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 too becomes a huge challenge.


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 management 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 executive recruitment firm 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, it enables you to save a ‘seat’ in your office, as the hiring is taken care off 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, 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 an 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, an 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 a number of features to make your HR processes are 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, it is important for a startup 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!

They say ‘Never judge a book by it’s cover’ and the same goes for Ankkita, tiny human with a huge imagination. Chocolate runs in her veins, can’t cook to save her life but can eat like a champion. Writing is her escape from the world or it’s like living in Narnia as she calls it. Music, books and chocolate are three words that can sum up her life.

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