Why SMEs need to invest in HR now

Date: Monday, 23rd July, 2018

An interview with Silicon Valley investor Marc Andreessen in Business Insider this week has revealed what all HR consultancies know too well; setting up your HR function should be a priority and failing to do so can lead to almost certain catastrophe for your business.

This advice is particularly pertinent for startups, who are known for their focus on revenue generation and encouraging their teams to work long hours to reach their financial goals.

Andreessen has made many large investments into businesses within the technology industry – one of the most popular sectors for startups – so we know his advice will be based on high-profile experience with the likes of Facebook, Twitter and Pinterest.

He specifically advises that companies should look to hire a HR leader when it has somewhere between 50 and 150 employees. Sound advice we can definitely vouch for and which should be taken on board by any company hoping to see not only their revenue grow but their team develop and remain motivated.

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“Most new startups don’t have a designated HR manager, and most CEOs lack the proper HR training. Instead, they rely on the company’s grandiose vision or founder’s social skills to compensate for the lack of basic procedures.

“That typically works well enough the first few months, and then the dust begins to settle, and operational holes become evident.”

The advice from Andreessen on the importance of setting-up your HR function is clear – do it before it’s too late. Focus on creating a robust onboarding process, be transparent with your team about the hard work they will be expected to put in and don’t overlook their development.

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Outsourcing your HR function means you can pick and choose the elements you need, such as support with recruitment, legal documents and ongoing support for your team.

Ultimately a business that prioritises its revenue over its people will end up with neither, so biting the bullet and investing in HR will safeguard not only your employees but your overall business functionality.

HR Revolution provide a fully outsourced solution for businesses of all sizes and sectors. We have hands on experience working with pioneering London-based startups to support their business leaders and ensure they are meeting all of the legal requirements for their team.

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