The Step-by-Step HR Department Checklist for Startups | BambooHR

Startups have a lot of work ahead of them, and in the rush of everyday business, it can be difficult to take time and establish a solid HR department strategy.

While many small businesses may not see the need for an HR department, it’s a necessary and valuable asset to have at your company, especially if you’re looking to grow. Not only can establishing an HR department early on help keep your company organized while you grow, but it can handle internal issues that are bound to crop up when you least expect them.

Most small businesses and startups have small HR departments that may only have one person on the team (if they have an HR department at all). Even if you have a one-person team in HR, make sure they have experience handling hiring, payroll, benefits, onboarding, and training. Having an HR software for small businesses will help keep you organized and on task as you develop your HR department from scratch.

Before starting your HR checklist, it’s important to establish why having HR policies is important. Setting up an HR department in a small company is about creating policies, plans, and processes to take care of your business’s short-term needs and mitigate long-term risks. Solid HR policies make for a better employee experience and limit your company’s liability.

However, creating HR policies and ensuring compliance with federal laws isn’t just about making it to an IPO or getting external funding. Delivering a great experience advances ROI in other areas, including employee productivity, company profit, and employee experience. Employers that care about their people gain a reputation as a great place to work, attracting amazing talent to their ranks.