In today’s fast-paced entrepreneurial world, HR in startups plays a crucial role as many business ideas remain only on paper, facing the difficulties that characterise the quest for growth within the startup ecosystem.
This is because the startup world is a dynamic and challenging environment where rapid growth and innovation must be the norm. That is why just having an idea is not enough; you need a capable and committed team to turn that idea into a reality.

In this context, HR departments are essential in ensuring the company survives and thrives despite the obstacles. However, this is not an easy job.
HR in startups face multiple challenges due to rapid growth and the need to adapt to a constantly changing context. Unlike established companies, startups need to be agile and flexible, which requires a particularly innovative approach to HR management.
Ifeel’s ‘Professional Development Toolkit’ provides essential tools to support teams’ growth and professional development.
Key aspects in the strategic management of HR in startups
HR is a critical part of any organisation, but its role becomes even more critical in the dynamic world of start-ups. Startups often experience rapid growth that brings with them unique challenges in managing people, such as internal organisation or adapting to change.
This is why HR in startups must have certain crucial characteristics that allow them to position themselves as established companies in the competitive business world. Among them, we can mention:
1. Devise a clear strategy
Before companies start to grow, it is vital to establish a clear strategy for HR in startups. This includes:
- Define clear policies: Establish rules and procedures for hiring, onboarding, performance appraisals, and conflict management.
- Creating an organisational culture: Defining and communicating the company’s values and mission to attract the right employees. This includes creating a model to guide the type of talent you want to hire.
- Implement management systems: Adopt technology that facilitates people management from day one.
2. Pay attention to talent retention
Attracting the right talent to strengthen the organisation is one thing, but it is quite another to make these people believe in the project and be happy enough to stay with the company.
This retention process is one of the main responsibilities of HR in startups and, unfortunately, one of the most neglected. As a result, employee turnover rates significantly increase. In fact, studies show that attrition rates in startups are as high as 25% in the first year.
These statistics demonstrate the immense need to pay attention to all phases of the employee lifecycle and to focus on creating a company culture that considers an employee experience that appeals to the individual’s sense of belonging to the company.
This includes key aspects such as ensuring the welfare of workers through:
- Implementing mental well-being solutions and physical health programmes.
- Promoting a healthy work-life balance.
- Creating an inclusive and diverse culture through implementing DEIB strategies that make all employees feel valued.

3. Adapt to flexibility and agility
Growing companies need to be flexible and agile, and HR departments in startups are no exception. A flexible methodology must be in place to effectively manage constant change, allowing quick modifications. To do so, one must take into account:
- The best way to keep the company up to date is for it to become an engine of growth for the workforce. By offering the possibility of training through courses, workshops, or seminars, you increase employee satisfaction and prepare them to face the challenges that characterise an evolving company.
- Maintaining continuous and transparent communication and implementing continuous feedback systems will allow for early identification and resolution of problems.
- Adjusting policies and procedures according to the changing needs of the business is essential to thrive in changing environments. To this end, strategies to implement in HR in startups can be resorting to creative alternatives, such as prevention initiatives in companies, reward systems, or gamification in HR departments.
«For instance, during the pandemic, when work dynamics changed, we were able to come together with ifeel to offer programs and services to cover the diverse needs of our large workforce.»
-Judith Palau, People Director at Mad Collective, ifeel partner company.
4. Technology as a strategic ally for HR in startups
Technology can be a great ally for HR in startups. It allows teams to focus on strategic, high-value tasks while automating routine, time-consuming tasks.
In this sense, AI in HR is revolutionising how startups operate HR. From candidate selection to performance management, AI can automate and optimise numerous processes.
Furthermore, by using it for data analysis, this enables informed talent management decisions, thereby improving the efficiency and effectiveness of the team. AI-based tools can help identify talent with specific skills, forecast future staffing needs and customise career development programmes, ensuring that the company is always one step ahead in talent management.

Unlock your team’s potential
At ifeel, we understand that a startup’s rapid growth presents unique challenges, but with the right HR management, these challenges can be managed effectively.
However, we understand that it can be difficult to implement such a strategy from scratch without professional help. To assist in this process, our team of psychologists specialising in mental well-being has developed a mental well-being program for companies aimed at helping companies enhance employee engagement and boost productivity.
This collaboration allows HR managers to receive personalised, data-based advice on the most effective measures for detecting employee mental health issues and assessing the workplace climate. It’s the best way to understand their needs.
Moreover, ifeel’s corporate mental well-being solution offers employees a structured mental health care service tailored to their needs at any time.
We hope you found this article on HR in startups interesting. If you want more information about our mental well-being solution for companies, simply request it, and we will contact your team soon.