HR As A Service: Benefits of Interim HR for Start-Ups
“We are on-hand to answer questions on labor laws, compensation, job roles, provide coaching on addressing poor performance and practical solutions related to people.”
- Joanna Yeoh, Director of ConnectOne
Fractional executives, or interim arrangements for management functions, are becoming increasingly popular to meet the talent needs of fast-growing start-ups. Human Resources (HR) is one of the key areas where founders have brought in experienced practitioners to help them scale.
We speak to Joanna Yeoh, a Director at ConnectOne who has had 25 years of experience in HR thus far and has been performing the role of Interim HR for several early-stage start-ups since 2019.
What is Interim HR?
It is essentially parachuting an experienced HR practitioner into a startup to troubleshoot and solve immediate HR issues; while building up internal HR capabilities and setting up an HR architecture for growth. Think of it as HR as a service (HAAS).
Why would a startup need an Interim HR? And when? And for how long a period?
For early-stage start-ups that we work with, the typical scenario we encounter is the HR portfolio being parked under a co-founder who is supported by a recruiter or operations generalist. They have done a good job of growing the company from 0 - 10, but as it rapidly scales to 50+ employees, start-ups start to face more “people” challenges and they are compelled to look externally for deeper HR expertise.
One alternative is to hire a full-time HR Manager but founders often encounter the following scenarios:
There is uncertainty around business plans and there may not be enough work (or budget) to accommodate a full-time HR Leader
There is typically a 2-3 month lead time to hire and onboard an employee. In the meantime, your business needs to continue operating and people issues need to be addressed
The needs of a Startup are unique and not all HR leaders are equipped to build HR strategy and architecture from scratch. Professionals from MNCs and corporates may only have had experience “maintaining” these systems with large teams and resources. And have never built teams and processes from zero.
Interim HR retainers are available for 1, 3, or 6 months; depending on the scope of work.
What does an Interim HR do?
Firstly, we talk to founders about their business goals and immediate priorities; and what people/HR gaps are preventing them from achieving those goals.
Next, we then help them identify potential solutions and prioritize action plans.
Then, we step in and make it happen. The work can be done jointly with the in-house HR team or as an individual contributor.
Over time, we end up playing the role of advisor to founders. We are available to answer questions on labor laws, compensation, job roles, provide coaching on addressing poor performance, and a myriad of questions related to people.
What are the benefits of having an Interim HR over an in-house HR?
It’s not a case of either /or. You can have both. Interim HR is used to supplement in-house HR in cases where more in-depth technical expertise or additional coaching is needed.
Tell us about your experience being an interim HR for startups? What specific area did you make a difference in? And what were the challenges?
I have played the role of interim HR Lead for 4 early-stage startups who have all faced different challenges. Some of the HR interventions we’ve done include:
People Strategy: We run a diagnostic workshop to understand the business challenges for the next 6-12 months (including funding, geographical expansion, team leadership issues) and develop a People Strategy and Action Plans for the next 6 - 18 months
Role Clarification: When Startups scale and hire quickly, the role that a new hire is expected to perform often changes and is different from the first job description they were initially given. It is important for leaders to help team members clarify who is responsible, accountable, consulted, and informed about decisions for effective communication and to drive outcomes.
Training for Team Leads or Managers: Using Emergenetics, a psychometric tool designed to understand the thinking and behavioral preferences of individuals, we help leaders to first understand their own styles; and then figure out how to motivate and manage their team members for improved communication, collaboration and performance outcomes.
Building HR Architecture:
Building recruitment capabilities, processes, and templates
Developing HR policies and employee handbook
Benchmarking salaries with the external market to build a Compensation Framework and User Guide for internal HR and people managers
Setting up outsourced payroll for new geographies, and advising startups on labor law regulations and market practices in different countries.
We also advise and offer to coach internal HR and founders on people and HR issues.
P/S: If Joanna has convinced you that Interim HR is what you need, contact us here to get the best experts for your Startup today!