13 Core HR Areas for Founders and People Teams of One
Navigating HR as a founder or a solo people team can feel overwhelming. You may not know what you don't know, but by focusing on key areas, you can create a solid HR foundation that supports your business and builds trust with your employees. Here are the essential areas to focus on and why they matter, with some additional insights to help you get started.
Key Considerations for Running HR
Planning: The Roadmap to Success
Effective planning is crucial for aligning HR initiatives with business and employee needs. This involves understanding yearly and quarterly goals and mapping out all tasks and activities that contribute to these larger goals. A detailed rollout plan ensures that your HR efforts are focused and cohesive, leading to smoother execution and better outcomes. Planning also allows for accountability, the ability to reverse engineer where areas could be improved in the future, and better management of day-to-day fires as they come up.
Communications: The Key to Adoption
Clear and consistent communication is vital for the success of any HR initiative. Communicating every step of the way gives leaders and employees an opportunity to voice concerns early on, saving you time and ensuring everyone feels included. Establish communication channels such as slack, emails, an intranet, or town hall meetings. Transparency builds trust and engagement, making employees feel that things are being done with and for them, not to them. Plus, communicating HR initiatives regularly has an added bonus of "speak now or forever hold your peace"!
Process: Creating Consistency and Efficiency
Repeatable and efficient processes are the backbone of effective HR management. Standard operating procedures for activities like hiring, onboarding, and performance reviews ensure consistency and reliability. Implementing the right technology tools can streamline these processes, reduce errors, and save time. Clear processes and the right tech stack make your HR function more efficient and capable of handling growth. Having processes everyone has agreed to and understands creates an environment of empowerment and accountability.
Policies: Setting the Rules of the Road
Clear policies provide guidelines for behavior and decision making within your company. Think of policies as the rules of a board game they ensure fairness and make sure everyone is on the same page. Tailor your policies to fit your company's unique culture and needs, ensuring compliance with relevant laws and regulations. Remember, a policy can sound scary, but they ensure fairness and consistency. Most people just want to know that they are working within established boundaries.
Documentation: Ensuring Continuity and Compliance
Proper documentation is essential for ensuring continuity and compliance in your HR function. Besides compliance regulations, imagine you win the lottery! The last thing you want to do is figure out where you put everything and train a team on what you've been doing. Make sure all HR content is easily accessible and well-organized. Good documentation practices ensure that critical HR knowledge and processes are preserved and can be followed by others if needed, but also so you can be more efficient and effective.
The 13 Core HR Areas
1. HR Strategy and Planning
Developing a strategic HR plan that aligns with your business goals is crucial. This includes setting long-term objectives, workforce planning, identifying necessary resources, and creating a roadmap for achieving HR goals. Regularly review and adjust the strategy to stay aligned with business changes and growth.
2. Recruiting & Staffing
Create a structured and repeatable recruiting process. This includes job descriptions, interview processes, and onboarding procedures. Highlight how your company wants to interview candidates and consider their experience. Consider implementing an Applicant Tracking System (ATS) to streamline the hiring process and track candidates. Efficient recruiting ensures you attract and retain the best talent.
3. Onboarding: Rolling Out the Red Carpet
A comprehensive onboarding process is crucial for making a great first impression. Rolling out the red carpet for new hires ensures they feel welcomed and integrated into your company culture. Automate the onboarding process and create an engaging orientation program. Remember, the first three months are critical for retention!
4. Performance Management
Implement a performance management system that includes regular reviews, goal setting, and ongoing feedback. There's no one-size-fits-all solution, so make sure it fits your business needs and culture. Use this system to track employee performance, identify areas for improvement, and recognize achievements. Consistent performance management helps align employee goals with company objectives and fosters continuous development.
5. Training & Development
Invest in training and development programs to enhance employee skills and support career growth. Employees should see a clear path to success and growth within your company. Most employees won't ask for opportunities—it needs to be presented to them clearly. Create career paths, provide ongoing training, and establish a formal promotion process.
6. Employee Engagement: Collecting Metrics and Driving Decisions
Develop an employee engagement program that includes regular surveys and feedback mechanisms. Engagement data helps you prioritize HR initiatives and understand company trends. Engaged employees are more productive, satisfied, and likely to stay with the company.
7. Rewards & Recognition
Implement a rewards and recognition program to acknowledge and appreciate employees' contributions. This can include monetary rewards, public recognition, or other incentives. Recognizing employees' efforts boosts morale, increases motivation, and improves retention. This is also a great way for employees to appreciate the work others do.
8. Culture: The DNA of Your Company
Foster a positive company culture that aligns with your business values and goals. Culture is the DNA of your company—who you want to be and how you communicate, invest time and money, and interact with each other. Promote diversity and inclusion, organize team-building activities, and integrate company values into everyday practices.
9. Employee Relations
Maintain good employee relations by addressing issues promptly and fairly. This includes handling grievances, conducting exit interviews, and providing clear communication channels for employees to voice concerns. Strong employee relations contribute to a harmonious and productive workplace.
10. Compensation & Benefits
Create a clear compensation philosophy and ensure your benefits offerings are competitive and well-communicated. Educate employees about their benefits to ensure they appreciate and utilize them. Regularly review and adjust compensation packages to stay aligned with industry standards. A strong compensation philosophy helps retain talent, maintain fairness, and build trust.
11. HR Technology
Leverage HR technology to streamline processes, enhance efficiency, and support decision-making. Evaluate how new tools integrate with current systems and consider the employee experience. Effective use of HR technology can significantly improve overall HR operations.
12. Employment Compliance
Ensure that your company adheres to all relevant federal and state employment laws and regulations. Look for ways to automate compliance tasks, such as employer notifications, to save time and reduce errors. Regular audits and updates to your compliance protocols help mitigate legal risks and enhance operational efficiency.
13. HR Organization
Structure your HR team to align with your company’s needs and growth. Determine when to staff up HR—such as bringing in a Fractional CHRO vs. hiring full-time, or leveraging outside recruiters vs. in-house recruiting. Define roles and responsibilities, provide necessary training, and ensure the HR team has the resources needed to succeed.
Balancing Strategy and Compliance
Balancing strategic initiatives with compliance is key to a successful HR function. Strategic HR initiatives focus on long-term goals that align with your business’s objectives, such as leadership development and employee engagement. Compliance ensures that your HR practices adhere to legal standards. By identifying what is strategic and what is compliance-related, you can prioritize your efforts and ensure that your HR initiatives support both growth and legal adherence.
Final Thoughts
As a founder or solo HR professional, you don't have to do everything at once. Prioritize planning and communicate transparently with your team about how and when HR initiatives are being rolled out. By focusing on planning, communication, process, policies, documentation, and the 13 core HR areas like recruiting, onboarding, performance management, training, employee engagement, rewards, culture, employee relations, compensation, HR technology, employment compliance, and HR organization, you can establish a robust HR foundation that supports your business’s growth and fosters a positive workplace culture.
