The Complete Guide to HR Basics for Tech Start-Ups

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As a tech start-up, it’s likely that you have a lot of brilliant ideas to bring to life in the digital age. Whether it’s a great product that could disrupt the market, or a service that will revolutionise how people do things, we know that you’re busy building the next big thing behind the scenes. However, your success doesn’t just rely on your product or service; it also relies on the people who make it happen. This is where HR comes in. 

HR, or human resources, is an essential function of any business, and for a start-up, it can mean the difference between success and failure. That’s why in this guide, we’ll be discussing the key HR basics that you need to know as a tech start-up. 

Recruiting the Right People

The first step to building a successful team is recruiting the right people, with the skills you need to drive your new technology into the future. But how do you find the right people for your start-up? One way is to leverage your network and industry contacts. You can also post job vacancies on popular job boards, but it’s important to write an engaging job description that appeals to the type of person you’re looking for. 

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One of the biggest mistakes companies can make when it comes to HR is not realising that good practice starts before you’ve recruited anyone. Once you’ve found the right candidates, it’s vital to ensure that you are not discriminating against any candidate on the basis of their age, race, gender, religion, or sexual orientation. You should also be mindful of unconscious bias and ensure that your selection process is fair and transparent, as this shows potential employees that you are a great company to work for from the very first interaction.

Onboarding and Training

Now that you have the right people on your team, it’s important to onboard them effectively, and HR will play a big part in this. Not only does onboarding involve providing a comprehensive contract that covers business rules and expectations, but it also means introducing staff to your company culture, values, and ways of working, while providing them with necessary training to enable them to perform their roles effectively.

This could involve training on your product or service, as well as your systems and processes, but it also means outlining your expectations around how they should work with other colleagues, and the disciplinary procedures that are in place if things don’t go as planned. This is the best way to establish your policies right out of the gate and reduces the risk of your company ending up in an employment tribunal. 

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Performance Management

Performance management is a process that involves setting goals, providing feedback, and evaluating performance. This is an essential aspect of HR, as it enables you to ensure that your employees are working effectively and meeting their objectives.

To implement an effective performance management process, you should set clear goals and expectations, provide useful feedback, and hold regular performance reviews. You should also be prepared to provide support and guidance to help your employees improve their performance, especially if it may lead to a formal improvement plan or written warning. 

Compensation and Benefits

Compensation and benefits are an important aspect of HR, as they can help you attract and retain the right talent. When setting compensation and benefits, you should consider the market rates for similar roles, as well as the skills and experience of your employees.

You should also consider the benefits that are important to your employees, such as flexible working, health insurance, or stock options. By offering a competitive package of compensation and benefits, you can attract and retain the right talent from day one and set your business up on the right foot. 

Understanding Your Legal Obligations

When it comes to running a start-up, there are a number of laws that you’ll need to follow, or at least be aware of. Employment legislation can change frequently, so it’s important to keep up to speed and ensure training is given to staff on the varying regulations governing businesses. Legislation covers all areas of running a business, but there also some lesser known regulations that are still important to be aware of, like TUPE – you might be wondering, what is TUPE?

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TUPE, or the Transfer of Undertakings (Protection of Employment) Regulations 2006, is a set of regulations that protect employees’ rights when the business or service they work for transfers to a new employer. TUPE applies to situations where a business or service is transferred as a going concern, or where a contract is assigned or outsourced.

If your start-up is acquiring another business or service, or if you are outsourcing a service, you will need to ensure that you comply with TUPE. This means informing and consulting with employees, providing them with the necessary information about the transfer, and ensuring that their terms and conditions of employment are protected.

Ultimately, for any start up, HR is an essential function that cannot be ignored or underplayed. By knowing these key basics, including how to successfully recruit the right people and onboard effectively, and understanding your legal obligations, you can attract and retain the right talent while avoiding the risk of an employee making a claim for unfair treatment.