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Starting a Business? How to Operate Without HR

For new business owners, hiring a human resources specialist may not be viewed as a cost effective move. It may seem unnecessary to hire a HR specialist when you only have a handful employees and limited funds. It can be difficult for startups to justify hiring a non-revenue generating employee at such an early stage. And depending on your situation and specific set of skills operating without HR may be a breeze. So, starting a business? Here’s a few good tips on how to operate without HR.

Starting a Business? How to Operate Without HR

Know the Law

Your company must be able to navigate legal requirements and legislation. Legal compliance typically falls to HR and it may be their most important task. The laws can be difficult to understand and keep up with, especially when you are new to the game. Without the expertise of HR, businesses are vulnerable to compliance and employee issues. You risk getting sued. To stay well informed and up to date, hiring an HR consultant or corporate attorney may be the best move you can make.

Develop Consistent and Effective Procedures

It is HR’s responsibility to make sure proper policies and procedures are implemented and followed. Informality may work initially when you only have a handful of employees, but as your company grows, as does your need for established procedures. The more employees you hire the more confusing it will be if rules and procedures are not in place and maintained. Take the time to establish clarity and consistency from the start.

Hire the Right Talent

When you only have a few slots to fill, make them count. Consider hiring individuals who can take on several different roles. They should have the skill set to fulfill their own assigned duties as well as the ability to assume leadership, administrative, and developmental roles. Don’t just hire your clone though – seek out professionals with whom you can trust to bring something new to the table.

Delegate and Outsource

You will need to rely on others to effectively manage your business. Hiring a good team is crucial when you must delegate a wide range of duties. If this cannot be accomplished in house, you may need to consider looking to third party agencies that specialize in HR. They can immediately fill your need for sufficiently trained employees.

If you;ve got any coments or questions, about How to operate without HR, fire away in the comments below.

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One Response to Starting a Business? How to Operate Without HR

  1. Tony November 21, 2013 at 2:54 pm #


    I believe the best solution for any SME is to outsource their HR. Employment Law is a potential minefield and when one reads of cases against employers in the majority of instances they are penalised for not following the correct procedures.. Their are a number of providers out their who for a small monthly fee will act as your HR department. Some of them even indemnify you against coasts involved in disputes if you are using their services. To me it is money well spent.

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