Businesses these days have become very competitive and belligerent, and are always looking to decrease costs. And in doing so, they end up ignoring certain significant factors. This is particularly true with startups, which typically save costs by pumping a lesser amount of money in human resources. In several cases, the HR department is nearly non-existent. Recruitment for startups too becomes a massive challenge.
Be it an industrial behemoth, a mid-sized company or a startup, at the end of the day, is run by a ‘human’ machinery. But HR management is a very tough task. In an organization, the HR department is accountable for implementing strategies and policies relating to the management of individuals. It helps in staffing, mentoring, learning and development, payroll, and keeping a track of the policies and various procedures in the firm. Many startups wind up giving these responsibilities to an office administrator, who may or may not be equipped to address issues that necessitate a human factor, such as executive recruitment. As much as recruitment goes, a startup can ease the burden on itself by using recruitment agencies that offer low-cost recruitment or new executive placement agencies.
A striking example of this was a technology startup in India. Though it began with just four employees, the business grew in just six months. Hiring more resources proved a challenge. The CEO, wanting to avoid hiring a bad apple, decided to outsource staffing to an executive search firm in Mumbai. In just a month, they had a complete team in place thanks to the hiring agency who offered them expertise for technology hiring solutions.
What’s interesting to note from the above example is that having an executive recruitment firm is as vital as employing the services of a law firm or an accounting firm. Not only does this provide you low-cost recruitment solutions, it enables you to save a ‘seat’ in your office, as the hiring is taken care off by the placement agency. Speaking of office space, some agencies also offer plug-n-play offices that allow you to save money, especially when you are bootstrapping a startup.
A happy and a contented workforce allows a company to scale heights as it increases productivity. Thus, it is imperative for a startup to focus on human resources and recruitment.