Hiring + HR Essentials for Startups and Small Business
In this episode of World’s Greatest Boss, Jackie Koch breaks down the top HR and hiring essentials every startup and small business needs to succeed. From compliance must-haves to crafting the perfect hiring process, Jackie shares a step-by-step guide to set your team up for long-term success. Whether you’re just starting out or scaling up, these practical tips will save you time, money, and headaches while helping you build a thriving team and avoid costly mistakes.
Tune in for a roadmap to create a strong HR foundation for your growing business!
What You’ll Hear in This Episode:
[00:01:23] The shocking gaps in many startups’ HR setups—and why it matters.
[00:02:22] Step 1: Nail the HR compliance basics to protect your business.
[00:05:23] Step 2: Build a structured, repeatable hiring process.
[00:08:10] Step 3: Establish your pay and benefits strategy.
[00:09:43] Step 4: Create a simple yet effective employee handbook.
[00:11:19] Step 5: Implement a system for performance management.
[00:12:52] The peace of mind that comes with proactive HR practices.
Resources and Links:
Hiring & HR Essentials Playbook – A Notion-based guide for deep dives into HR and hiring strategies.
Connect with Jackie:
LinkedIn: Jackie Koch
Website: People Principles
Read Instead:
Building a successful small business or startup takes more than just a great idea—it takes a great team. But let’s face it, many small business owners find themselves Googling questions like, “How do I hire the right people?” or “What HR policies do I need to stay compliant?” If that sounds familiar, this guide is for you.
Getting your HR and hiring basics right early on isn’t just about following the rules—it’s about creating a solid foundation that helps your team thrive and keeps your business running smoothly. Below are five essential steps to setting up HR and hiring processes that will save you time, money, and headaches down the road.
1. Nail the HR Compliance Basics HR compliance might not be the most exciting part of running a business, but it’s absolutely essential.
Here’s what you need to cover:
Employee Classification: Ensure workers are classified correctly as employees or contractors, and as exempt or non-exempt from overtime, following the Fair Labor Standards Act (FLSA).
Offer Letters and Agreements: Provide clear, compliant offer letters that confirm at-will employment (except in Montana).
Recordkeeping: Complete I-9 forms within three days of hiring and maintain accurate payroll records.
Mandatory Policies: Include anti-harassment and discrimination policies, and follow OSHA workplace safety requirements.
Offboarding: Understand final pay requirements and document terminations to protect your business.
A solid compliance checklist, like the one offered on People Principles’ website, can help you cover these basics with confidence.
2. Create a Repeatable Hiring Process
Hiring the right people is one of the most critical tasks for any small business. A structured hiring process ensures consistency and helps you make better decisions. Here’s how to set it up:
Plan the Process: Decide how many interviews you’ll conduct, who will participate, and what each interviewer is assessing.
Prepare Questions: Tailor interview questions to your business’s needs, focusing on core values and role-specific skills.
Standardize Evaluation: Use the same criteria for every candidate to ensure fair comparisons.
Pro tip: Tools like ChatGPT can help you brainstorm interview questions that align with your company’s goals and values.
3. Set Your Pay and Benefits Strategy
Compensation and benefits play a big role in attracting and retaining top talent. Even if you’re a small business, you can offer competitive packages by being intentional about what you provide. Key considerations include:
Health Insurance: Many candidates prioritize this above all else.
Paid Time Off: Decide if you’ll offer unlimited PTO, separate sick and vacation time, or an accrual system.
Retirement Plans: Offering a 401(k) or similar plan can set you apart.
Make sure your pay practices align with minimum wage and overtime laws—and don’t forget to communicate your benefits clearly during the hiring process.
4. Develop an Employee Handbook and Key Policies
An employee handbook does more than check a compliance box—it sets the tone for your company culture. Focus on these elements:
Core Policies: Outline PTO, workplace expectations, and expense reimbursement.
Cultural Guidelines: Include your philosophy on remote work, meetings, and performance feedback.
Transparency: Be clear about how pay raises, promotions, and performance issues are handled.
Keep it simple but comprehensive. Your handbook should answer common employee questions and prevent unnecessary confusion.
5. Implement a Performance Management System
Managing performance isn’t just about handling underperformance—it’s about fostering growth and alignment. Start with these steps:
One-on-Ones: Schedule regular meetings with employees to discuss goals, challenges, and feedback.
Onboarding Reviews: Conduct 30-60-90 day reviews for new hires to ensure they’re settling in.
Ongoing Feedback: Use tools like quarterly “Start, Stop, Continue” reviews to keep conversations structured and productive.
Having a system in place helps employees feel supported and gives you the documentation you need to address issues proactively.
Why These Steps Matter
By following these five steps, you’ll not only build a stronger, more cohesive team, but you’ll also:
Reduce Legal Risks: Avoid fines, lawsuits, and compliance issues.
Save Time: Streamline processes so you can focus on growing your business.
Enhance Team Morale: Provide clarity and support, which boosts employee satisfaction and retention.
Building strong HR and hiring foundations takes effort, but it’s worth it. For a deeper dive into these topics, check out the People and Hiring Essentials Playbook on the People Principles website. It’s packed with practical tools and resources to help you get it right the first time.
As always, investing in your team is an investment in your business’s success.