Sound HR practice critical to achieving set goals

Nasscom predicts that the total number of IT startups will touch the 11,000 mark by 2020. The startup ecosystem will contribute to over 3 lakh jobs. Unlike largescale organisations today that house anywhere between 10,000 to 2.5 lakh employees, most startups will employee around 75 –100 employees

In US, host to the largest startup ecosystem, over 90% of new organisations fail. The trend won’t be different in India. Success will depend on how organisations are able to execute sound business propositions which in turn will depend on the quality of people who implement the idea.

Research suggests that the cost of each ‘bad-hire’ is around Rs 20 lakh and this is just the monetary aspect. Employing expertise is critical, employing potential is equally important. The initial team members of startups are mostly handpicked by the founder, and are generally aligned to the common vision. The next level of hiring is where organisations struggle as they do not start with well-documented HR policy; key selection and rejection decisions are based on a gut-feeling.

Organisations should define each role well. Based on the competency required, a proven recruitment method should be adopted. Large organisations have used testing and assessment as a rejection tool. For startups, using assessments is equally important. Organisations hiring employees to key functions should assess their knowledge and skills to perform in the role. Their ability to apply this knowledge and skill also needs to be assessed.

Fitting of a candidates’ personality to the job  is very important. Candidates expect to learn, grow and succeed along with the organisation. They would want to achieve and will be willing to risk their career for it. It is important to ensure they are learners who can adapt, think critically or creatively to perform in specific roles. They should have the ability to collaborate with different teams, internal and external. Standardised personality and behavioral assessments are what startups should consider while hiring.