Human Resource Management in Startups: Challenges and Solutions

Maliheh Javani¹ Reza Salehzadeh² Hassan Esmailian³

1) Ph.D., Department of Management, University of Isfahan
2) Assistant Professor, Department of Management, University of Isfahan
3) Ph.D., Department of Management, University of Isfahan

IOI Code : XKZA-KGDEF
Publication : 2nd International Conference on Business Development(icbdconf.ir/2nd)
Abstract :
    Today, the competitive environment is more dynamic than ever. The environmental uncertainty means that only companies that can adapt to these changes can survive in the long run. This situation is even more acute for startups because the lack of a predetermined structure makes these startups weak, aimless and out of the competitive cycle. Lack of proper HR processes can be one of the main reasons for the above problems. Therefore, the present study attempted to examine the challenges of human resource management in startups and provide related solutions using a library approach. According to the obtained results, the lack of financial resources presents several challenges, including the inability to hire HR specialists and consultants, difficulty in attracting top talent, and reduced job security for employees. Ineffective recruitment methods, informal performance evaluations, disregard for legal procedures in HR, insufficient training and development practices, and a lack of management acceptance are challenges faced by the field of human resources in startups. Despite low salaries and limited job security, startups have been found to provide high job satisfaction and strong work engagement and participation, possibly due to the potential of the HR field within them.

Keywords : startup human resource management recruitment informal performance evaluations