to expand my ideas?” More often than not, the answer will be one you already know: NO.

Tactical HR issues like recruiting and retaining and project management can be easily resolved by outsourcing HR services to a reliable vendor. Not only will this save time for your core business, you’ll also have extra cash in hand to burn on your marketing activities. Or perhaps bring in a brilliant co-founder who desperately wants to chuck his current job but is caught in the spiral of fulfilling his ‘monthly payment’ duties. Yes, you can buy razor sharp focus with that saved money.

In an intensely competitive market, startup founders can ill afford losing mind and money over tactical HR problems. Outsourcing Human Resources is putting the best foot forward towards a culture of success.

Drop a line to us for a presentation on how Open Mind can be your partner in the process of productive HR transformation.