Liliana Chitnis: Why HR consulting is important for startups

HR department of an organisation holds the power to make or break that organisation. Simply put, it is the backbone of every business. Startups have limited resources to build a talent pool which can deliver in the challenging circumstances of early days of a business.

HR consulting can help startups with all the aspects related to the Human Resources department. This includes expert guidance and support with identifying HR needs, recruiting, onboarding, HR policies, processes, legal compliance etc. By choosing HR consulting, startups can get experienced help with human resource management which in turn helps boost efficiency and productivity.

Let’s understand in detail the importance and benefits of HR consulting for startups:

1. HR consulting has evolved tremendously. It now includes providing support in four key aspects on the planning front which are as described below:

  • Programs – to help establish an umbrella HR program which may include charting a new or updating your existing HR plan to better align with your business goals. This helps startups not only with recruiting but also with retention and future hiring.


  • Processes –to build a protocol and handle documentation which includes guidelines for the entire process – from interviewing to onboarding.


  • Policies– to establish HR related policies encompassing everything from orientation to code of conduct to non-disclosure agreement etc.


  • Practices–to create customised job descriptions and shortlisting the best platforms on which to share the vacancies. It also includes crafting important documents such as performance appraisal forms and an Employee Handbook.


2. As an entrepreneur, your time is valuable. If you focus on the HR requirements, get ready to dedicate a major chunk of your precious time. In such a scenario, other areas of your business which are fundamental to your company’s growth may not get the necessary amount of attention. HR consultancy gives you the freedom to focus on other critical decision by freeing up your valuable time. With increased business operating time, you can focus on optimizing resources for maximum growth.

3. An HR consultant can save your startup a lot of money as compared to hiring internally. Also, an internal HR team may often not work up to its full capacity due to the company’s small size. However, the cost of maintaining this team can be surprisingly high. Whereas, if you hire an HR consultancy, you only need to pay for what you need. Hence, it is a very cost-effective option for small companies and especially startups.

4. HR functions are complex. As a startup business owner you already have a lot on your plate. Besides, you may have developed an unintentionally narrow problem-solving approach for HR issues due to your strong awareness of the company’s protocols. HR consulting provides a neutral view and experienced guidance. Right from employee engagement and retention, to workplace conflict resolution and avoidance, HR consulting offers a free from bias and a fresh insight. They can also help in evaluating employee performance and provide effective solutions that are custom-tailored to your organisation’s needs. This helps smooth out the daily functions and boost productivity at a higher level.

5. Top talent with a combination of expertise and experience is generally the most difficult to attract and hire. If you choose HR consulting, you can get access to a much wider pool of applicants for all the positions your company needs. Be it base-level or mid-level staff or even leaders. With HR consulting, you can be sure that your startup is staffed and managed by the experts.

As it is important to attract top talent, it is equally important to avoid bad hires. A bad hire can have a negative impact on the productivity of the entire team which may prove detrimental to a startup’s growth in its initial days. This if neglected can snowball into other major problems. The expertise of HR consulting can help you avoid such bad hires and associated issues.