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What a startup is usually missing?
Startups often dive headfirst into product development, market fit, and securing funding—critical steps for survival and growth. However, one critical aspect that frequently is an afterthought is People Operations (People Ops). It’s not immediately obvious why the early implementation of People Ops can be a game-changer for startups, but the impact is profound. The absence of a solid People Ops strategy can lead to challenges that hinder growth, disrupt culture, and even deter potential investors.
Let’s dive into why People Ops often gets overlooked and uncover the hidden ways this oversight can shape a startup’s trajectory, making the difference between fleeting success and sustainable growth.
The 6 Reasons why People Operations are an afterthought and their consequences
1. Focus on immediate survival
Startups typically operate in survival mode during their initial phases, with founders and early team members deeply focused on developing the product, acquiring customers, and achieving product-market fit. The immediate pressures of securing revenue and funding often overshadow the need to establish robust People Ops processes. In this environment, hiring tends to be reactive rather than proactive and can lead to high employee turnover, as the lack of strategic focus and support makes it easy for employees to become disengaged and burnt out. High turnover disrupts operations, results in loss of institutional knowledge, and incurs significant recruitment and training costs.
2. Resource constraints
Many startups operate with limited resources, both in terms of finances and personnel. Allocating budget and manpower to People Ops might seem like a luxury rather than a necessity. Founders might assume that handling people ops-related tasks can be deferred or managed ad-hoc until the company is more stable. This mindset results in the absence of dedicated People Ops professionals, which can severely impact company culture. A poor or undefined culture can deter potential hires, drive away existing employees, and negatively impact morale and productivity.
3. Lack of expertise
Founders are typically experts in their respective fields, such as technology, marketing, or finance. However, they may lack expertise in people operations and organizational development, leading to underestimating the complexity and importance of People Ops. This knowledge gap can result in compliance issues, as employment laws and regulations are complex and vary by region. Without dedicated professionals ensuring compliance, startups risk legal challenges, fines, and reputational damage, diverting resources and attention from core business activities.
4. Perceived non-urgency
People Ops tasks, such as crafting policies, conducting reviews, and organizing team-building events, might seem less urgent compared to product launches or customer acquisition. This perception leads to crucial activities being delayed, causing a shift from a strategic to a more reactive approach to managing talent. As a result, productivity can suffer due to a lack of clear performance expectations, inadequate feedback mechanisms, and insufficient opportunities for professional growth, ultimately stifling innovation and efficiency.
5. Misaligned priorities
In the hustle and bustle of building a startup, priorities often lean heavily toward tangible outputs like product features, sales numbers, and funding milestones. Intangible aspects like company culture, employee engagement, and talent development might seem secondary. This misalignment sidelines People Ops, leading to impaired scalability. Without a solid foundation in People Ops, inconsistent hiring practices, unclear career paths, and a lack of leadership development can hinder the startup’s ability to scale effectively and sustainably.
6. Scaling challenges
As startups begin to scale, the complexity of managing a growing workforce increases. However, without an established People Ops foundation, managing this growth can become chaotic. Inconsistent practices and lack of infrastructure lead to suboptimal team performance. Teams might not have the right mix of skills and personalities, resulting in miscommunication, conflict, and inefficiencies. A well-functioning People Ops team ensures hiring practices consider not just technical skills but also cultural fit and team dynamics, essential for effective collaboration and overall performance.
Strategies to prioritize people operations
1. Engage people ops professionals early
Investing in people ops professionals early can pay significant dividends in the long run. They can establish foundational practices, ensure compliance, and create a positive work environment. They can also help develop strategic initiatives that align people management with business goals.
2. Create a people-centric culture
Founders and leaders should prioritize creating a people-centric culture. This involves actively listening to employees, fostering open communication, and recognizing and rewarding contributions. A strong culture can enhance employee satisfaction, reduce turnover, and attract top talent.
3. Implement structured processes
Developing structured processes, even at an early stage, can provide clarity and consistency. This includes standardized talent acquisition procedures, comprehensive onboarding programs, regular performance reviews, and clear career development paths. Structured processes can help manage growth and maintain organizational coherence.
4. Focus on employee development
Investing in employee development is crucial for retaining talent and driving innovation. Startups should offer training programs, mentorship opportunities, and pathways for career advancement. Supporting continuous learning not only benefits employees but also contributes to the company’s growth and adaptability.
5. Leverage technology
Utilizing technology can streamline People Ops processes and enhance efficiency. HR software can automate administrative tasks, facilitate performance management, and provide data-driven insights into workforce trends. This allows people ops teams to focus on strategic initiatives rather than administrative burdens.
6. Foster leadership development
Leadership plays a crucial role in shaping company culture and driving performance. Startups should invest in leadership development programs to ensure that managers have the skills to lead effectively. Strong leadership can inspire employees, foster innovation, and create a resilient organization capable of navigating challenges.
7. Promote work-life Balance
Startups often demand long hours and high levels of commitment from employees. However, promoting a healthy work-life balance is essential for preventing burnout and maintaining productivity. Offering flexible work arrangements, encouraging time off, and supporting employees’ well-being can lead to a more motivated and loyal workforce.
8. Cultivate diversity and inclusion
Diversity and inclusion are not just ethical imperatives; they are also business imperatives. Diverse teams bring different perspectives and ideas, leading to more innovative solutions. Startups should prioritize building a diverse workforce and creating an inclusive environment where all employees feel valued and respected.
Conclusion
People Operations should not be an afterthought for startups. Prioritizing People Ops can significantly impact a startup’s success by reducing employee turnover, fostering a positive company culture, ensuring compliance, enhancing productivity, and enabling scalability. By recognizing the importance of People Ops and implementing strategic initiatives early on, startups can build a strong foundation for sustainable growth and long-term success. People are a company’s greatest asset and, consequently, the backbone of its success. Investing in them is not just a nice-to-have; it is a critical component of a startup’s journey toward achieving its vision and goals.
If you enjoyed this post, please check out the differences between small businesses and startups here.
Authored by Lamya Alaoui for Fujn
