When is The Right Time to Hire an External HR Consultant for Your Startup?

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If you’ve founded a startup company, you understand the need to prioritize spending in the infancy stages of your venture. You need money to purchase equipment and hire the appropriate team members. Likely, hiring an external HR consultant is not high on your list of priorities. But maybe it should be.

The roles and responsibilities of an external HR consultant

Since no two startup companies are the same, the role an external HR consultant plays in a startup company differs greatly case by case. Their primary duties include developing the following: HR policies and procedures; job descriptions; recruitment and retention strategies; a compensation plan; and orientation and training programs. It’s hard to say exactly when you will need to hire an HR consultant, but here are some signs:

You have very few candidates

If you want your startup to be successful, you will need to hire the right team members. Unfortunately, 90% of startups eventually fail, which is not desirable for someone looking for job security. And that is one of the reasons many startups encounter challenges when trying to hire new employees.

Another reason many people may be hesitant to work for a startup is that team members are often required to go beyond their job description since there are not enough team members to complete certain tasks.

If you are finding that you have very few candidates applying for your job postings, it may be time for you to hire an HR consultant. An HR consultant will help you to advertise your company in a way that will attract qualified applicants.

There are too many candidates

You may think that having an abundance of candidates is a good thing until you realize that someone needs to go through all the applications and then interview the qualified candidates. It can take days to sort through applications just to find one candidate worth interviewing.

Not only will an HR consultant help with the job posting, but they will also help with screening candidates, interviewing background checking, and pre-employment testing.

You have a weak onboarding process

Now that you’ve found a candidate that is the right fit, your next step will be to onboard that new employee. Without a proper onboarding process even, the best employees will struggle in a new role. Luckily, an HR consultant will help with the onboarding process as well.

An HR consultant will ensure a new employee feels welcome as soon as they’ve accepted the offer and inform them of their role, duties, policies, procedures, and how they will fit into the existing workforce. A consultant will also inform current team members that someone new is joining the team. In addition to onboarding a new employee, an HR consultant will also create a scalable onboarding process that can be used for all new hires.

You can’t assess candidate skills

When looking to hire someone new, you must ensure their skills adequately fit the job. This is especially important in a startup where everyone must play multiple roles. If you have doubts about your ability to effectively assess the candidates’ skills, consult a professional for help. An external HR consultant has the necessary tools to make the right hiring decisions.

You don’t know how much to pay

When you are starting a new company, one of the most important budgetary decisions is about compensation as typically salaries make up about 50-70% of a company’s expenses. If you pay too little, you won’t attract the talent or entice people to stay longer. And if you pay too much, you are utilizing funds that could be invested in other areas of your growing business. Hire an HR consultant to let you know what the market rate is for the jobs in your company.

Do you need an HR consultant in Vancouver?

If you are searching for an external HR consultant in Vancouver, contact us at Pivot HR Services. At Pivot HR Services, you will find a team of experienced HR consultants who provide personalized attention, timely delivery, affordability and superior quality. So, call us today to discuss how we can help you grow your startup.

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