General HR
Introduction
Vanishingly few aspects of business do not involve humans. Even the most tech-heavy Silicon Valley startup will primarily be judged by the humans at the helm, the humans they attract, train, and retain, the humans who provide them funding, and the humans who buy their products or services. “Human Resources” as a function is at once everything across the business… and an odd hodge-podge of coaching, legal, culture, compensation, talent development, communication, organization, philosophy, policy, values, annual reviews, and everything from performance improvement to dental plans. While some aspects are black-and-white clear, most of HR deals with the human, i.e. intangible, often irrational, and “soft”. And because we’re dealing with our humans, it may be the most important function a business has.
What
As described above, HR covers a very wide remit indeed, touching all aspects of the business. Externalization of HR compliance requirements is increasingly possible. Hopefully it’s obvious that outsourcing the “soft stuff” is not a good idea.
When
HR begins before the company is formed. Company culture will be a reflection of the founding team, but all too often it is left there, without intentionality. Managing HR well enables every other aspect of the business. Labor law may not be violated, payroll must run on time, and few biotechs don’t provide benefits.
Why
For the new entrepreneur, HR presents unique compliance challenges, which often dominate whatever attention the function receives. This is a common and crucial mistake. The “soft stuff” – culture, values, philosophy, communication – is where HR makes its impact. Getting this right from the outset is critical, and orders of magnitude easier than trying to fix it later. Covey’s “Important vs. Urgent” quad chart is ideal to describe HR. The “soft stuff” is Important. Compliance is Urgent. Make sure you’re focusing on what’s important!
Learning Goals
How to manage HR compliance (internally or externally). How to build a powerful company culture.