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How Important is HR and Recruitment for Startups?


Businesses these days have become very competitive and aggressive, and are always looking to reduce costs. And in doing so, they end up neglecting certain important factors. This is especially true with startups, which usually save costs by pumping less money in human resources. In some cases, the HR department is virtually non-existent. Recruitment for startups becomes a huge challenge as well.


Importance of HR/Recruitment be it an industrial behemoth, a mid-sized company or a startup, at the end of the day, is run by a ‘human’ machinery. But HR and Recruitment for Startups is a very difficult task. In an organization, the HR department is responsible for implementing strategies and policies relating to the management of individuals. It helps in staffing, mentoring, learning and development, payroll, and keeping a track of the policies and various procedures in the firm. Many startups end up giving these responsibilities to an office administrator, who may or may not be equipped to address issues that require a human factor, such as executive recruitment. As far as recruitment goes, a startup can ease the burden on itself by using recruitment agencies that offer low-cost recruitment or other executive placement agencies.

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A striking example of this was a technology startup in India. Though it began with just four employees, the business grew in just six months. Hiring more resources proved to be a challenge. The CEO, wanting to avoid hiring a bad apple, decided to outsource staffing to an executive search firm in Mumbai. In just one month, they had a full-fledged team in place thanks to the hiring agency who offered them expertise for technology hiring solutions.

What’s interesting to note from the above example is that having an HR and Recruitment for Startups is as important as employing the services of a law firm or an accounting firm. Not only does this offer you low-cost recruitment solutions, but it also enables you to save a ‘seat’ in your office, as the hiring is taken care of by the placement agency. Speaking of office space, some agencies also offer plug-n-play offices that enable you to save money, especially when you are bootstrapping a startup.


Now, as far as HR is concerned for recruitment for startups, it’s imperative to have a system in place. In case there’s no HR team in an organization, the least a company could do is get HRMS Software. An HR management software would not only solve all your HR worries but also help you streamline your process. Whether it’s keeping track of attendance, defining salary slabs, managing leave policies, processing payroll or any other HR-related worry, HRMS software would definitely take care of this.

A cost-effective and user-friendly cloud-based HRMS software that would perfectly suit your business would be sumHR. sumHR offers several features to make your HR processes hassle-free. Apart from helping out in case of a missing HR team, this also helps to get rid of HR woes when you have a team in place. With our biometric time and attendance system and one-click payroll process, your HR team will surely thank you for implementing sumHR. To get a detailed list of the features provided by sumHR, visit our features page. Our cloud-based software also provides anytime-anywhere access so you and your employees can access your details from anywhere, anytime, and on any device!

A happy and comfortable workforce allows a company to scale heights as it increases productivity. Thus, a startup needs to focus on human resources and recruitment.

For a free trial of sumHR, simply visit or give us a call at +91 922 221 3195 and we’ll take care of the rest!

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sumHR is an all-one HRMS Platform to automate all HR Processes. With sumHR, create a tasteful employee experience, track attendance & leaves, setup & manage payroll, definie & monitor goals, generate & schedule reports, and so much more. We’re on a mission to improve the impact of HR teams in SMEs across India.

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Picture of <small style="font-weight:400;font-size:16px;">Written by</small><br>Team sumHR
Written by
Team sumHR

SumHR is a flexible and configurable end-to-end HR Software/HRMS which help HR teams automate the HR Processes, and improve the employee's HR experience.

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