A Lean Framework for HRM in Startups

Abstract

The modern era is all about solving daily life problems with the help of technology. The modern generations have a lot of innovative ideas to do so. Currently there are many incubation centers and accelerators to help make these innovative ideas and convert them into successful businesses. The startups residing in these facilities get a chance to get guidance from experts of all fields. Diverse areas are covered while mentoring startups and helping them refine the idea into a business. But unfortunately the only arena ignored remain the most critical one HRM. Human resources are the most valuable asset of any organizations. And for startups they are the main factor to take it to next level of success or become a cause of its failure. The irony with startups is that they end up hiring only fresh graduates who are looking for some industry experience to start their career. Once these fresh graduates gain some experience they switch to better opportunities in big organizations. The main factors of individuals leaving startups are the compensations offered and training and development opportunities. Due to lack of financial resources, startups cannot pay the employees with handsome amount of salaries. The purpose of the project was to highlight the importance of different HR policies and procedures the startups can adopt to retain its employees despite having limited financial resources. Our focus was the employee retention for startups due to factors like training and development, compensations offered (monetary and non-monetary) and work life balance policies. The project was designed and implement on for three startups currently residing in one of the government funded incubation center, National Incubation Center (NIC). After implementation of the policies and procedures suggested, the results were based on comparison basis. We compared the result by effect of policies in past three months and previous one year of the startups and then amongst the startups. The results are shown in form of charts in the report