HR Must-Dos for Startups: Without These Points, Your Startup Will Blow Up in Your Face

About this episode

In the daily grind of startup life, HR is often viewed as a necessary evil—a cost factor that only becomes relevant when the team grows larger. Anna Ott from HV Capital shows in the Leadership Bakery why this mindset is dangerous and which HR fundamentals must be in place from the very beginning.

The Biggest Beliefs That Block Startups

Many founders fall into typical mental traps that hinder their companies' growth. Overwhelm is a widespread problem—not just among teams, but especially among founders themselves. The challenge lies in recognizing when it's time to delegate responsibility and introduce structured processes.

What Does HR Encompass Today?

HR is no longer limited to recruiting and payroll processing. Modern people functions include:

• –Talent acquisition and strategic recruiting
• –Performance management and employee development
• –Company culture and employee experience
• –Compliance and legal safeguarding
• –Diversity & inclusion strategies
• –Change management during growth phases

Recognizing Internal Problems Early

A critical point for startup founders is the question: How do I recognize when internal problems exist? Warning signs are often overlooked or misinterpreted. Anna Ott emphasizes the importance of a structured approach to evaluating internal challenges.

Often, hiring happens thoughtlessly just because team size targets have been reached—without strategic consideration of whether these positions are actually necessary or whether problems could be solved differently.

In-House vs. External Expertise

A central question for growing startups: Does every skill set need to be represented in-house? The answer is nuanced. While core competencies should definitely be built internally, project-based freelancers or external service providers can make sense for specialized tasks.

The decision depends on various factors:

• –Strategic relevance of the function
• –Availability of budget and talent
• –Long-term company goals
• –Scaling velocity

The Control Issues of Many Bosses

Another common problem: Many founders have difficulty letting go of control. This control obsession regarding their employees' work can significantly slow growth. Finding the balance between necessary leadership and trust in the team is one of the most important leadership competencies.

Work-Life Balance: Reality vs. Expectation

The discussion around work-life balance is particularly complex in startups. While the concept is important, founders must set realistic expectations and authentically communicate what's possible in different growth phases.

HR Fundamentals: Where to Start

For startups looking to begin with HR structures, Anna Ott recommends a systematic approach:

1. –Establish basic processes: Clear structures for onboarding, performance reviews, and feedback
2. –Select the right people: Strategic recruiting instead of reactive hiring
3. –Consider diversity from the start: Not as an add-on, but as an integral part of the hiring strategy

Implementing Diversity in Hiring Correctly

Diversity isn't a nice-to-have, but a business advantage. The challenge lies in implementing diversity authentically and strategically without falling into token hiring. Successful diversity strategies begin with job postings and continue throughout the entire recruiting process.

Headhunters: Pros and Cons

When it comes to talent acquisition, the question of external recruiters often arises. Headhunters can be valuable partners, especially for hard-to-fill positions. At the same time, it's important to keep costs and cultural fit in mind.

International Teams and Salary Structures

With international employees, salary calculation becomes complex. Factors such as local markets, cost of living, and legal frameworks must be considered. A transparent and fair salary structure is essential for team trust.

Conclusion: HR as a Strategic Success Factor

HR isn't a cost factor, but a strategic success factor for startups. Those who build the right structures from the beginning create the foundation for sustainable growth. Investment in professional people processes pays off long-term through higher employee satisfaction, better performance, and more successful scaling.

Founders who postpone HR topics too long risk not only legal problems but also the loss of valuable talent and the development of a toxic company culture. Anna Ott's expertise shows: The right HR fundamentals aren't an option, but a necessity for any startup success.