Start-up companies have their own unique niche in the business world. They are generally known to be “non-hierarchic” where execution predominates management. The most important element of execution is managing employees in startups. The hired person(s) may have to assume multiple responsibilities and don various hats. Man-management is critically linked to the success of any start-up company. Failure in this department can lead to the shutdown of the company and end of any entrepreneurial dreams. Let us understand its various perspective.
The most crucial mistake when hiring employees in startups would be recruiting friends and acquaintances because of the comfort and ease of hiring them. Ignoring the importance of hiring a core, solid professional team is put under the carpet. This completely disrupts the working dynamics of the company and shatters the vision. Most friends and relatives are neither competent not committed enough to contribute in a manner which scales the business to new heights. Personal relationships hinder them from performing to their optimum as it stops you from giving the correct and critical feedback which might be trifle difficult to swallow.
Hiring the right team
Any start-up company would have obvious financial constraints and intense pressure to perform and generate sustained profitability. This can only be achieved by hiring an enthusiastic and realistic team who share a unified vision and the ambition of achieving realistic goals within specified time limits consistently. It’s extremely important to realize that any start-up company is all about correct hiring and effective marketing.
Management of people risk
Over 50 percent of small business startups die within the first five years of inception. Investigation reveals poor people risk management as the pivotal cause. People are the most crucial and least predictable element of any business. The correct algorithm can increase the company’s odd at success while the failure of the equilibrium spells doom. The first major responsibility of the entrepreneur and his managing team is to ensure that they are successful in establishing a clear vision and the culture for the team to rally behind.
It’s natural to have ego clashes, personality tiffs and disagreements and some rogue members to be roped in. While these cannot be eliminated but they must be effectively managed by the management team to ensure that it does not hinder the company’s goals and vision. Inspite of these undercurrents, they should be able to tolerate each other diplomatically and work in the same direction that is when leadership qualities of an entrepreneur counts in. If unsuccessful, it would lead to loss of key talent and other complications to finally culminate in a huge setback or shutdown.
Mentorship and Growth Opportunities
HR of the startups must remember, in contrast to established companies, money is seldom the motivator for employees of startup-companies. Professional growth in terms of skill, experience and hierarchy, opportunities to push their own boundaries etc are some impetus which needs to be met. This can only be achieved by ensuring proper opportunities to perform spectrum of responsibilities which is backed by proper mentoring, formal training, correct evaluation and correct career graph etc . Failure can culminate in attrition and ultimately collapse of the company.
The people of any startup company is its biggest asset and the competitive advantage. They can make or break the company and thus their right management is crucial.