1. Heath
Buck
HR for High Growth Startups
Startup HR departments are different:
• They do not have legacy issues to deal with
• They have the opportunity to get everything right
• They will get some things wrong
• HR implemented well can formalise and scale a company whilst retaining the
essence that makes it successful.
• HR implemented badly can leave an organisation a chaos of infighting, lost focus,
and poor returns on investment.
• If people make the difference, your people function is key!
The following pages outline considerations for a startup when engaging HR.
2. Heath
Buck
• Happens
immediately
• Get
HR
infrastructure
in
place
• Cover
HR
regulatory
requirements
Phase
1
Setup
HR
• Happens
during
ini>al
growth
phase
• Focus
on
recruitment
• Ini>ate
onboarding
Phase
2
Support
Growth
• Ongoing
• Might
s>ll
be
in
growth
mode
• Higher
focus
on
reviewing,
retaining
and
developing
talent
Phase
3
Transi>on
to
BAU
HR needs for startups will span 3 key phases:
In each phase, the objectives from the previous phase must be continued whilst adding the new objectives.
Once businesses transition to BAU they will enter a cycle of adjust, review, adjust… This is normal and reflects
the maturing of an organisation and that things rarely stay fixed. An agile organisation will continue a cycle of
review prior to issues occurring.
Phases of HR for a high growth startup
3. Heath
Buck
HR activities by phase
Phase
1
Setup
HR
Phase
2
Support
Growth
Phase
3
Transi:on
to
BAU
Infrastructure
and
Compliance
• Employment
Contracts
• Core
policies
• Payroll
provision
• Pension
provision
• LTIPs
• HR
System
• Background
checking
• Other
Policies
• Job
Descrip>ons
• Compliance
training
• Culture/Values
Induc>on
• Payroll
(monthly)
• Control
processes
• Exit
poor
staff
• Annual
&
ad-‐hoc
remunera>on
processes
• Policy
updates
Value
Added
HR
Ac>vi>es
• Manage
HR
supplier
rela>onships
• Employment
proposi>on
• Interview
training
• Recruitment
support
• Candidate
sourcing
• Management
of
agency
rela>onships
• E-‐Learning
• Performance
Management
• Engagement
strategies
• Reten>on
strategy
• Exit
interviews
• Training
strategy
• Talent
pipeline
• Management
skills
support
• Review
organisa>onal
structure
Many
of
the
above
ac>vi>es
in
“Value
Added”
are
carried
out
between
HR
&
Management.
As
the
business
establishes
itself
the
HR
provision
will
move
from
seng
up
infrastructure
into
value
added
ac>vi>es.
4. Heath
Buck
• Objectives have been separated from tools (e.g. performance is an objective, appraisals are a tool).
• “Compliance” activities must be done, “Added Value” is better but not essential – this will vary between industries.
• There can be ambiguity between “added value” and “compliance” so objectives have been placed in the most likely box.
• The nature of the objective has not been defined (e.g. it is assumed “Performance” means achieving “high performance”).
Objectives across the employee lifecycle
I
AM
RECRUITED
EMPLOYEE
JOURNEY
ADDED
VALUE
OBJECTIVES
INFRASTRUCTURE
&
COMPLIANCE
OBJECTIVES
I
AM
MANAGED
I
EXIT
Paid
correctly
and
on
>me
Systems
&
payroll
access
ini>ated
Conduct
&
behaviours
Remunera>on
at
the
right
level
Performance
managed
Effec>ve
Culture
Succession
Poor
staff
exited
Finds
candidates
Staff
developed
Staff
handovers
Onboarding
Systems
access
Quality
candidates
sourced
Systems
access
removed
Staff
engaged
Employer
brand
managed
Compliance
training
Effec>ve
organisa>onal
structure
Employee
Rela>ons
cases
managed
Management
within
legal
parameters
Lawful
exit
(fair
dismissal
process)
Exit
data
gathered
Quality
candidates
selected
Suppliers
managed
Return
of
company
equipment
Background
checks
People
Strategy
Once up and running, HR support to management over the employee cycle (rather than phases of implementation):
Clear
responsibili>es
for
each
job
Fair
Workplace
5. Heath
Buck
What HR support is needed
Phase
1
HR
Setup
• HR
expert
who
is
also
prepared
to
“get
their
hands
dirty”.
• Must
have
a
broad
HR
knowledge
(HR
generalist).
• Must
ini>ate
low-‐cost,
high
outcome,
scalable
solu>ons.
• Must
be
prepared
to
problem
solve
new
situa>ons.
Phase
2
Support
Growth
• HR
generalist
with
ability
to
recruit
is
key.
• Will
have
the
diligence
to
manage
payroll
processes
and
other
systems.
• Build
in
appropriate
control
processes.
• Add
new
HR
offerings
as
the
company
grows.
Phase
3
Transi:on
to
BAU
• Recruitment
focus
will
turn
to
a
management
focus.
• HR
department
might
need
broader
skill
base
and
different
people
within
it.
• Solu>on
depends
on
size
and
rate
of
growth.
Need
HR
with
the
integrity
to
implement
the
right
solu>on
for
the
business.
-‐
You
will
need
competent
HR
to
get
things
started.
-‐
As
you
grow
you
will
need
to
review
if
what
got
you
there
is
what
you
need
going
forward.
-‐
Interims
lack
the
complexity
of
consultancies,
but
they
are
fully
dedicated
and
the
solu>on
they
provide
will
always
be
custom
fit
for
the
needs
of
your
organisa>on.
-‐
The
money
an
interim
costs
would
not
get
you
the
equivalent
support
at
a
consultancy
as
they
have
overheads
an
interim
doesn’t.
Usual
use
an
HR
Generalist.
You
can
start
with
a
recruitment
team,
but
they
should
have
the
ap>tude
for
other
areas
of
HR.
Use
a
Generalist
with
strong
recruitment
skills,
or
add
addi>onal
recruiters
to
the
team.
Careful
pure
recruitment
professionals,
other
problems
could
store
up
for
future
(e.g.
inadequate
afen>on
to
reten>on).
Recalibrate
HR
to
a
balance
of
professionals
who
can
maximise
the
performance
of
your
organisa>on
covering
HR
business
partnering,
recruitment,
training,
&
opera>ons
ac>vi>es
(e.g.
payroll).
6. Heath
Buck
Appendix – About the author
Heath Buck Profile
Feel free to understand my background with a check on LinkedIn: hfps://uk.linkedin.com/in/heathbuck
In summary:
• 15yrs HR experience across all sizes of organisation across many different sectors.
• Substantial experiences across all parts of the HR cycle with a focus on unlocking performance delivering commercial value.
• I have received performance awards from over 5 different employers across my career.
• 6-Sigma and PRINCE2 project management qualified.
Well known brands I have worked with include:
• Credit Suisse
• NEST Pension Fund (National Employment Savings Trust)
• Barclays Bank
• Mizuho Corporate Bank
• State Street Bank and Trust
• Ford Motor Company
• Aston Martin
• Terminal 5 Construction, Heathrow
• Join In Trust
• English National Opera
• Trinity Mirror (owner of the Daily Mirror)
In addition I have supported many smaller brands and micro businesses many people will not have heard from. What all my clients
have in common is they appreciate a commercial approach to HR.