Hiring is the most important phase for the startups to launch in very effective and Professional ways . Some impatient and curios Entrepreneurs launch their Small Business Company very early without fulfilling the proper needs of Staffing . These leads to financial loss if you do not have the workforce to drive the Startup to Successful path with hardworking ,dedicated and innovative team . Since teamwork always gets the results and startups are geared to clinch the top slots in the market . Mostly ,the entrepreneurs start without prior experience and they only want their ideas in realization . But the Startups success is beyond ideas . Besides good and workable ideas you should have experienced staff such finance ,technical , Sales & Marketing , Human Resource and Management .
The Following Five Hiring Mistakes should be avoided by Startup Company owners otherwise they will have to bear an irreparable loss to their Startup company which being new cannot sustain the Rocks .
1.Avoid Quick Hiring :Hiring is a very lengthy process which may take 6 to 8 weeks subject to Human Resource availability for certain field of work . Some Startups may take 2 to three Months in completing their hiring phase . Since Hiring has several Steps involved depending on the Position type .The Steps include advertising , Short listing , testing and Interviews , Trainings and Orientations etc . If your in hurry , you may avail the option of outsourcing since it only required a contract with Outsourcing agency and you can avail the services of Experienced and Professional available immediately . Hiring requires a Full time Experienced Human Resource Manager who can draft company HRM laws and Policies for recruitment.
2.Avoid Direct or Walk in Interviews : Unless you are in need of a urgent work , Direct interviews are not good for the companies to sift the candidates and Hire the Suitable ones . Even the Walk in Interviews are not good for some key positions in the company ,given the position type,TOR’s and Importance .Some company’s hire some worthless Human Resource which may become the recipe for failure of Startups since the productivity suffers if you hire the worthless and inexperienced Persons for your New Company .
3.Avoid Mass Hiring : Hiring as per the needs of startup will enable the entrepreneurs to save funds for Future needs if the companies grows and expands its Operation to massive customer base . If you hire more than required number of the staff then it will over burden you Startup budget and chances are clear that you will soon be looking for more funds from investors or Loans from banks . This will really affect the startup company’s growth as well as profits .
4.Avoid More packages than Market: Some startup boast to pay their employees much higher than market based salaries this will create some competition law violation and you may be liable to regulations for creating monopoly in salary payments . Always stick to your HR Policies and do not over spend . Such practice will strengthen the base of your startup and you will be able to reap Future Benefits .
5.Avoid to Boast of Offering Extra Perks : Do not keep your employees in limbo by promising high pay rise , Perks or Elevation if you are not intending to fulfill . Be very clear and mention employment terms and conditions in the Offer letter drafted by a Professional Legal and HR Specialist. If you differ the terms and conditions, your employees may hold you responsible for violation of terms and conditions of employment as promised . This will lead to legal action if your employees go in litigation.