Important HR Steps for Startups that Attract and Retain the Best People

Walmart’s founder Sam Walton once said, “Always treat your employees exactly as you want them to treat your best customers”. He understood that in order to build a great company that those he hired, from the bottom to the top positions, would greatly determine its success.

Both growing startups and established small businesses may not be ready or have the resources to create a formal HR department. However, they can take steps that achieve many of the same goals as one.

Walton valued his employees and he focused on establishing in his company a culture of success. That began with his hiring the best qualified candidates that is seen in the great company it is today. Once he learned how to attract great hires, he realized that their compensation combined with the positive company culture retained many of them for years — -making the time and effort put into the hiring process worth doing.

A company can institute HR strategies for attracting, developing and retaining the right personnel. As part of the HR hiring process startups and small businesses should consistently follow the key steps that are very similar to those of large companies. They are:

• Creation of the Job Description
• Placement of Hiring Ad
• Review of Resume and Applications
• Conducting Interviews
• Assessing Candidates
• Reference Checking
• Offer of Compensation and Benefits
• Onboarding Process

Establishing an effective hiring process requires some trial and error that refines each of the steps as more is learned. For instance, prior to running an ad, a written job description needs to be created that is consistent with what the ad states. When reviewing the submitted resumes and applications, the individual overseeing this step needs to confirm that the ad is attracting a sufficient number of appropriate candidates. If not, an assessment needs to be made and changes implemented to the prior steps.

It is this consistency and thread through all the above HR steps that increases the chances of hiring applicants who are both well skilled and a good fit for the company’s culture. Some of the steps may require sub-sets that strengthens its part in selecting the right candidates. One example of this may be to add a ten question technical test on the day of the interview. If the technical candidate is unable to correctly answer a determined percentage of the questions, there is no need for the interview to be done — saving valuable time.

The actual interviews should follow a pre-determined script so that direct comparison of competing candidates is uniform and easier. Not only does the interview help clarify their employment history and applicable skills they may bring, it also serves as a way to assess an individual’s people skills and fit into the company.

Reference checks are an important element of assessing a candidate’s worthiness for employment. While many companies provide no more than the candidate’s employment dates, on occasion a very poor candidate will be flushed out. Just simply asking for references may eliminate right away some candidates who have had previous employment issues.

To attract and retain the best candidates, they need to be offered competitive compensation packages within their industry. This is where the absence of an in-house HR department may make the hiring process difficult. One way to get around this is to hire an HR professional who comes with the knowledge and experience of hiring in a particular industry.

There is also HR software that encompasses many areas of the HR function such as Culture Amp, BambooHR, and IntelliHR, among others. Software can be used to set up a company manual and help establish paid and sick leave policies. A professional HR consultant in combination with HR software can provide the services of a multi-skilled HR team of a large company that a startup cannot afford to have.

When transitioning a new hire into the business, known as onboarding, the employer needs to prepare for their arrival by having the position well-structured, basic employment forms ready, and a schedule set up for the new hire to follow for training and to meet other employees. Failing to follow these basic steps of onboarding sets a poor impression on a new hire. Making sure your best employees interface with the new person is very important for setting the best tone of their first days and weeks in the company,

In summary, startups and small businesses should establish a well-defined hiring process that they consistently follow. While their companies may not be ready to create a formal HR department, they can take key steps similar to larger companies that attracts and retains the best people.

Read about the Technology Every Startup and Small Business Can Use