When Is the Right Time to Build My HR Team: Part 1?

As someone who has been in the trenches of startups as they’ve created, built, and refined their teams and processes, a large part of my role over the years has been to consider when and how to invest in a people and culture function. On one hand, tangible value isn’t realized in the immediate term, and while the Back to Human approach has gained traction as companies have realized what the idea of culture can bring, this all begs the question: how do companies thread the needle between investing in real, measurable infrastructure while cultivating great, value-driven company culture?

After years of staring down this riddle, I can confirm that, in spite of there being no one-size-fits-all answer, here are 5 tried and true steps to set you down the path of excellence (and we can help!):

1. First things first, get organized. Identify a place or HR tool to store and consolidate all employee data and information in one place, and even better if this tool has some employee self-service or automation capability to save you the headache of manually managing this yourself. Trust us: it is never too early to KonMari this one.

2. Define your company’s values, culture statements, and expectations of your team (i.e. a handbook). Give some thought to the values that make you YOU and set expectations for your team to embody this vision. This key first step sets the foundation for finding other like minded creators that help to bring your shared vision to life and ensure some guardrails simultaneously. Think of this as planting the seeds of culture to reap your talent brand as you continue to grow.

3. Create a standard around hiring. It’s not enough to find someone who wants to work with your team. After all, anyone who’s ever been married will say that dating and getting married are the easy part! At this point in growth, teams have to get good fast on a process to thoroughly assess the right people for your scaling team, one that optimizes candidate experience, with a keen (and self actualized) understanding of your company’s identity. That last part is key: be clear on what you are, and what you aren’t (yet). As I talked about in my own startup journey, every hire now is a crucial utility player in your company’s growth, and there is talent out there looking for who you are, and not what you hope to be. Louder for the people in the back: CRUCIAL.

4. This one is not fun, but equally as necessary: at this stage it becomes increasingly important to consider compliance in what way you’re classifying your team for taxation purposes. The IRS cares a lot about this one and can, and will, fine you accordingly. Their rules, not mine!

5. Contracts or any other legally binding employment documents: protecting your business is important at any stage, and with your people, it starts with how you set the terms. Giving some thought and attention to your employment contracts ensures consistency and peace of mind in effectively managing these mutual expectations. File this one under little problems that become big problems if left unaddressed.

We think we’ve given you enough to noodle on for now. Tune in next time as we talk about building upon this work as you scale your team and business.

Want to learn more about how Sproutwise can help in your path to People growth? Give us a jingle at info@sproutwise.com.