HR for Startups: Building a People Strategy From Scratch

Why Startups Need an HR Strategy Early On

For many startups, human resources often feels like something to worry about later—after you’ve found product-market fit or secured your Series A. But here’s the catch: your company is your people. Strategy, execution, branding, culture—all of it depends on the people you bring in and how they’re nurtured. Without a clear people strategy early on, you risk chaotic onboarding, inconsistent values, and avoidable legal issues. Sounds dramatic? Maybe, but ask any founder who’s had to rebuild their leadership team from scratch or lost traction due to poor communication.

Think of HR like the scaffolding around your growing business. It may not be glamorous, but it holds everything in place while you scale. It creates consistency. It offers clarity. And most importantly, it reinforces your identity from day one. So why wait until you're 50 people deep and drowning in inefficiency to figure it out? The best time to build an HR strategy was yesterday. The next best time is now.

Key Components of a Startup HR Framework

Building an HR strategy from scratch doesn’t mean creating an enterprise-level HR department on day one. Instead, it’s about defining the core elements that will govern how you find, grow, and care for your team. Let’s break down the essentials every startup should cover within their first year or two—ideally sooner:

1. Define Your Company Culture

Culture is more than company perks or branded hoodies. It’s the set of shared values, behaviors, and norms that define how people work together. For startups, culture is often set by the founders, either intentionally or accidentally. Ask yourself: how do we communicate? What behaviors are rewarded? What do we absolutely not tolerate? Documenting these norms helps codify your expectations and provides a foundation for hiring and performance reviews.

One early-stage founder likened their culture-building process to creating a playlist for a road trip. "You want a vibe and energy that lifts you up and sets the tone," she said. The same principle applies in your startup—except the road trip is toward IPO or acquisition.

2. Talent Acquisition Strategy

Startup hiring tends to be reactionary—"we need someone yesterday"—which leads to rushed decisions and poor hiring matches. A smarter approach is to forecast your needs three to six months out and build pipelines early. Don’t just post a job opening and wait. Build connections with potential candidates, even if you're not hiring right away. Leverage your team’s network, LinkedIn, and niche job boards where your ideal candidates hang out.

Here are a few tips:

• Write clear, authentic job descriptions that reflect your unique culture.

• Standardize your interview process to ensure fairness and efficiency.

• Involve peers and co-founders in the process so hires align with your values.

3. Onboarding and Employee Experience

Imagine being hired by a fast-paced startup, only to be welcomed by chaos. No agenda. No introductions. No idea who to ask for help. That might work for a while, but over time, it erodes trust and morale. A thoughtful onboarding process, even if minimal, speaks volumes. It says, “We care about your success here.”

Even a one-pager with key onboarding steps can go a long way. Set clear expectations. Connect new hires with a buddy or founder. Schedule regular check-ins in the first 30, 60, and 90 days. This is your chance to reaffirm the culture and processes you've designed.

4. HR Policies and Legal Compliance

Policies may not be sexy, but skipping them is like driving without insurance. You hope you’ll never need them, but when things go wrong, they’re a lifesaver. Depending on your location, you may be legally required to provide certain protections, documentation, or benefits. Spend time getting this right, even if it means talking to an HR consultant or employment lawyer.

Common foundational policies include:

• Code of Conduct

• Leave & PTO policy

• Remote work and communication guidelines

• Anti-harassment and non-discrimination policies

Scaling Your People Strategy as You Grow

As your startup transitions from five to fifty people, your HR needs will shift dramatically. You can no longer rely on casual Slack messages or hallway conversations to communicate big changes. Leaders now have managers under them, and career development can't be left to chance. Systems, tools, and people must evolve.

Introduce Structure Without Bureaucracy

You don’t need to become corporate, but you do need clarity. Start introducing lightweight performance review systems. Create internal processes for promotions and raises. Set up pulse surveys or regular feedback loops to stay attuned to employee sentiment. A clear structure doesn't mean micromanagement—it means freedom within a framework.

Invest in Leadership Development

First-time managers often find themselves in the deep end—leading teams with little to no training. Don’t let your best individual contributors burn out because they weren’t set up to lead effectively. Offering mentorship, workshops, or even curated reading materials can make a difference. One tech company held monthly "manager circles" where leaders could share challenges openly. It was informal, low-cost, but incredibly impactful.

Choose the Right HR Tools

From applicant tracking systems (ATS) to employee information systems (HRIS), software can help automate the repetitive stuff—giving you space to focus on the things that matter, like team dynamics or diversity strategy. Don't splurge all at once. Pick tools that are modular, scalable, and easy to integrate; some great startups swear by options like BambooHR, Gusto, or Notion for people ops.

Create Space for Feedback and Openness

Nothing scales like trust. And trust grows with transparency. Can your employees safely share concerns or ideas? Do they feel their voice matters? Anonymous surveys, one-on-ones, and open Q&As with leadership are simple yet powerful. The earlier you build feedback into the DNA of your culture, the more adaptable your team becomes.

FAQ: HR for Startups

Why does a startup need an HR strategy so early?

Without an HR strategy, startups risk inconsistent hiring, unclear expectations, and potential legal setbacks. Early planning fosters a positive culture and smooth operations as the company grows.

How do we build culture with a remote or hybrid team?

Focus on intentional communication, regular check-ins, virtual team-building activities, and clearly documented values. Culture exists in every team—remote or not—so define it early and nurture it often.

When should we hire our first HR person?

A good rule of thumb is once you hit 15–20 employees. Before that, founders can manage HR with support from consultants. But as your team grows, a dedicated HR leader ensures strategic alignment and employee well-being.

In the end, building HR from scratch doesn’t mean doing it all at once. It means laying down the values, practices, and systems that will carry your startup forward. Start small but start strong. The people you hire today will shape the team and company of tomorrow. So, how do you want that story to unfold?