Essential HR Steps for Start-ups After Fundraising Success
Congratulations on raising your first significant round of funding! You’re probably wondering - what’s next? As you embark on this exciting new phase, it's crucial to address the HR perspective. Here are key actions to take:
Prioritize HR Fundamentals: Establish essential HR elements such as pay ranges, work hours, benefits (e.g., paid time off, 401(k)), equity/stock options, offer letter templates, and job descriptions.
Build Your HR Tech Stack: Invest in a comprehensive HR technology stack that includes a PEO or HRIS, ATS (Applicant Tracking System), payroll, and benefits system. Consider utilizing Rippling, a platform that covers all these needs.
Determine Pay Cycle: Define your pay cycle(s) – weekly, semi-monthly, or monthly – ensuring clarity for your employees.
Establish Hiring and Recruitment Process: Develop a streamlined hiring and recruitment process, outlining stages, interview procedures, background/reference checks, and necessary agreements (IP, NDA, etc.).
Create an Effective Onboarding Process: Design an onboarding process that includes essential forms such as Form I-9, W4, and other required documentation.
Develop an Employee Handbook: Craft an employee handbook that outlines key policies, including a code of conduct, technology usage guidelines, anti-harassment, and anti-discrimination policies.
Implement Performance Management: Establish a performance management schedule and system to set expectations, track progress, and foster employee growth.
Conduct a Compliance Audit: Ensure compliance by conducting a thorough audit, ensuring adherence to federal and state laws and regulations. Consider seeking guidance as federal laws become applicable with increased headcount.
If you find these tasks overwhelming, Encompass HR offers a cost-effective and reliable solution. Rather than hiring a full-time HR team member, we can assist you in implementing these systems and provide tailored recommendations based on your current growth phase.
Taking proactive steps now to build a solid HR infrastructure will set the stage for long-term success, enabling your start-up to thrive. Contact Encompass HR today to simplify your HR journey and focus on your core business goals.
