Why Even Startups Need Strategic HR
For start-ups, sometimes it feels like HR is a luxury reserved for mid to large-sized businesses. You think, “I’ll get to HR when I have 20–50 employees; everything is Fine for now.” However, fine for now is rarely fine for long and before you know it, you’re already dealing with disengagement, policy missteps, leadership gaps, slow recruiting, muddled onboarding, team silos, misaligned values, excess recruitment costs... the list goes on.
Small businesses and start-ups need to be looking to HR as a way to protect their future, not just to fix “people problems”. The world outside is constantly changing and evolving. Here are some important trends to consider:
Rising stress and reduced well-being. In North America, only 52% of employees say they are “thriving,” a decline from previous years.
Increased competition for talent. With remote work and hybrid models normalizing, small companies must compete not just locally but globally for talent, requiring more robust people practices. Plus, recruitment happens FAST – and not being prepared may see you lose out on the best talent.
Digital & HR tech expectations rising. SHRM’s research on the future of work points to growing demand for HR tech adoption, AI in recruiting, and digital systems. Small businesses need to consider the tech they are using, their usage policies, and what their clients and employees expect in terms of operational functionality.
Post-pandemic volatility. Canadian companies remain under pressure to adapt HR models in response to shifting work norms, remote operations, labour shortages, and regulatory shifts... all while remaining compliant and competitive.
These factors accelerate the need for people practices that are not just administrative, but strategic, predictive, and resilient. However, in an effort to achieve this (without HR), startups and small businesses often hit three stumbling blocks:
No formal HR leadership. Without even part-time HR to spend time building, small companies often lack robust hiring processes, training programs, performance frameworks, or retention strategies.
Reactive HR mode. Many leaders only bring in support when there’s a problem: employee conflict, compliance fines, resignations. HR should be proactive, not reactive, helping you get ahead of issues before they arise.
Uncoordinated tech stacks. Startups often patch together piecemeal HR tools (payroll, timekeeping, ATS), creating friction, data siloes, and inefficiencies. This can cost time and money, and lead to more significant growing pains when your startup scales.
Fortunately, fractional HR can help play a strategic role in your small business. Maybe you need just 10 hours of help a month, or a short-term HR sprint to build key infrastructure. Maybe you need 40 hours of work to get the ball rolling, then just maintenance hours to keep things going. Or, maybe you’re recruiting, need a policy update, or have a one-off concern you need addressed. Don't leave starting your HR for when you’re no longer a startup.
We can help by future-proofing your HR and/or helping you with the HR issues you are facing now. Plus, the work we do now will help serve you as you grow.
If you want to talk through how this fits your stage and your budget, let’s do it. Get in touch today.
