Critical Logical

HR Focus in Start-ups to Succeed

Start-up companies can come in all forms and sizes. They seem to have high failure rates, but the minority who succeed can become large and influential.

It has been seen that most start-up founders more often have a casual or off-beat culture in their thinking, dress, office space, HR practices and Marketing, as compared to traditional corporations. Some of these casual approaches, such as the use of “flat” organizational structure, in which employees can directly communicate with the Founders or CEOs informally, are practiced to promote efficiency and to enthuse employees in the workplace.

Business Strategies for Finance, Marketing, Production, Product Development and Innovation are made without a robust HR and People strategy. The importance of this needs to be highlighted as this is one pillars of the foundation on which the businesses is built, and if this pillar is weak or not there the dangers will always loom. Having a HR and People plan is like a having Finance plan which is absolutely essential to a success of a start-up. If people are not the key focus area the start-up cannot succeed. The HRand People plan needs to be budgeted in the initial phase itself.

Hiring the right person is one of the biggest challenges for the start-up – it is not that getting people is a problem but getting the right-fit certainly is for most start-up organizations. Many a times compromises are likely to be made to get the organization moving quickly hoping that the incumbents will learn and adapt as we go along – something which a start-up needs to be careful about in my opinion.

All start-ups need people who are innovative, adaptable and flexible, analytical, emotionally intelligent, team players and have willingness to learn. They should be willing multi-taskers. Easily said than done – how do we find this out in an interview of an hour or two at the most? The founder’s or CEO’s experience or gut-feel may not be sufficient to make those judgements. There is a professional way of doing thisby putting the person through professional Competency Assessment or Personality (Psychological) Tests.

As the organization matures and grows retention of good people becomes the challenge.Attracting,developing and retaining an amazing team are the hallmarks of success for any start-ups success. If there are right people they will design and redesign success strategies and fight for the organization’s success.

What HR policies should be there? How shouldthe elements of legality, predictability, fairness, equity and control be built into them require in-depth thought and insight as does the business plan. What has succeeded in one organization may not in another as each organization have a unique character and personality. Having policies is not good enough it is their proper implementation which is the tougher part and leads to dissatisfaction in most organizations over a period of time.

Just like business strategies and plans change the HR policies need to be revised and re-engineered keeping in view the business needs.

Making sure that the there is adequate focus on people besides other areas is most important in my opinion.

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Making Performance Management Work effectively

Managing Performance and keeping the workforce motivated is becoming increasingly complex and difficult particularly for the young brigade who is far more mobile and impulsive.
No system is perfect and permanent in any organisation. We need to continuously improve and adapt our processes to the changing environment.
Most organizations do have some form of Performance Management System as in recent times even Performance Appraisal is called the same. Firstly, let me clarify that Performance Appraisal is only one of the elements of the Performance Management System.
A robust Performance Management System (PMS) has 4 distinct sub-processes:
1. Formal Target Setting Process cascading down from the Annual Business Plan. It encompasses a participatory approach and is an open, transparent,data-based and an alignedprocess wherein the organization seeks to set challenging but realistic targets for all its employees.
2. Monitoring and Control involves an institutionalised and an on-going process for giving feedback, coaching and counselling to keepthe performance on track. This is the most important part of PMS and the organization needs to build the competence of its employees – it requires specialized training. This has invariably been a weakness in most organizations we have worked for in the last 30 years
3. The Performance Appraisal against the targets set in step 1 and any revisions thereafter. This requires the elements of subjectivity to be reduced and objectivity brought in. For this the appraisal form needs to be well designed. Self-appraisal often helps to bring acceptance and reasoning in the whole process. Appraiser and Reviewer both need to be data-based and objective to keep personal biases out.
4. A clearly defined Reward and Recognition Policy linked with thePerformance Appraisal contributes to building a motivated work-force. This needs constant review and updating year on year.
It is desirable to have the whole process fully documented with timelines with responsibilities clearly demarcated.
Other process such as Career and Succession Planning need to be in place for Performance Management to be more effective. Some Organizations do keep the two processes independent. However, the retention of talent has thrown a big challenge to many organizations as they grapple with balancing these processes.
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Leverage Your Human Resources With Assessment Solutions

To retain the right employees and maximize their effectiveness in the business, you need to implement effective assessment resolutions. These are structured means of evaluating potential employees on a gamut of fundamental criteria. These ways can also be applied to subsisting employees too.

When used in the engaging and selection process, assessment solutions help you to pick the apt candidate for the role through the usage of a number of structured ways. Employing tested criteria ensures the people you hire are not only the suitable for the position in question but also decide whether they can match and thrive in your current company culture.

Hiring and Recruitment

When it arrives at employee selection and recruitment, many companies yet cling to the traditional methods of recruitment. These methods – interviews, resume critiques, background checks and so on – are still valid but are nowhere near enough to decide whether a candidate is fit not only to do the work you’re choosing them for but also whether they will fit into your organization and be engaged to its long-term success.

Contemporary assessment systems incorporate skills and abilities tests, behavioral and character evaluations, structured interviews assessments and simulations, cultural fit, job fit and career fit, practical job previews, administration evaluations and can hold custom-built assessments.

As for your existing employees, assessment systems comprising a range of tests, interviews, and simulations provide an ideal method to assess training and development needs. By correctly determining these needs, you’ll be in the perfect position to formulate a training program that improves your employees and thus your complete organization.

Examples are assessment centers and simulations. These enable you to evaluate performance levels and development changes for current employees as well as candidates. These contain a wide range of stimulating and practical activities providing presentation and role playing exercises, written analysis applications and workflow simulation exercises.

Performance Indicators

These allow you to foretell how well your employees will be involved in their work and if they are likely to stick with your organization.

Assessment solutions can also help with another problem that some firms face, that of employee retention. Employees leave organizations for many reasons, but job dissatisfaction is high on the list. Job dissatisfaction can result from many factors including not fitting in with organizational culture to feeling undervalued or in the wrong role.

Employee retention

Proper assessment can improve employee retention in many ways. For one thing, it can work in the hiring process by making sure that the candidate is someone right for the position s/he’s applying for and also right for your company culture. The modern assessment covers such factors as cultural fit, job fit and career fit, to make sure your new employee is with you for the long term.

Ongoing assessment can ensure employee satisfaction by making sure an employee’s talent is recognized and put to its best use.

Cengrow is one among global leaders in management consulting firms and has transformed businesses in all sectors and regions in India and across the planet. They have partnered with a range of clients to develop need based assessment solutions for employees at reasonable costs.

Visit www.cengrow.com for more.