With a great idea comes a great product. With a great product comes a great business. Start-ups, specifically in technology, have the capability to ameliorate the lives of others in ways that also grows commerce. There is a point during the growth of a company though, when one no longer has time to hand chose every colleague.
Many start-ups don’t have a Human Resources Department, and never before saw the need for one . When a company is under 10 people, everyone works as a team, and problems are resolved as a group.
As a product takes off, however, start-ups will have to hire outsiders, and will have to manage those people’s employment. Creating contracts, working out billing systems for different types of employees, and providing a framework to hire and fire people can be expensive both in time and money. We recommend using an agency to cut costs and increase efficiency.
Here are few of the benefits when using a trained agency:
1. Time: It can be very time consuming interviewing and hiring people. It is the job of an agency to do this, and do it well. The the time spent finding qualified candidates, could be used in product development or finding new clients. Remember agencies are paid to find perfect person, and so they will.
2. Costs: Creating the HR network needed for a growing business can be expensive. Outsourcing to an agency will allow you to focus on what is most important in house. The start-up cost of working with a third party who is trained is much less then having to learn best practices in house.
3. Candidates: Agencies are paid to find the best candidates for the position. They have people dedicated to screening and testing in a way that can be tedious in house. While the final decision to hire or fire is left up to the company, the pool of applicants is much better. Not using an agency can be like throwing spaghetti against the wall, and seeing what sticks.
4. Contracts: What is the difference between exempt and non-exempt? What if the continuation of this persons employment is contingent on the growth of the company, what is the best way to hire them? Is this position better for a consultant? These are all important questions to ask, and an agency can work with companies to make sure that they employ people in the best manner. They also, on another note, can help you in the case you need to let someone go. This can be very difficult, but agencies work within a framework that prevents a company from blow-back.
